International scientific consortium IMC
Tel.:+380 (44) 245 20 61, +380 (67) 536 90 92
Ukraine's Contribution to World Development and European Leadership.
Project: "World Economic Growth: European Leadership,
Development of Democracy, Co-evolution of Business, Nature and Society"
Open letter to the leaders of the European Union, European Parliament, EU Commission and leaders of the GUAM countries (Georgia, Ukraine, Azerbaijan, Moldova)
The project "Ukraine's Contribution to World Development and European Leadership" (http://www.c2 n.biz) solves urgent needs identified in the Report of the Madeleine Albright’s Commission on Global Security, Justice & Governance “Confronting the crisis of global governance” (2015, https://www.stimson.org/sites/default/files/Commission-on-Global-Security-Justice-Governance-A4.pdf) by implementing “a new framework for global economic cooperation,” which ensures the combination of international law with corporate (economic) law to deploy “dynamic and flexible multi-stakeholder coordination mechanisms.”
Today's increasing complexity of the world (Internet, Industry 4.0, climatic chaos, hybrid wars) creates enormous challenges for corporations, governments and society as a whole. Transcendental changes are destroying the “modus vivendi” and undermining the fundamental mechanisms of governance in economy, legal system and social processes. The degree of instability in developed and developing countries has practically equaled.
Attempts "to improve, reform, and modernize" do not solve the growing problems, and further deepen them. The search for "new shapes", the boom of "digitization" (including "digitization" of governance), as well as international and national development programs are limited to discourse and fragmented solutions, and can not cover neither the complexity of reality, nor the growing challenges.
The world spontaneously moved into a new virtual information and intellectual space, without changing the system of governance and institutions of the industrial age.
"Uncertainty" and chaotic changes become the dominant "new reality", which increases the "turbulence" of society. The growth of populism, separatism, radicalism, self-will and external vulnerability have already become characteristic features of modern societies.
Meanwhile, globalization, innovation and the Internet are creating great opportunities for economic growth and sustainable development. Modernization of technological, urban and ecological infrastructure, combating climate change and industrial pollution, institutionalizing new economic activities and deploying a new inclusive economy - all this can provide employment, decent work, welfare and a viable future.
Therefore, in 2015, a new world order was announced in the form of 17 Sustainable Development Goals (SDGs) unanimously adopted at the UN General Assembly Summit on 25-27 September 2015 "Transforming our world: the 2030 Agenda for Sustainable Development." The adoption of SDGs means expanding the international law towards a new "international law of sustainable development."
However, the institutions that would provide new economic mechanisms for achieving Sustainable Development Goals, to date, not been established. As a result, SDGs, which were to become the generator of economic growth, are not amenable to democratic control and did not provide expected economic development. The economy continues to operate within the postulate of "stimulating and expanding commodity markets."
Meanwhile, large-scale science-intensive sustainable development projects provide an asymmetric model of economic growth, when investment in infrastructure and the fight against climate change generate multiple economic growth.
However, today's crisis demonstrates that the implementation of such projects lies outside the traditional Westphalian state-dominated governance model.
Responding to these needs, the Consortium conducted scientific research to design the "digital governance frame", that would provide a holistic governance model for the Sustainable Development Goals as well as the institutionalization of the "new reality".
Such a frame was developed in the form of a coherent legal space, which combines the principles of international law with the mechanisms of corporate (commercial) law, which allows deploying “dynamic and flexible multi-stakeholder coordination mechanisms.”
This digital frame provides effective responses to global and local problems and allows to implement:
- Strategic governance frame for combating climate change and disaster risk management;
- International management system for Sustainable Development Goals;
- Virtual Economic Environments (VEEs) for corporations for the realization of large-scale science-intensive infrastructural projects and sustainable development projects;
- Institutional frame for Digital Economy, AI, Fintech, VR/AR, Industry 4.0, IoT, biotech, etc. (for legal regulation, taxation and development of these areas for the public good).
