“I always tried to understand systems and to find the drivers that allow for the largest effect with the smallest effort.” – how Prof. Radermacher wants to solve the problems of the world top down and why markets need new frameworks.

Prof. Dr. Dr. Franz Josef Radermacher, Director, Re-search Institute for Applied Knowledge Processing (FAW), Ulm, Germany

Today 90% of financial flows are hot, speculative money and not associated with trade or long-term investments, 2.8 billion people on our planet live on less than 2$ a day, over 1 billion do not have adequate ac-cess to water, 840 million are malnourished, the extreme resource consumption of the western world destroys our environment irreversibly – and still there are people out there who claim that our biggest problem is some fundamentalist terrorists and that we should still pro-mote our current sys-tem. Of course, there are thousands of valua-ble initiatives out there, but as long as we do not change the meta-framework in which we operate, all of these initiatives will be fighting the symptoms.
What makes Prof. Radermacher’s work especially interes-ting is the fact, that he approaches the challenge of having positive impact in this world top down, not bottom up, as most of our other interview partners. As one of the leading system analysts in the world, he wants to contri-bute to the long-term ability of our world society to sur-vive by changing the fundamental frameworks on which all our daily activities are based on.
In his brand new, still box-filled office in Ulm, Prof. Rader-macher immediately creates the impression that he has known for a long time what he wants to achieve with his work and how this can be done. As he tells us, “Since my time in school I have tried to understand systems and to identify areas where small changes lead to massive posi-tive effects. Because I could never accept that rational human beings would not be able to solve their largest problems, I have always tried to find sensible solutions focusing on the way systems need to be changed and controlled so that human beings can live together in peace and harmony.”
He recognized that the current economic system, and foremost the fundamen-talist free-market logic behind it, is one of the biggest drivers of enormous inequality on earth which was, and still is, the reason for many problems we face. To solve this problem, Prof. Radermacher analyzed the situation in a number of international studies and his book “Balance or destruction”, and suggests a push of the eco-social model as an alternative to our current framework. Since 2003 he coordinates the “Global Marshall Plan Initiative” that shows the way to implement this eco-social model.

This site gives you an impression on Franz Josef Rader-macher’s thoughts and recommendations, while the book “MyImpact” will present more of them.

Franz Josef Radermacher’s selected quotations:
“Very early on I could not accept that the world is orga-nized and regulated in a way that would not allow it to solve its own biggest problems.”

“For me the thing is quite simple. I cannot accept the extreme inequality existing in our world. So, I tried to understand why it steadily increased over the last 250 years. Being a system analyst, I came up with the simple answer that our current economic framework of the free market economy - which does not consider sufficiently environmental, social and cultural aspects - necessarily leads to this rising inequality and all its negative con-sequences. The alternative solution I am trying to push with the help of the Global Marshall Plan Initiative is an Eco-social market economy. Integrating the environ-mental, social and cultural guidelines in our framework is the most efficient way to improve life for 5 billion people on this planet. ”

“The world is convinced that market systems can solve all problems. Markets, however, mean the combination of competition and frameworks. It is the frameworks that are insufficient; we are quite good at competition.”

“I advocate the framework of an eco-social market eco-nomy as an alternative to the current model of market fundamentalism. This model will include the social, cul-tural and ecological needs and not only the economic expectations of a small wealthy part of our world’s society.”

“The most important thing to do is to combine the exis-ting global regulation bodies - WTO, WIPO, ILO, UNEP, etc. -, institutions - IMF, WB, etc. - and sanction mechanisms in a way that would bring the world closer to an eco-social market economy.”

“Living in a global economy we have to take care of the global rules. There is no way that economic activities that contradict global environmental and social rules are still allowed to make huge profits.”

“The fact that global mobility and transactions are not taxed, allows global corporations to exert extreme pres-sure on high income states to decrease their social sys-tem standards and environmental regulations.”

“Within our current international political and economic frameworks people can use the global economy to trans-fer more money from the bottom (poor people) to the top (wealthy people) while claiming to enrich the whole world on the basis of a free market.”

“The EU model of “co-financing for standards” could be-come a world-wide role model to fostering development in poor countries while achieving social and ecological targets and standards.”

“Apart from convincing different interest groups (small and medium enterprises, students, etc.) to support new rules we first want to mobilize the EU to say: “No” to market fundamentalism. We need eco-social struc-tures.””

“I strongly believe that our world is logical enough to find sensible solutions for a good future for everybody and is also able to implement them before new terror will force us to do.”

Some facts about Franz Josef Radermacher:
Prof. Dr. Dr. Franz Josef Radermacher (1950) is married and has one son. He made his Ph.D. in mathematics at RWTH Aachen and his Ph.D. in business administration at the University of Karlsruhe. In 1982 he did his habi-litation in Aachen.
Since 1987 he is director of the Re-search Institute for Applied Know-ledge Processing (FAW) in Ulm, Germany, and is holding a chair for databases and artificial intelligence at the University of Ulm. He was and is member of different organizations and commissions, among others he led the workgroup on “Sustainability and Information Society” of the “Information Society Forum” at the European Commission, is Vice president of the “Eco-Social Forum Europe”, is a member of the Club of Rome and coordinates the Global Marshall Plan initiative.
He is author of more than 200 scientific articles and several books in the area of applied mathematics, oper-ations research, applied informatics and systems theory including questions of ethics/philosophy and consequen-ces of new technologies.

Some facts about the Global Marshall Plan/Planetary Contract:
The Global Marshall Plan combines a pragmatic concept for achieving the Millennium De-velopment Goals (halving extreme poverty, primary education for all children, gender equality, re-ducing infant mortality by 2/3s and improving maternal health, fight against HIV/Aids, global partnership for development) with the long-term perspec-tive of a worldwide Eco-social market economy as the framework of global order. This presumes that the richer countries are ready to co-finance development in finan-cially poorer countries, which would accept in return, core social and ecological standards. This “global contract” should lead to a global economic miracle.


If you would like to engage with the work of the Global Marshall Plan Initiative or get to know more about Prof. Radermacher’s work please visit www.globalmarshallplan.org
Or, for more specific requests, contact joanna.stefanska@myimpact.ch or wolfgang.hafenmayer@myimpact.ch directly


Two major references

Radermacher F. J.: Balance or Destruction: Ecosocial Market Economy as the Key to Global Sustainable Development. Ecosocial Forum Europe (ed.), Vienna, 2004, available via Fax +49(0)4082090421 or at: www.globalmarshallplan.org

Radermacher, F.J.: Global Marshall Plan / A Planetary Contract. For a Worldwide Eco-Social Market Economy. Global Marshall Plan Foundation (ed.), Hamburg, 2004, ISBN 3-9809723-0-5