introduced by Tito Boeri
For forty years, advanced countries, including the United States and those in the European Union, based their economic and social policies on a view of the economy—and of society—that places primary reliance on markets. Even before the pandemic, the deficiencies in that approach were apparent. Growth was slower than in earlier decades, and the fruits of that growth went overwhelmingly to the wealthiest people. The financial crisis of 2008 made it clear that markets were neither efficient nor stable. Then, the 2016 election of Donald Trump in the U.S. made it clear that this form of capitalism was not politically sustainable: The Republican Party, supposedly the party that believes in free markets, was taken over by a protectionist, nativist populist, who would do everything he could to undermine democracy and democratic institutions. Finally, three crises – climate change, inequality, and the pandemic – highlighted the importance of externalities and basic research and the role of the state in responding to crises. At the center of the world’s concerns were problems the market was incapable of handling on its own. This has set the stage for the post-neoliberal social and economic order. This talk will lay out some of the foundations of that order, and will delineate the role of the state, the relationship between the state and business organizations, and the richer ecology of institutional arrangements that are required to achieve societal well-being.