The thought of social good, the emotion of love for the human family and the consideration for the less fortunate brethren have little or no place in this system.
It is now almost universally recognized that the world economic situation, today, is very critical. The main cause of this crisis is that the present-day economic systems are divorced from ethics. Such economic systems do not take into consideration ethical values but also generate unethical trends. The current world fiscal scene clearly shows that our economic thinking and our models of planning and development are out-of-touch with reality and are estranged from ethics.
It is known to all students of economics that when the International Monetary System was first constituted, the parity of national currencies of the member countries was determined according to the value of the US$. So, their parities depended on the stability in the value of the US$. But, ever since the US dollar began vacillating, the system of parities has been upset. Now, in the system, as it stands, the domestic policies of individual major industrial countries, especially the USA, highly influence the policy of the developing countries. Thus the levers of power are now firmly in the hands of a few developed countries and they are often being used to the detriment of the developing countries, thus creating a crisis in those countries due to huge losses in foreign exchange suffered by those countries due to change in Dollar rates.
Further, we all know that there are presently two major economic systems at work — the Capitalist and the Communist. The former is based on competition, drive for profits and the law of value of the goods. The thought of social good, the emotion of love for the human family and the consideration for the less fortunate brethren have little or no place in this system. Thus, it is bound to reinforce the exploitative relationship between individuals and countries and to increase conflict. So far as the communist form of economy is concerned, it is often alleged that it is intensely repressive, materialistic, indeed soul-less. Its discipline is ruthless and it constitutes totalitarianism. In brief, the result of the present economic world order is that about three-fourths of mankind lives in poverty. The remedy thus lies in basing the world economic system on love, humanism, and social consideration. For this, there is the need that all countries commit to peaceful progress not only in their own lands but worldwide Global co-operation to restructure the international monetary system, basing it on the human relationship which is the need of the hour.