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LaRouche On The Record:
A New, Just, International Economic Order
1985-1994

September 2014

Lyndon LaRouche has provided the intellectual leadership for over four decades in the fight for a new international economic order.

For over four decades, American physical economist Lyndon H. LaRouche, Jr. has provided the intellectual and political leadership in the fight for a new international economic order for the planet, for the purpose of ending the historic imperial control of monetarism and unleashing mankind's creative powers as a species. We have divided this lengthy history into four section, by decade, and we include links from the both text and the graphics to the original documents, for you to study.

EIR Magazine’s abridged printable version
can be found
here

1975-1984      1985-1994

1995-2004      2005-2014

The profound impact of LaRouche's intellectual leadership is clearly reflected in the current actions being taken by the BRICS nations and others to create a new global financial architecture and strategic alliance among nations, with the recent establishment of the New Development Bank (NDB) and related developments.

A partial timeline of LaRouche's role in leading the fight for a new international economic order is chronicled below:

1985: Helga LaRouche: 'Indira Gandhi Memorial Summit' for a New Economic Order


On January 15, 1985 the Schiller Institute organizes a 10,000 person 'March For The Inalienable Rights of Man' in Washington, D.C. for the creation of a new international economic order.

On January 15, Helga Zepp-LaRouche addresses a 10,00 person 'March For The Inalienable Rights of Man' in Washington, D.C. organized by the Schiller Institute in honor of Martin Luther King, Jr.'s birthday, to call for the convening of an Indira Gandhi Memorial Summit between debtor and creditor nations "to implement a rapid program for massive debt renegotiation for a new, just world economic order." Helga LaRouche told the rally: "We have created a new movement, a movement for the Inalienable Rights of Man, for all people on our planet; and we will not stop fighting until a new, just world economic order has been created... I have a dream today that all men shall become brothers."

Schiller Institute Conference in Rome: A New Just World Economic Order


Helga Zepp-LaRouche addresses a November 1985 conference of the Schiller Institute in Rome, 'Saint Augustine, Father of European and African Civilization.'

At a conference in November attended by 800 people sponsored by the Schiller Institute in Rome, Italy, Helga Zepp LaRouche delivers the keynote titled "The New Just World Economic Order: Humanity's Only Chance for Survival," stating: "Only when we take the highest ideal of humanity as the point of departure for our efforts, will we be able to have a just world order based upon a community of national sovereign republics, progress among all peoples, and thus, peace."

The conference is also addressed by numerous political, religious, and scientific leaders from Europe, Africa, South American, and the United States, who adopt a resolution addressed to Pope John Paul II, stating: "The Schiller Institute, gathered in Rome to celebrate the 1,600th anniversary of the conversion to Christianity of St. Augustine, the father of European and African civilization, sends greetings to His Holiness Pope John Paul II, requesting him to continue to exercise his religious leadership and moral authority in the present crisis of humanity to cast out the forces of usury and to favor the creation of a just New World Economic Order for all nations."

1986: LaRouche Publishes Program for 'The Integration of Ibero-America'


A book-length Spanish-language report published by the Schiller Institute, serialized in English by Executive Intelligence Review.

In 1986, the LaRouche movement publishes a 340-page book-length special report in Spanish, named La Integración lbero-Americana as an elaboration of LaRouche's Operation Juárez, specifying great projects for the development the continent, including the construction of a interoceanic sea-level 'Second Panama Canal' [PDF]. The introduction of the book states: "During the Malvinas War, in May 1982, U. S. economist Lyndon H. LaRouche, Jr. traveled to Mexico to meet with President Jose Lopez Portillo and other important political leaders. Some of them asked him to write out his proposal for dealing with the problem of the foreign debt. Three months later, the historic essay Operation Juárez was published, in which LaRouche takes up the old integrationist idea, and poses the necessity of immediately forming a Debtors' Club and an Ibero-American Common Market... This book intends as its primary purpose to contribute to the realization of that longed-for integration, demonstrating both the feasibility and the conceptual grounding for the Ibero-American Common Market. Its more detailed elaboration will be the task of that successful integrationist movement that we also seek to awaken and consolidate."

