Milton Friedman, Capitalism and Freedom
Some lessons stand out (1) Neither democracy nor markets can flourish properly in the absence of a competent state. But such a state can produce many of the virtues of modernity without the benefits of either democracy or free markets. - Francis Fukuyama, ‘Political Order and Political Decay’ Democracy and pure capitalism may not be the answer after all
Some lessons stand out (2) – growth is possible without democracy The 2013 Pew Survey of Global Attitudes showed that 85% of Chinese were “very satisfied” with their country’s direction, compared with 31% of Americans. Russia China
Some lessons stand out (3) – Minimum conditions for a resilient business environment Importance of functional authority Ability to maintain law and order and to ensure the prevalence of the state’s laws and rules Importance of competent and stable institutions Rule of law, reasonable public infrastructure, functioning banking system, provision of basic services (education, health, water and transport) Importance of domestic political legitimacy of governing authorities Relatively free media, modicum of civil and political liberties, no exclusion of significant minorities from power and political process, tolerance of dissent Based on World Bank, Working Paper on “Addressing Authority and Legitimacy in Fragile States”
Next Week Continuation of Political, Economic & Legal Context (2) Emerging Markets
You've reached the end of your free preview.
Want to read all 55 pages?