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Towards a New Economic Model

 

Towards a New Economic Model

Written by Alfonso Elizondo

One of the main reasons that explain the long duration of the neoliberal model is that there is no real developing countries market. This is due to the fact that in any social institution there needs to be values, principles, regulations, behaviors and conditions of effective freedom, the ability to choose and the sovereignty of economic agents that are compatible with the principles of liberal rationality and competition.

The adjustment and regulation of the market is necessary when there are competitive failures that cause inequity and unjustified prejudices to develop between countries, citizens and agents – in economic and moral terms – based on socially accepted notions of justice.

In developing countries, the recurrence of economic crises, the problems of inequality, exclusion and the difficulty in achieving economic stability, sustained growth and entry into in the world market require adjustments to the current economic model and especially in terms of regard for social relevance within of the democratic regime.

Also required is the reform of the international financial system to deal with the international mobility of short-term capital and reduce the gap between powerful countries and countries of the Third World given that the very evolution of state capitalism will ultimately impose important changes on the management of globalization.

The evolution of capitalism in developed countries is affecting the relationship between capitalism and labor, not only at the level of production, but in the labor market, due to the mobility of labor nowadays and the new ways of providing service to companies through part-time, temporary work and outsourcing, plus some other work-related risks that were previously assumed by capital. In order to avoid the current great imbalance of forces between capital and labor, a new social contract is very urgently needed, one that is very different from the one created after World War II and in the US in particular.

In the case of Western Europe, neoliberal globalization inflicts serious contradictions and conflicts on the social order of the ‘benefactor’ State in the face of the demand to reduce direct labor costs and benefits to workers in order to improve competitiveness at an international level.

Arising from this type of challenge now faced by that the capitalist system, there is a need to think of alternative models for the management of globalization today and new systems with respect to market capitalism at the present time. This is in addition to the course that the economic, political and social order will take at the global level with the strengthening of information technology, the biogenetic revolution and the problems pertaining to humanity as a whole, such as universal human rights, the rights of living animals and environmental rights.

These could serve to shape a reflective and deliberative global consciousness to enable the holistic development of the human being.

Addendum: All these developments in the area of science, technology, anthropology, biology and the new cognitive and digital sciences lead us to think that we are just at the point where the human being will completely change his old way of being destructive, vengeful, filled with cruelty, Messianic and individualistic, and there will be a new world where the main positive features of human behavior will be quickly rekindled and the violence, cruelty and individualism that have plagued the human race since the beginning of the Neolithic Age, more than 20 centuries before Christ, will be eliminated forever.