A New Challenge to S&G: Global Model Simulation

Abstract

The FUGI (Futures of Global Interdependence) global modeling system has been developed as a scientific policy modeling and future simulation tool of providing global information to the human society and finding out possibilities of policy coordination among countries in order to achieve sustainable development of the global economy co-existing on the planet Earth in the ever changing universe. The FUGI global model M200 classifies the world into 200 countries/regions where each national/regional model is globally interdependent. Each national/regional model has nine subsystems as population, foods, energy, environment, economic development, peace & security, human right, healthcare and quality of life (IT revolution). This is a super complex dynamic system model using integrated multidisciplinary systems analysis where number of structural equations is over 170.000. Economic model as a core includes major economic variables such as production of GDP, employment, expenditures of GDP, income distribution, prices, money, interest rates & financial assets, government finance, international balance of payments, international finance, foreign exchange rates and development indicators.

The purpose of this report is twofold, namely to provide information on a new frontier science of economics: global model simulation as a new seed for sustainable development of S&G as well as appropriate policy exercise for sustainable development of the interdependent global economy. The world economy is facing “green” energy revolution to change from fossil to create alternative energy and energy saving technology against sky rocketing higher oil prices. Japan takes a lead in this field of technology innovation. Under such circumstances, Japan should take an initiative to create a new peaceful world through not only harmonized adjustments of Japanese economic policy but also wise cosmic mind to promote human solidarity with the ever changing nature will be desirable to adjust orbit of the fluctuated global economy. Japan should challenge for a new strategy to accelerate economic growth rates by “C0₂ reducing environment investment” based on technology innovations.