MANILA, Philippines – A way out of the global financial crisis is to put money out of speculation and into actual production, social movements belonging to the Asia-Europe People?s Forum (AEPF) said.

In an interview with INQUIRER.net, Charles Santiago, Member of Parliament of Malaysia and AEPF coordinator for Asia, said 80 percent of the money is in speculation – in stock and future markets for oil, metals, and other commodities, and even currencies themselves.

“The markets are no longer logical. Money should follow the productive sectors and promote production,” he said.

Increasing money in actual production to at least 30 percent would make the global economy more sustainable, Santiago added.

The current rate of money in speculation “makes us highly vulnerable,” he said, proposing that the world economy must be put under control “to address the concerns of companies and people.”

“Markets want certainty. Right now, the markets are like a yoyo. It’s a senseless monitoring of the markets every day. The situation must not be what it is now: we gain for one year, and then lose for the five years,” he said.

At the same time, he said, the international community “must agree to distribute surplus equitably among international sectors,” he said.

And instead of relying on foreign investments, Santiago said, countries –especially developing nations – must invest in local industries to spur domestic-led growth.

In the face of climate change crises, Santiago said governments must encourage the development of new skills for eco-friendly, low-carbon industries as in recycling, solar panels, and renewable energy.

In discussions prior to the October 2010 AEPF-8, which is the parallel people’s gathering to the biennial heads of states’ Eighth Asia-Europe Meeting (ASEM-8) in Brussels, civil society groups in Asia urged decision-makers to re-think their assumptions and actions.

AEPF’s Santiago noted that the trillions of dollars in stimulus packages are running out and while governments are deliberating on new ones to stave off the inevitable collapse of the world economy, they should also question their assumptions about the neo-liberal system itself.