A Food-based Financial System for Sustainable Development

www.anlac.com. Members of Anlac can use trade credits instead of cash to do business among themselves.

JA: What exactly is wrong with the existing monetary world order, which you would like to replace with the non-interest, food-based financial system? And how will this new system work?

JT: The world’s preeminent monetary system since the collapse of the Bretton Woods system in 1971 has been fiat money. This is essentially a nation's paper currency, which has no intrinsic value and is not backed by any physical commodity such as gold. Such a system is bound to fail. While fiat monetary system eliminates the liquidity problem of the Bretton Woods system, it is susceptible to volatilities as seen in the 2007/2008 global financial meltdown. Under fiat money, people can wake up to find the value of assets they invested in has wiped out due to a market crash, or the value of their savings lost due to hyperinflation.

Moreover, all religions forbid collection of interest, which is a sister of fiat money. However, our system requires organic food to be produced for every digital dollar that is created. The system allows for loans to be given to individuals and organizations. However, instead of repaying the loans with interests, the loans are repaid with storable organic food using our smart phone app. Also, an important aspect of this system is that the food remains in the country.

JA: What are the merits of the monetary / financial order you are advocating, and why should it be a replacement of the existing system, instead of being part of the disruption in the monetary system which has seen the introduction of digital currencies and digital payment?

JT: The biggest advantage is that the wealth of Africa never gets to leave the continent. There will never be a liquidity problem. The organic foods get to stay on the farms, greenhouses, pantries and storehouses until they are needed. This food base can then be used to purchase locally produced items from traders in the Anlac group.

The other merits of the food-based monetary system is that it does not have room for corruption and other illicit activities – the main channels through which considerable amounts of Africa’s wealth and resources have been illegally taken out of the continent.

JA: What is your operation like in Nigeria and elsewhere in Africa?

JT: We have members in Nigeria and other nations in Africa working in various sectors, including organic food, solar energy, oil, real estate, finance, marketing, mining, and nonprofits. Our goal is to create a sustainable corridor running from Lagos to Cairo and through Maputo to Rabat. The trade corridor will leverage local funds, local labour, and local materials.

JA: Your themes broadly support the global agenda for sustainable development. However, what areas are critical for Nigeria to focus on in the very diverse areas of advocacy for sustainable development?

JT: Sustainability encompasses food security, clean energy, industrialisation, innovation, among other goals. Encouraging individuals and organisations to develop sustainable businesses is necessary to achieving the Sustainable Development Goals (SDGs) in Nigeria. To start with, there has to be innovations in Nigeria’s agricultural development systems to feed the fast-growing population. The country also needs to adopt more sustainable manufacturing processes such as additive manufacturing or 3D printing. 3D printing has been identified as a valuable way of making manufacturing more sustainable. It increases efficiency and reduces waste.

With the vast amount of sunshine in the country, innovations in solar energy technology in the country would accelerate efforts to bridge the country’s energy deficit.

JA: How can the Nigerian and African media better support the propagation of your advocacy at Anlac, as well as the broader issues of sustainability?

JY: The country needs to promote and support the production and consumption of organic food, improve investment in solar energy and 3D printing. There is also a need for government and businesses to place more emphasis on sustainability, integrating SDG goals at every level of government and across the business enterprises.