The eco-social market economy (ESME), also known as the socio-ecological market economy (SEME) or social and ecological market economy, aims at balancing

free market economics Free may refer to: Concept * Freedom, having the ability to do something, without having to obey anyone/anything * Freethought, a position that beliefs should be formed only on the basis of logic, reason, and empiricism * Emancipate, to procure ...

, the strive for social fairness and the sustainable use and protection of the

natural resources Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. ...

. It was developed by

Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...

n politician

Josef Riegler Josef may refer to *Josef (given name) *Josef (surname) Josef is the surname of the following people: * Jens Josef (born 1967), German composer of classical music, a flutist and academic teacher * Michelle Josef (born 1954), Canadian musician and tr ...

during the 1980s, expanding on the original concept of the

social market economy The social market economy (SOME; german: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system alon ...

, an economic model first advocated by

Konrad Adenauer Konrad Hermann Joseph Adenauer (; 5 January 1876 – 19 April 1967) was a German statesman who served as the first chancellor of the Federal Republic of Germany from 1949 to 1963. From 1946 to 1966, he was the first leader of the Christian Dem ...

, and is considered the economic format which the majority of nations in

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...

follow.

Definition and aims

The eco-social market economy is a holistic model based on a strong and innovative market economy. The eco-social market economy requires that the protection of the environment and social fairness are vital criteria for all economic activity. The protection of the

ecology Ecology () is the study of the relationships between living organisms, including humans, and their physical environment. Ecology considers organisms at the individual, population, community, ecosystem, and biosphere level. Ecology overl ...

and

habitat In ecology, the term habitat summarises the array of resources, physical and biotic factors that are present in an area, such as to support the survival and reproduction of a particular species. A species habitat can be seen as the physical ...

for future generations are central issues for eco-social market economies. Its supporters maintain that free markets alone are not able or interested to protect the

environment Environment most often refers to: __NOTOC__ * Natural environment, all living and non-living things occurring naturally * Biophysical environment, the physical and biological factors along with their chemical interactions that affect an organism or ...

, hence government action is necessary. The creation of higher social and environmental standards, especially in

developing countries A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...

, is seen as a vital step to world peace in the future. The eco-social market economy aims at "higher chances for the brave, more solidarity and more responsibility for natural habitats".

Proposed measures

Frameworks and Guidelines for fair competition must be implemented, not only in the EU, but on a global level. It is a foremost demand to politics to create such a political landscape of global connectivity and cooperation. Eco-social market economists support the implementation of the

Millennium Development Goals The Millennium Development Goals (MDGs) were eight international development goals for the year 2015 that had been established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millenn ...

and the Kyoto Protocol, and demand a stronger cooperation between the

United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...

, the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...

, the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...

and the

International Labour Organization The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is the first and o ...

to create the said framework. On a national level, it favours higher taxes on fossil-fuel energy sources ( environmental taxes), while at the same time lowering

income taxes An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...

. Public subsidies must, in their opinion, only be paid to promote sustainability. Environmental

pollution Pollution is the introduction of contaminants into the natural environment that cause adverse change. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the ...

and resource use must be included in the calculation of product processes and in product prices. A strong emphasis in education about issues on environmental protection are seen as being absolutely necessary to create market awareness.

Global Marshall Plan initiative

The idea of a global marshall plan, first brought forward by

Al Gore Albert Arnold Gore Jr. (born March 31, 1948) is an American politician, businessman, and environmentalist who served as the 45th vice president of the United States from 1993 to 2001 under President Bill Clinton. Gore was the Democratic no ...

in the 1990s, is a main part of eco-social thinking. The idea of a

Global Marshall Plan The Global Marshall Plan is a plan first devised by former American Vice-President Al Gore in his bestselling book ''Earth in the Balance'', which gives specific ideas on how to save the global environment. Gore states: "The model of the Marshal ...

is based on two pillars: # Innovative additional fundraising required for the actual realisation of the UN Millennium Development Goals on the basis of partnerships, co-responsibility and good governance. # The achievement of a global eco-social market economy by means of implementing the same ecological and social standards in all institutes and agreements on a global scale. The funding of these development measures are a levy on financial transactions, a kerosene tax or

special drawing rights Special drawing rights (SDRs, code ) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency ''per se''. They represent a claim ...

with the IMF. The big challenge is finding an effective way of translating money into development without losing to corruption worldwide. Among the prominent supporters of the initiative are

Muhammad Yunus Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance ...

Hans-Dietrich Genscher Hans-Dietrich Genscher (21 March 1927 – 31 March 2016) was a German statesman and a member of the liberal Free Democratic Party (FDP), who served as Federal Minister of the Interior from 1969 to 1974, and as Federal Minister for Foreign Affa ...

Ernst Ulrich von Weizsäcker Ernst Ulrich von Weizsäcker (born 25 June 1939) is a German scientist and politician ( SPD). He was a member of the German Bundestag and served as co-president of the Club of Rome jointly with Anders Wijkman 2011 – 2019. Family A member of ...

and

Jane Goodall Dame Jane Morris Goodall (; born Valerie Jane Morris-Goodall on 3 April 1934), formerly Baroness Jane van Lawick-Goodall, is an English primatologist and anthropologist. Seen as the world's foremost expert on chimpanzees, Goodall is best kn ...

References

External links

European Eco-social Forum

{{DEFAULTSORT:Eco-Social Market Economy Free market Environmental economics

Definition and aims

Proposed measures

Global Marshall Plan initiative

See also

References

External links