This frame provides management for projects to achieve Sustainable Development Goals, as well as the deployment of inclusive economic models “consumption-production” (according to Goal 12). This leads to economic growth, development of democracy and provides the leadership of the Europe in the face of increasing global challenges, social turbulence, and a "global economic reset."
The frame addresses the challenge posed by the UN Conference "Rio + 20" (2012): "How to improve international coordination for Sustainable Development by building an institutional framework."
Frame creates massive jobs for frame-managers who provide management of phase portrait of companies (diagram of business potential) and bifurcation business processes to preserve the viability and efficiency of business in an increasingly turbulent economy and nonlinear market changes.
We propose to discuss the solution of today's problems, the relevance of which is given in the Annex. The proposed solution is aimed not at "reform", but concerns the institutional pragmatism for restoring the mechanisms of economic growth and development of capacity.
The “digital governance frame”, which provides the legal and institutional regulations for the information and intellectual space, is implemented through the establishment of the International (Interstate) Corporation (Hub) for the Management of Sustainable Development Projects.
The project allows to:
- ensure economic leadership of Europe due to: 1) highly dynamic information and intellectual capacity of the countries-coordinators of the project (including Ukraine); 2) formation of institutions of the Web; 3) large-scale projects aimed at the implementation of 17 Sustainable Development Goals;
- create new jobs within today's employment reduction caused by Artificial Intelligence, including jobs for scientists, engineers and highly skilled professionals in international sustainable development projects;
- end the war in Ukraine through the establishment of "The International (Interstate) Corporation (Hub) for the Management of Sustainable Development Projects" and transfer to its governance the parts of the Donetsk and Lugansk regions and the Crimea (examples: Singapore, Hong Kong, etc.) under the jurisdiction of Ukraine. The establishment of such international "factorie" (trading posts) will enable the European Union to deploy trade distribution network "Lisbon - Seoul" with extensive logistics, resource and financial capacity.
In 2015-2016, the project was supported on behalf of H.E. Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy / Vice-President of the European Commission as well as the Ministry of Economic Development and Trade of Ukraine and the Ministry of Justice of Ukraine. The Committee on Foreign Affairs of the Parliament of Ukraine took note of the draft. More than 20 thousand users took part in experimental and practical operation. A working International conference was held to discuss the project. The project is currently completed by the Ukrainian side and requires coordination at the level of the leaders of the European Union.
The legal basis for the project are the "International Declaration" + "Agreement to Establish the International Corporation (Hub) for the Management of Sustainable Development Projects ".
Opening a public debate (public dialogue), we ask to send comments and suggestions on the draft text of the "International Declaration" and "Agreement to Establish the International Corporation (Hub) for the Management of Sustainable Development Projects" (www.c2n.biz) by email: email@example.com, firstname.lastname@example.org.
Responding to the principles of the Declaration of Sibiu (May 9, 2019) European Union ("Europe will continue to be big on big matters..."), we suggest to EU leaders, European Parliament, European Commission and interested leaders of the GUAM countries, international and civil society organizations to participate in finalizing the project and its implementation.
Annex: Relevance of the project.
On behalf of the Scientific Council of the consortium,
Coordinator: Dr. Sergei Polenok, Executive Director.
Tel.: +380 50 558 69 17. E-mail: email@example.com
Relevance of the project:
1. "Policy uncertainty" and "global economic reset" (IMF Managing Director Christine Lagarde, Communiqué of the Shanghai Cooperation Organization).
2. Loss of governance: Lack of strategies and economic mechanisms to create new jobs, the need to create a balanced system of taxes and employment, a catastrophic decline in consumption, the banking uncertainty, historically high debt levels, rising financial vulnerabilities.
3. Loss of control over the legal system: slowing administrative processes due to overregulation; the growth of relations that are not subject to legal regulation (Internet, Artificial Intelligence, bio-technology); involution of the judicial system. The need for rapid management, dynamic law, self-organization and auto-formalization of relations, establishment and institutionalization of new forms of control. Transition from geo-economic right of pragmatics to geocultural right of uniqueness.