1987: LaRouche Forecasts October 'Black Monday' Stock Market Crash


LaRouche forecasts a global financial crisis in October 1987 as a result of the failure to adopt his 'Operation Juárez' program.

In May 1987, Lyndon LaRouche issues a press release titled "Global Financial Crisis Predicted For October" [PDF] in which he states that, under the conditions of "a continuation of the foolish international monetary policy" of the U.S. government," an October crash would be very probable." LaRouche identifies the IMF "conditionalities" regime under which debtor nations are forced to devalue their currency in order to obtain new lines of credit, "turning a poor debt-repayment possibility by these countries, into an impossible one, in each case." LaRouche states: "A 'zero-economic-growth mafia' inside the IMF and World Bank bureaucracies, acting with U.S. government support, has been collapsing the internal economies and world trade of both developing and Western industrialized nations, while piling up the financial obligations of both developing and industrialized nations. We have been increasing nations' obligations to pay debt, while destroying their means for paying that debt."


The Crash of 1987 occurred in October, as LaRouche had forecast earlier that year.

Precisely on schedule, on October 19 (now known as 'Black Monday'), stock markets across the planet crashed, with the Dow Jones losing almost a quarter of its value in a single day. LaRouche issues a statement titled "October Financial Crisis Happened On Schedule" [PDF] in which he situates the crash in the context of the failure to enact his Operation Juárez program: "During the spring of 1982 I warned the world that a 'debt bomb' was about to explode in Central and South America. I forecast the explosion to begin during the period of August and September that year. At the request of leaders of some nations of Central and South America, in June of that year, I wrote a detailed report, titled Operation Juárez, explaining the nature of the crisis, and detailing the measures which both these nations and the U.S. government must take... President L6pez Portillo acted as my Operation Juárez report specified. The world was saved for another month. The governments of Argentina and Brazil promised to support Mexico's policy, but both later broke that promise. The Reagan administration rejected my Operation Juarez option, and moved to crush and loot Mexico, and to proceed to loot every nation of Central and South America... For this five years, we have paid a terrible price. What could have been the easily manageable 'debt bomb' crisis of 1982, has been pyramided into the biggest financial crisis in history."

1988: LaRouche in Bretton Woods: "A New International Economic Order"


Lyndon LaRouche addresses Schiller Institute conference 'A New Just World Economic Order' held in Bretton Woods, New Hampshire in January 1988.

The Schiller Institute sponsors a conference in Bretton Woods, New Hampshire titled "A New Just World Economic Order: Development Is The Name For Peace" on January 30-31, 1988. In attendance is Frederick Wills, former Foreign Minister of Guyana, who delivers a speech titled "The History of the Fight for the New World Economic Order" [PDF] relating how he first became acquainted with Lyndon LaRouche and his idea for an International Development Bank. Wills declares: "It is time to return to the fundamental appreciation that money and monetary systems are the servants of humanity."


The proceedings of the Schiller Institute's 1988 conference were published in a book 'Development Is The Name For Peace.'

Helga LaRouche also spoke on "The Dignity of Man in a New World Economic Order," and Lyndon LaRouche delivered the keynote, titled "The Tasks of Establishing an Equitable New International Monetary Order" [PDF] in which he describes the history of his Operation Juárez proposal, and elaborates how the President of the United States can act to create a new international monetary system to replace the post-1971 Bretton Woods system: "As President, I would have most of the so-called "Third World" leaders meet, and settle immediately the question of restructuring and reorganization of debt. Once the United States government has entered into such an agreement with a group of developing nations on restructuring and reorganizing of their external debt, and expansion of their import capacity, and conditions of new volumes of loans for economic development, the rest of the world just has to go along with it. And, thus we would have, in effect, the basis for a new monetary system."

1988 Schiller Conference on the New Bretton Woods part 1 (YouTube video)

"The Development of Africa" by Lyndon H. LaRouche, Jr. Proceedings of the 1988 Schiller Institute Conference on the New Bretton Woods

LaRouche in Berlin Forecasts Reunification of Germany


LaRouche forecasts fall of Berlin Wall at press conference in West Berlin in 1988.

