A summary of an article from the Global Futures Bulletin #97, "Globalisation, Protectionism and 3rd World Development" Richard Douthwaite pointed out in his article "Sustainable economies and globalisation" that " net" outflows of capital from mature economies result in greater income and wealth inequity in those economies. He suggested that it is difficult to claw back equity standards once they have been eroded. The authors believe that equity standards must be agreed on and the least painful strategies implemented following Principle 5, of the Rio Declaration, Agenda 21, "to decrease disparitries in standards of living" One strategy to increase equity might be to impose a progressive Elected Social Development Tax where taxpayers may choose amongst a wide range of jprograms and charities they wish to support. Another strategy is to increase resource taxes particularly those with high environmental impact such as fossil fuels, pesiticides, non-recyclables. If these taxes are used for social servies and fund zero tax for low wage earners dispartiy can be reduced. The aim being over the next 5 to 10 decades to ultimately shift focus toward community based development and focus on quality of life indicators. What is essential in the short term is to establish an appropriate global regulatory framework to ensure that corporate driven development is ecologically sustainable and socially just. Corporate driven development and transfer of capital must be recognized as expedient for increased living standard of least developed countries. While some critics argue that corporate driven development and social justice are an anathma, another argument says that given a strong global regulatory framework capital will conform since it has no where else to go. The creation of capital is dependent on conditions for growth. The answer must lie in regulation which is: --global with provision for variation and flexibility as the situation may warrent -- enforceable at minimum cost --smart, working with private enterprise using global instuments Proponents of environmentally sustainable and socially just development must get together with proponents of globalisation to hammer out a regulatory framework that works for all. The framework must include strategies and incentives for direct investment to least developed countries. The WTO thus far has functioned as a closed shop. This needs to change. Ultimately over the next few decades we must work towards an optimum mix of government (reinvented), corporate interests (tempered) and local community driven interests (just recently rising in influence). Much of the anti-WTO movement in Seattle is in fact lobbying for a different sort of cautious, controlled and regulated globalisation that deals with environment, labour, social, intellectual property, cultural and development issues. Transnationals themselves are seeking regulations--a global regulated environment which provides more consistent investment environment, reducing bureacratic procedures, ad hoc fluctuations, and investment risk. How to balance the question for protection of jobs in developed countries with the transfer of capital to the least developed? The increase of transfer of capital to developing countries must happen in a controlled fashion (with taxes and incentives). Since there are already problems of unemployment partly attibutable to the flight of captial to countries where labour is cheaper, strategies for dealing with unemployment need to be improved with such strategies as: ---reducing inequitiy (taxes mentioned above) --shorter work week --deter automation where only marginal cost-benefits are acheived --resource taxes to be used to fund sustainable development creating jobs (The only problem I see with this is there is no global body to implement anything--Melanie's comment)