4. Rising individualism, innovation, stratification of society, migration processes, problems of representative democracy.
5. Cognitive dissonance in society: “the second information barrier” (inability to handle growing volumes of information, aggression of fake information).
6. Rising complication of reality: the need to expand management systems (“the Law of Requisite Variety” by W.Ashby).
7. Geo-political risks: Russian aggression, Syria, North Korea, Venezuela, migration challenges, Chinese investment project "New Silk Road" ("One Belt One Road"), High-tech Domination Plan "Made in China 2025", e-commerce platform Alibaba (576 million users, 2 billion by 2036), payment system China UnionPay (operates in 170 countries), mobile payment services Alipay and WeChat Pay (1.4 billion users, turnover over $10 trillion), payment services Alipay and WeChat Pay, Huawei smartphones and 5G, quantum communication line Beijing-Shanghai, hydrogen cars, as well as the rising Fintech and cryptocurrency sector, including the development of virtual currency (private e-money).
8. Threats: registration in the Alibaba the non-resident companies (European companies); Alibaba’s transformation into the only global platform for Digital Economy, which creates real conditions for global Chinese domination. The start of such processes is confirmed by the offer of Jack Ma (former head of Alibaba) in 2017 to US President D.Trump to create 1 million jobs in the United States on the Alibaba platform.
Deploying 5G-network creates global technological platform for the global implementation of Artificial Intelligence. Under these conditions, employment is possible only by expanding labor market with a new information-intellectual dimension. This means the transition to "augmented economy" in which the main drivers of economic growth are Digital Economy and large-scale, science-intensive, engineering projects aimed at achieving the Sustainable Development Goals.
9. In the context of global climate change, industrial pollution, population growth, unprecedented urbanization and the transition to Industry 4.0, a new viable technological, urban and environmental infrastructure is needed. The distinctive features of this infrastructure are the ability to self-repair, self-development and transformation, as well as disaster resilience and the existence of a strategic governance frame.
Together with the abrupt change of means of communication (5G-network deployment) and the transition to new energy sources, this "inclusive infrastructure" will ensure the implementation of the of Sustainable Development Goals.
10. Historical leadership of Europe: philosophy, technology, democracy. Today's emphasis in science on "profit" instead of "search for truth." Prospects of Europe's geo-political leadership in the "global economic reset": deploying the Viable Future Model, the project "World Economic Growth: European Leadership, Development of Democracy, Co-evolution of Business, Nature and Society."
11. Draft Declaration and Agreement to Establish the International Corporation (Hub) for the Management of Sustainable Development Projects: new institutions, institutional governance frame, "economic inclusion", resource mobilization and management of projects with multiple beneficiaries / stakeholders, digital accounting of beneficiaries, digital arbitration ("digital law"), recovery of economic growth mechanisms and capacity development.
12. Sustainable development projects that add to the rational (objective) components a subjective (humanitarian, transcendental) dimension, aimed at a viable future and harmonization of society.
13. Ensuring leadership, fairness, expand civil rights, and the viability of European corporations and banks: sustainable development projects, Fintech, Industry 4.0, "Quantum Economics and Industry", Digital Economy (digital property, global institute of digital companies with registration on European servers), Artificial Intelligence. European leadership also includes: knowledge management, confronting climate change, industrial pollution and environmental degradation, creating a resilient technological, urban and environmental infrastructure.
Leadership is provided by the information-intellectual potential of the coordinating countries, the common goals (SDGs), a positive "image of the future" and the "institutional framework" of legal and economic collaboration.
14.The choice of coordinating countries is based on a set of digital gadgets, communications, and averaged indicators of the country's IQ (which characterizes the country's information and intellectual potential). Such countries will ensure the economic growth of Europe and the world by mobilizing the information and intellectual component of society and providing the multi-stakeholder coordination in large-scale sustainable development projects in the new institutionalized environment.