On October 12, 1988, Lyndon LaRouche delivers a press conference in West Berlin "on the subject of prospects for the reunification of Germany," asserting that "the world has now entered into what most agree is the end of an era. The state of the world as we have known it during the postwar period is ended." LaRouche stated: "The economy of the Soviet bloc is a terrible, and worsening failure... The Soviet bloc economy as a whole has reached the critical point, that, in its present form, it will continue to slide downhill from here on." Therefore, LaRouche said, "the time has come for early steps toward the re-unification of Germany, with the obvious prospect that Berlin might resume its role as the capital."

LaRouche elaborated a program for the cooperative development of Eastern Europe as an engine for creating a new economic system: "Let us say that the United States and Western Europe will cooperate to accomplish the successful rebuilding of the economy of Poland. There will be no interference in the political system of government, but only a kind of Marshall Plan aid to rebuild Poland's industry and agriculture. If Germany agrees to this, let a process aimed at the reunification of the economies of Germany begin, and let this be the punctum saliens for Western cooperation in assisting the rebuilding of the economy of Poland."

1989: The Fall of Berlin Wall Presents Opportunity for New Era


The fall of the Berlin Wall on November 9, 1989.

Within one year of LaRouche's forecast of the coming reunification of Germany, mass demonstrations in Leipzig and other cities in East Germany lead to the lifting of emigration restrictions for people wishing to leave the G.D.R. on November 9, 1989. Numerous border crossings are opened, including the Berlin Wall, thus marking the end of the 'Iron Curtain' division between East and West. The East German state is officially dissolved on October 2, with an official celebration featuring Ludwig van Beethoven's Ninth Symphony in the Schauspielhaus in the former east sector of Berlin.


Lyndon LaRouche's proposed 'Productive Triangle' development plan for Europe.

Lyndon LaRouche immediately commissions a policy study to elaborate his proposals from the previous year to use the modernization of Eastern Europe as the "locomotive" for the economic development of Eurasia. The concept takes the form of the "Productive Triangle" linking together Paris, Berlin, and Vienna through high-speed rail, thus creating an integrated high-density 320,000 square-kilometer industrial development zone, spiraling out into eastern Europe via transport, energy, and communication development corridors. LaRouche elaborates the proposal in a policy paper composed the following year, "The Economic Development of Eastern Europe" [PDF] in which he counterposes his 'Productive Triangle' program for development to the shock therapy plan, which he asserts is merely a different form of the same model of 'primitive accumulation' that brought down the Soviet state.

A 1989 video complement to Lyndon LaRouche's autobiography, The Power of Reason: 1988

1990: Helga LaRouche Initiates International Campaign for 'Productive Triangle'


Schiller Institute special report in German, 'The Productive Triangle: Paris-Berlin-Vienna - Locomotive for the World Economy.'

Special reports on LaRouche's 'Productive Triangle' program are published in every major European language, and Helga Zepp-LaRouche launches an aggressive speaking tour campaign throughout Europe, addressing conferences in numerous capitals including in many Warsaw Pact and other Soviet countries newly gaining their independence, including Hungary and Poland, while representatives of the Schiller Institute host seminars on LaRouche's program across eastern Europe, including in Czechoslovakia, Belarus, and Ukraine, as well as nearly every country in Western Europe.

Helga LaRouche issues a statement in which she says Germany has the opportunity to function as the locomotive for the world economy, both of the East and "above all for the development of the Southern Hemisphere," finally rising to the moral challenge of realizing a new, just world economic order:


Helga LaRouche addresses an international conference titled 'The Coming Renaissance of Europe' held in Germany in April 1990.

"Germany, the heart of Europe, must be the locomotive which raises the economic development of the whole of Europe to a qualitatively new level. The program of the 'Productive Triangle,' proposed by the U.S. economic scientist Lyndon LaRouche, is the crucial key to this. A high-speed rail system will not only connect the Paris-Berlin-Vienna triangle, but, simultaneously, will enclose a region with the greatest immediate growth potential, as far as industrial and labor capacities are concerned. The rapid expansion of infrastructure and, especially of a productive Mittelstand in industry and agriculture can initiate a new economic miracle here, which, through new industrial corridors, will soon be able to reach the whole of Eastern Europe, the not-so-developed regions of Western Europe, and also the Soviet Union. The great expanse of Europe, with the "Productive Triangle" as its core, will make possible such a great increase in productivity and in the output of capital goods, that it will function as the locomotive for the world economy - not only for the infrastructure and industrial development of the East, but above all for the development of the Southern Hemisphere. Our answer to this question of whether we will finally develop the countries of the so-called Third World, will decide ultimately whether or not we meet the great moral challenge of the twentieth century... It has to become the identity of a sovereign Germany, that it is the place from which emanates the practical realization of a new, just world economic order."

