at the opening session of the International Conference on 
"Asia-Europe Economic and Trade Relations in the 21st Century and 
the Second Eurasian Landbridge," in Beijing, China, Oct. 27.} 
While the present meltdown of the global financial system 
obviously represents enormous dangers for the existence of entire 
nations and their populations, the profound discreditation of the 
institutions associated with that system, represents, at the same 
time, a unique and unprecedented chance, to replace the unjust 
principles of the old political and economic order with new, just 
ones, which will allow the survival and well-being of all nations 
on this planet. 
To review briefly the evolution of this question, of relations 
among nations since the end of the Second World War: It was U.S. 
President Franklin D. Roosevelt's firm intention, to end the 
system of British colonialism, a view he expressed in his famous 
dispute with British Prime Minister Winston Churchill at the 
Casablanca conference. However, Roosevelt's untimely death left a 
vacuum, so that the emerging postwar order was based on a variety 
of mixed assumptions. On the one side, the Bretton Woods System 
contained certain useful features, such as fixed parities among 
currencies, limited convertibilty of some currencies, a gold 
reserve standard, etc., which allowed not only for the post-war 
economic miracles in Germany and Japan, but also for a period of 
growth and stability in the industrialized nations in general. On 
the other hand, the so-called developing countries were put into 
a situation of relative disadvantage from the beginning. Also, 
the assumptions of the Cold War, i.e. managing the world by 
playing the Soviet Union against the West, represented serious 
corruption. Despite these flaws, the system functioned relatively 
well, from the standpoint of allowing real growth in most parts 
of the world economy. 
But after the 1962 Cuban missile crisis and the assassination of 
U.S. President Kennedy, the international financial oligarchy 
decided to inject certain axiomatic changes into the belief 
structure of the populations and institutions of the West. These 
consciously created paradigm-shifts, were orchestrated both in 
the cultural and moral realm, as well as, in a corresponding way, 
in the field of economic policy. In the first area, it was 
essentially the sex-rock-drug-counterculture which led to the 
moral and intellectual erosion of the fundamentals of Western 
society. In the economic field, corresponding neoliberal ideas, 
such as the utopia of the post-industrial service sector economy, 
which influenced governments to create conditions where people 
invested less and less in capital-intensive and high technology 
areas. Subsequently, the idea of producing income shifted away 
from industry and agriculture, to the idea of making fast profit 
in the financial world. 
The dollar devaluation following the collapse of the British 
pound, in November 1967, represented the first blow to the 
stability of the system, leading to the circumstances under which 
President Nixon decoupled the dollar from the gold reserve in 
1971, thus allowing the creation of the "eurodollar Market"; the 
power of credit-creation had shifted away from sovereign 
governments to private financial interests and unregulated 
offshore markets. By the mid-1970s, the Anglo-American-dominated 
international financial oligarchy decided to impose what they 
called a "controlled disintegration of the world economy," which 
was based on the expressed intention to absolutely not allow the 
occurrence of any "mercantilist" tendencies in the developing 
sector. This was the time when the International Monetary Fund 
harshened drastically its "conditionalities" policy against the 
so-called Third World, forcing those countries again and again to 
devalue their currencies. This made their imports of needed high 
technology goods more expensive, while lowering their export 
earnings, forcing them, at the same time, to pay more for their 
increased debt-burden and less for their social budgets. The IMF 
increasingly acted not only as an economic, but also as a 
political institution involved in fiscal manipulation, propping 
up authoritarian and corrupt regimes, while severely crippling 
progressive ones. Such fiscal destabilization, and interference 
into the internal affairs, of developing countries, made the very 
idea political independence a sham. At the same time, Western 
media used their far-reaching hegemony to spread the "Hollywood" 
and related counterculture, in an effort which can only be called 
cultural imperialism. 
What followed, was a whole series of de-regulations of the 
international financial markets, preparing the grounds for wilder 
and wilder speculative schemes. If the insider trading, hostile 
takeovers, and junk-bond operations of the 1980s were already of 
a criminal character, then the cancerous growth of the 
derivatives markets of the 1990s was even more so. Yet, all 
leading financial institutions and governments of the West 
defended the illusions associated with that form of fast 
One essential feature of this already described paradigm-shift, 
was that the international oligarchical forces made major efforts 
to eliminate the sovereign nation-state and its capacity to 
interfere on behalf of the common good of the people, and thus 
limit the oligarchies' ability for looting. If one is not blinded 
by labels, then "globalization" is nothing but a neo-feudal world 
system, in which production is "outsourced," where slave labor is 
available for the cheapest price. Free market policies have 
turned the whole world economy in a global plantation, with very 
few exceptions, such as China. 
