NationStates Jolt Archive

Category: Free Trade
Strength: Mild

The United Nations has been working hard on unifying all nations of the world, but there is still more work to be done. One step that must be taking is integrating an universal currency that may be used in all member nations.
This act includes:

1. Recognizing that due to the number of nations in the world, and the fact that new ones are appearing daily, that before long, the task of maintaining conversion rates between different currencies will be impossible.
2. Establishing a global currency, Earth Sphere Universal Currency (ESUC).
3. Establishing a bureau of the United Nations, the United Nations Currency Branch (UNCB), which will be responsible for creating and maintaining this currency. No individual nations will have the ability to print this currency.
4. Allowing the currency of any nation to be exchanged for ESUC, at the proper exchange rate.
5. Allowing ESUC to be exchanged to the currency of the nation you are currently in by an UNCB office in that nation.
6. Allowing any national goverment the ability to exchange their currency for ESUC.

For the planet to become a unified world, a universal currency must be established sometime. However, it is impossible to have all members of the UN switch to this currency in a short amount of time. Thus, this act, if passed, will only start that task by introducing a global currency and allowing individual nations to slowly switch over to it at their own pace. Hopefully this will increase free trade and help unify the world by taking down the barriers of different currencies hampering trade.

I've already submitted the proposal, but I want to see what everyone thinks. This is my first one and I know it could use a little work. Well, comments and critiques?

Um... you never actually require the use of the international currency in this proposal. All you do is make it legal to use it.

Buying and selling money (sorry, it's late and I can't think of the industry name) is a legitimate business that many people use to make money not only for themselves, but also for each government involved. Having an international currency would eliminate this.

I know that all this proposal does is create it and make it legal to use it. However, I feel that trying to make a proposal where all nations in the UN must use this currency at the very moment it was passed would be going a bit too far. This proposal is just meant to take a step in that direction, and possibly converting over to it completely at a later time.

As to the fact that a type of business may be lost, well, I can't really think of a way around that. The way I look at it is, "Sure, a couple of businesses may be lost at first, but the end result will be worth it."

There's also the problem that this issue only effects UN members (as always), not the whole world. What you'll end up having is a UN currency, while the rest of the planet sticks with what they've got.

I'm pretty sure it's illegal to mandate the use of a single currency (game mechanics). Given that this proposal doesn't require that, many will simply ask "what's the point?"

Most radical proposal I've ever heard. Ridicuously unrealistic (in real life, as well as nationstates), and to be quite frank, at this present moment in time, can be considered nothing more than an ideal.

After all, think about the wrangling behind the ESC.

Greetings,

Even if this proposal was compatible with the game rules, the unification of national currencies can't be independent from a global coordination strategy among the national economies involved.

Creating a world-wide currency authority, without considering the compatibility and similarities of the corresponding national economies, would cause several disasters, not only in economy but also in social terms. Taking away the currency sovereignity from national government makes this State unable to develop effective policies in many ways, such as bounding inflation, power competitiveness, atract foreign inversions, etc.

Take a look to the European Union's unification process. It has taken so many years to build an unified market -previous condition to currency unification-, reduce national economic distortions in several areas, activate some wealthy redistribution programs, control the most important macroeconomic variables and things like that. Besides, there is a strong agreement (Stability Pact)which prevent the public deficit from rising too much. All these things are absolutely necessary in order to stablish a common currency with some possibilities to success.

The Government we represent considers that there are many economic areas in which it would be convenient to enable coordination policies, better than start a currency unification. Tha actual diversity of national economies clearly advices against the main objective of this proposal.

Sincerely,

Foreign Affairs Minister of Limore
Public Funds & Planning Minister of Limore

In this proposal's defense, the Euro has risen to become much stronger than the USD in the short time it has been in use. Be that as it may, the comment about the eventual development of a UN currency is true, so this proposal is impractical.

the unification of national currencies can't be independent from a global coordination strategy among the national economies involved.

Creating a world-wide currency authority, without considering the compatibility and similarities of the corresponding national economies, would cause several disasters, not only in economy but also in social terms. Taking away the currency sovereignity from national government makes this State unable to develop effective policies in many ways, such as bounding inflation, power competitiveness, atract foreign inversions, etc.



No need for me to post in my own words what Limore has so very correctly identified the issues.