1991: Schiller Institute: Productive Triangle Cornerstone of New Economic Order


Maps of the 'Productive Triangle' concept, including radiating vectors of development into Eastern and Southern Europe.

In March 1991, the Schiller Institute convenes a conference in Berlin on the 'Productive Triangle' program, attended by representatives from numerous newly independent eastern European nations, including Hungary, Czechoslovakia, Poland, Latvia, Lithuania, Russia, Armenia, Bulgaria, and Croatia. In a message to the conference, Lyndon LaRouche calls for "a sphere of cooperation for mutual benefit among sovereign states" to united Eurasia. The conference adopts a resolution, the 'Berlin Declaration,' which calls for the nations of Europe to seize the "unique historical opportunity" presented by the end of the disappearance of the Iron Curtain, and states: "We strive for a just, new economic order, which secures peace, in that all peoples are given the same opportunities for economic and social development. For, development is the name for peace."

1992: Productive Triangle Concept Extended to 'Eurasian Landbridge'


The 'Productive Triangle' is expanded to encompass Eurasia as a whole with three development corridor routes spanning the continent through Russia & China.

Following the official dissolution of the Soviet Union, Lyndon LaRouche expanded the concept of the 'Productive Triangle' to include the former Soviet territories in Russia and central Asia, stretching all the way to the Pacific coast of China. This proposal, which became known as the 'Eurasian Landbridge,' concentrated on three 'development corridors' spanning the Eurasian continent: a northern route via the Trans-Siberian Railroad to Vladivostok; a central route through Ukraine, Kazakhstan, and China; and southern route from Western Europe to China through Turkey and Iran. This plan would economically integrate the Eurasian continent, maximizing the productive potential of its territory and peoples for the common benefit of all, and resolving the artificially imposed strategic divisions among the great powers through the promotion of development in their mutual interest.


In 1992, EIR magazine publishes a report calling for an alliance for development among Eurasian nations as the foundation for a 'new economic and monetary order' for the planet following the collapse of the Soviet Union.

Executive Intelligence Review publishes a feature-length study elaborating this "integrated Eurasian development network stretching from the Atlantic to the Pacific," stressing that it will serve as the centerpiece and foundation for creating "an alliance of nations committed to a common programmatic perspective for establishing a just world economic order." This new economic and monetary order would be comprised of a "community of interest among sovereign nations committed to rapid economic development" to replace the failed financial systems of both East and West, bridging the rich and diverse cultures of the Eurasian continent and ending to the legacy of the geopolitical "Great Game" policy of perpetual war.

Helga Zepp-LaRouche states that the world is experiencing the opportunity for "the beginning of a new more hopeful time and the emergence of a new, just world economic order" and issues a call for a peaceful revolution to establish an "International Coalition for Peace and Development" [PDF].

Publication of Russian-Language Edition of LaRouche's Economics Textbook


Dr. Taras Muranivksy co-chaired the first-ever Schiller Institute conference in Moscow titled 'Alternative Approaches to Economic Reform' in October 1992.

The Schiller Institute sponsors its first-ever conference in Russia, on October 30-31 in Moscow to announce the release of a Russian-language edition of LaRouche's textbook on physical economy, So You Wish To Learn All About Economics? [PDF]. With Russia undergoing the disastrous effects of the IMF "shock therapy" policy, the conference is titled "Alternative Approaches to Economic Reform," focusing on LaRouche's proposals for a rapid reconstruction of the Russian economy by means of the Productive Triangle/Eurasian Landbridge program. The conference, held at the Russian State Humanitarian University, is attended by over 50 individuals representing leading political and academic institutions within Russia, and is co-chaired by Dr. Professor Taras Muranivsky, rector of the Ukrainian University in Moscow. Muranivsky delivers a speech about "establishing a new economic theory" based on LaRouche's ideas on the science of physical economy.


