Sunday, June 8, 2014

Markets follow - they do not lead.

"First, we believed in the theology of development, only to see development founder on corruption and the incapacity of weak state structures to develop honest government and equitable programmes for growth.

"Then we told ourselves globalisation itself - capitalism's sheer voracious dynamism - would bring prosperity and order in its wake. But markets alone cannot create order: markets require order if they are to function efficiently, and the only reliable provider of order - law, procedure, safety and security - is the state.

"A globalised economy cannot function without this structure of authority and coercive power, and where it breaks down markets break down, and crime, chaos and terror take root in the rotten, unpoliced interstices.

"Prophets of the benefits of global market integration have been foolish enough to envisage a future world that does away with the need for the state. But large corporations will not patrol the street corners. They will not provide the schools, roads and hospitals that distinguish society from the jungle. Only states can provide these goods."

Michael Ignatieff
Empire Lite (2003)

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