A major inflection point in this process, was the opening of the 
wall between Eastern and Western Europe, which was described by 
many correctly the great historic chance of Europe of this 
century, since it indeed offered the opportunity to put the 
relations between East and West, and North and South, on a 
completely different basis. But the American economist Lyndon 
LaRouche warned, as early as November 1989, that if the then 
already bankrupt system of the "free market economy" was 
superimposed on the collapsed Soviet system, the East would be 
thrown back to the level Third World, raw-material-producing 
countries and an even more dramatic collapse of the global 
economy would be the result. Mr. LaRouche proposed, instead, that 
based on the principles of physical economy, the same kind of 
infrastructure development corridors, as they are now envisioned 
for the new Eurasian Landbridge, should be constructed from 
Western Europe into the East. Unfortunately, these proposals were 
rejected, and the so-called "IMF-reform package" was imposed on 
the economies of the East, leading to the predicted catastrophic 
result. The unified Germany was forced by the former occupying 
powers not only to give up its strong D-Mark but to capitulate to 
a financial order, which is directly responsible for the present 
The present derivative bubble is the greatest bubble in the 
history of the financial markets, and will burst, as certainly as 
previously much smaller bubbles, such as the Dutch tulip bubble 
or the John Law bubble burst. This system is now in its final 
phase, and will not outlast this year. The only question is, will 
the whole world go to hell with this prospect, or will a 
responsible group of nations take initiative in time, to replace 
the old bankrupt system with a new one. 
But once it is clearly recognized, that the collapse of the old, 
essentially still colonial system is occurring, it is important to 
establish and agree upon those principles, which should be the 
basis for the new era of mankind. 
For the immediate emergency reorganization, the experience of the 
Non Aligned Movement (NAM) is a useful reference, and a lesson 
that the mistakes made should not be repeated. The main reason, why

the NAM, despite excellent intentions, remained relatively 
inefficient, was because it allowed itself to become a sort of 
mirror image of the United Nations, in the sense that, many 
member countries would use the NAM as a forum to bring up "their" 
problem, or "their" interests, as opposed to that of some other 
member-country, and this setting made it quite easy for some 
outside or supranational forces, to manipulate the situation. 
Because of this shortsightedness, repeatedly, member countries 
could not even prevent conflicts and wars among themselves. 
 If the new, just world economic order is supposed to function, 
the ancient philosophical paradox of the One and the Many has to 
be addressed. The unifying principle has to be the development of 
mankind as a whole, and there has to be a intelligible scientific 
principle how that development can be measured. At the same time, 
the principle of national sovereignty must be absolutely 
guaranteed. Universal history proves that there must absolutely 
not be any contradiction between these two ideas. 
The emergence of the modern nation state in European history, was 
a ground-breaking accomplishment of the Renaissance period in the 
15th century. Up to that point, 95% of all people lived in a de 
facto condition of serfdom and slavery. Only 5% of the population 
was literate and participated in whatever culture belonged to 
appropriate civilization. Society was ruled by imperial power 
structures, but these in no way could be called states already. 
In the period between the 11th and the 13th centuries, the notion 
of sovereignty gained relevance in the deepening debate about the 
theory of the state. A multitude of memoranda and papers about 
what it meant to achieve sovereignty, by not tolerating a 
superior ruler above oneself and sovereignty toward foreign 
nations, were written. Only slowly, through the contributions of 
such philosophers and poets as Raimundus Lullus and Dante 
Alighieri, the concept was developed, that the rulers were 
answerable to the common good of the people, and that nobility 
was not defined by birth or possession, but by the 
self-enoblement of the individual; ideas which have a real 
affinity to the thoughts of Confucius and Mencius. Thomas of 
Aquinas and others developed the argument, that the common good 
was knowable and measurable through natural law, which man was 
capable of recognizing by the power of his reason. 
The establishment of the first nation-state under Louis XI in 
France in the 15th century, was able to realize in practice, the 
understanding that scientific and technological progress are a 
precondition for the improvement of the living standards of the 
population and that the state is therefore obliged to foster such 
progress, and also to seek to increase the ratio of the 
intelligentsia within the population at large. But the 
corresponding crucial breakthrough in the emergence of the modern 
nation-state, was the development of the representative system by 
Nikolaus von Kues, which established for the first time the idea 
of the rulers' accountability, and of a reciprocal legal 
relationship between the governing and the governed. The idea of 
participating in self-government was born, and therefore the idea 
of the inalienable rights of every individual was established for 
the first time. Three hundred years later, these concepts would 
shape the first explicitly anti-oligarchical constitution, that 
of the American founding fathers. 