Various writings by LaRouche on physical economy published in several eastern European languages including Russian.

In the foreword for the Russian-language publication of his economics text, Lyndon LaRouche writes: 'The Russian edition of this textbook appears at the moment the greatest financial bubble in history is collapsing upon us. If we fail to take appropriate corrective action soon, this collapse could become the worst economic disaster in European history. Out of the wreckage of that monetary collapse, a new form of national economy must be constructed."

 

1994: Lyndon LaRouche Travels for First Time to Moscow, Russia


Lyndon LaRouche travels to Moscow for a series of lectures on economics during his first trip to Russia in 1994. Here LaRouche is pictured in front of the Kremlin.

In April 1994, Lyndon LaRouche travels to Russia for a week of meetings and speaking engagements in Moscow, together with his wife Helga. LaRouche's first public event is a lecture sponsored by the Ministry of Economics of the Russian Federation on April 25, where LaRouche states: "The problems in Russia are a reflection not of conditions internal to Russia, but the reflection of a collapse in the world economy... What is going to happen, without question, is a general total breakdown collapse of the global financial system... If there is an agreement on principles of sound economy, then there can be an agreement among states to reestablish, in a very short period of time, a new world financial and monetary system to replace the old one, while we put the old one into bankruptcy."


Lyndon LaRouche lectures on his science of physical economy at a seminar of Russian scientists in Moscow.

LaRouche also addressed seminars at three institutes of the Russian Academy of Sciences: the Institute on Scientific Information on Social Science (INION), the Institute of Oriental Studies, and the Africa Institute. At the INION, LaRouche stressed that the Russian intelligentsia must understand the collapse of the Soviet system was merely one part of a global process of collapse, caused by a general failure to abide by the fundamental laws of physical economics, which would doom the free-market system of the West as well: "You get a reflection of a failure to comprehend this problem, and a belief that the disease which is called free trade, is the superior alternative to communism. So instead of bowing to the statue of Karl Marx, you are now supposed to bow to the statues of Adam Smith and Ricardo. This tends to create an instinctive lack of appreciation for the fact that the entire global system is now about to collapse."


Lyndon LaRouche joined by Dr. Suslov and Dr. Kuznetsov, in dialogue on his principles of physical economy at the Economics Academy in Moscow.

Additionally, LaRouche was hosted by Dr. Pobisk Kuznetsov at a gathering of the "Prezident" group of approximately 60 academicians and other scientists [PDF]. Following LaRouche's visit, Kuznetsov published a report in the Russian journal Rossiya 2010 [PDF]in which he called for a new unit of measurement to be applied to physical economics, which he proposed be called 'the larouche,' or "La" for short: "Let us introduce the physical magnitude of 'a larouche,' designated by La, which gives the number of persons who can be fed from 1 square kilometer, or 100 hectares, during one year. Our base magnitude of area is 1 square kilometer or 100 hectares. This base value of area is necessary, in order to bring all existing world food statistics to a single basis. The figures cited above... correspond to 'potential relative population density,' introduced by LaRouche. We have introduced the new unit of measurement, the larouche, which is the quantity of persons able to be fed from a certain magnitude of area, taken as the unit value in this system... We share LaRouche's view that the magnitude of potential relative population density can serve as an indicator of 'intellectual culture,' but taking into account the quite diverse values for farv (photochemically active radiation per vegetative period), we shall compare not simply 100 hectares, but 100 hectares for a given local farv value."


LaRouche in dialogue with Russian economists at the Economics Academy of the Russian Ministry of Economics in Moscow.

Upon his return to Washington DC, LaRouche delivered a report on his trip to a meeting of diplomats and press [VIDEO], where he repeated what he had stated at the Ministry of Economics in Moscow, saying: "Have no doubt that the present global financial and monetary system is not only going to collapse, but is going to go into an absolute breakdown collapse, unless various governments, including the U.S. government, were to put the present monetary system into bankruptcy. That would stop the collapse, and nothing else will stop it. Therefore intelligent governments will consider nothing serious, except to make preparations for this collapse and to organize quickly a recovery of a new financial system and a new monetary order the instant the collapse occurs."