The Values required for Capitalism | Enlightened self interest – Tony Blair
The Values Behind Market Capitalism
Tony Blair, Stephen Green, Indra Nooyi, Shimon Peres, James J. Schiro, Jim Wallis with Maria Ramos
Tony Blair – introductory remarks on the Values of Capitalism
- tendency to want to staate at this conference – “The End of Capitalism”
- it is normal and intelligent to reflect on the system
- New world, but we have been taught old lesson – that values matter
- we will build new regulation that will solve for the last crisis because that is what we do
- Old lesson was enlightened self interest, sense of long tgerm value, transparency – financial system at the service of the wider economy, and society. Old lesson that we have re-learned again
- free enterprise has not failed – financial system has failed
- The concept that the wider interest is as essential as the narrower shareholder interest – enlightened self interest
- This ciris is global in nature – this is new and not seen in earlier crises
- globalisation has moved ahead of the capacity of the political system to manage
- it would be bizarre to speak about the G8 – in the space of a few months the G8 is unthinkable unless broader membership
- important – getting the right strategic relationship between US and China – big challenge for US administration
- 2nd thought: increased globally – shared purpose and shared values
- need enlightened self interest
- we need stakeholder capitalism – wider interest – not narrow shareholder interest
- important – getting the right strategic relationship between US and China – big challenge for US administration
- 2nd thought: increased globally – shared purpose and shared values
- need enlightened self interest
- we require shared purpose and shared values including justice
- Africa is important is not just about Africa – it is an essential expression of our belief on the global community
- revive a concept of free enterprise that has enlightened self interest and stakeholder broader view of success
- target would be a prosperous and just world
Stephen Green, Chairman HSBC
- How do we deal with the incentives in the system that do not addess the ;points raised by Tony
- the system allows the value of a transaction to be the only measure
- need to overhaul the regulatory environment, Basel2, Accounting – but no amount of rules will enforce good behaviour. Rules will not institute values.
- sustained economic development in the world requires an international capital market system
- need profit growth, but we need to think about the broader responsibilities
- translates into compensation issues
- things will not bounce back to the way things were – need to bounce to something
Theme: Capitalism is required, and well functionaling international markets are rewquired. Regulation in and of itself is not adequate to provide for the riht kind of system.