The reason why the principles of a future just new world economic 
order must absolutely reject any form of supranational 
institution, is obvious. Only the sovereign nation-state embodies 
the principle of accountability and thus protects the rights of 
the individual. Since, contrary to the mistaken assumptions of 
the bankrupt free-market economy, it is not the power to `buy 
cheap and sell dear,' which is the source of wealth in society, 
but only the creative potential of the individual, it is not only 
the duty, but the very self-interest of the state, to foster the 
maximum development of all of its citizens. It is the individual 
creative mind which is capable, again and again, of forming 
adequate hypotheses about the laws of the universe, which 
successively represent the basis for scientific and technological 
progress. If this progress is translated into ever-improved 
machine-tool design, and if these new machine-tools are applied 
in the production process, this leads both to an increase in the 
productivity of the work-force, as well as the industrial 
capacity. Again, it is therefore the most fundamental 
self-interest of each sovereign nation-state, to develop all 
potential of all of its citizens. In the upcoming negotiations 
about a New Bretton Woods Conference, but also in the agreements 
about a new set of trade and tariff agreements, this has to be 
taken into account. 
In modern times, it has been the American economist Lyndon 
LaRouche who developed a scientific measurement for the 
intelligibility of the common good, and for what are the 
necessary criteria for development. Over the long term, that 
yardstick for a successful society, is LaRouche's notion of the 
relative potential population-density, which can be measured in 
the increase or decrease of a related function. Population 
density is exactly what it appears to be at first glance: it is 
the average number of persons who can live and be sustained on 
one square kilometer. The increase of the actual and potential 
population-density over the last millennia, to presently circa 
five and a half billion people in the world, is the result of the 
continuous production, distribution, and effective absorption of 
scientific and technological progress. 
The transformation of productivity per-square-mile and 
per-capita, reflects itself in the following qualitative changes: 
1. The efficiency of each square kilometer, for the purpose of 
production and human settlement must increase. 2. The 
productivity of labor in the process of production must increase. 
3. The material living standard per capita and household, in 
terms of a market basket, must increase. 
If these parameters are followed, we realize that the average 
square unit of territory required to maintain a person, is being 
reduced, while, at the same time, the required material 
consumption increases. 
In the case of continuous physical productivity of labor and the 
related increase in the per capita consumption, the following 
tendencies occur: 
4. The energy throughput per square kilometer and per capita must 
5. The efficiency per square unit in the production process must 
tend to increase. 
With these improvements in physical economy there is also a 
change in the social characteristics: 
6. The relation of the urban to the rural population increases 
until it apparently asymptotically reaches an upper level. 7. 
The ratio of those employed in the production of capital goods 
increases, as compared to those producing for household 
consumption and related goods. 
These changes occur in such a way, that the production of 
agricultural and household goods for consumption never decreases, 
but increases per square kilometer and per capita. Under these 
conditions the following demographic changes will result: 
8. The age of the maturity of the individual before entering the 
workforce increases. 9. There is a shift away from 
labor-intensive, towards energy-intensive types of employment. 
All these preconditions must be fulfilled and maximized at the 
same time. Together, they illustrate the connection between 
technological progress and the increase in the potential 
population density. Even among countries with different levels of 
development, they give a guideline for the direction in which 
society should go. 
For obvious reasons, the New Eurasian Landbridge, as the 
cornerstone for a global reconstruction of the world economy, 
emphatically including Africa and Ibero-America, must be the 
concrete framework for the principles mentioned above. All 
participating sovereign nations should not only agree that 
building the Landbridge is in their common interest. In addition, 
these nations should also agree that the application of the 
principles mentioned above, is not only in their own best 
interest, but it is also in their own best interests, that all 
other sovereign nations also apply them. In this case, peaceful 
cooperation for each others' mutual benefit, is guaranteed. 
Already in the 15th century, Nikolaus von Kues recognized, that 
the discovery of every new science, and all progress in 
scientific knowledge, was so precious for mankind, that each 
nation should have immediately access to it, in order to 
facilitate its development. He suggested, therefore, some kind of 
international pool, into which all discoveries should be 
transferred, so that every nation could have access to it. This 
beautiful rejection of technological apartheid, should be adopted 
for the just New Word Economic Order. 
This program of global reconstruction for the benefit of all 
nations on this planet will only be successful, if it would be 
combined with a new cultural and moral renaissance. If one 
studies the Arab Renaissance of the 8th century, the 
neo-Confucian Renaissance of the 12th century, the Italian 
Renaissance of the 15th century, and the German Classical period 
at the end of the 18th and the beginning of the 19th centuries, 
one sees that they always return to the best of what mankind had 
produced up to this point, in order then to create something new 
and superior out of that rich heritage. Thus, the pathway to the 
future is also clear for us today. 
We simply have to take the best, of what Chinese, European and 
other cultures contributed to universal history, and let our own 
culture, enriched though the genius of the others, come back to 
us and inspire us to contribute to a new golden age of mankind.