The purpose of this paper is to highlight the serious limitations of neo‐liberal capitalism and urge for a shift to socialized capital before further economic deterioration leads to a succession of global conflicts.
This conceptual paper adopts a macro perspective in presenting argument on how global, financial markets integration and capital flow liberalization have led to inadequate market and corporate governance measures. The argument is couched in a selected literature and is preceded by a proposed solution – the requirement for socialized capital. An analysis of the nature of socialized capital is outlined and the questions that require attention identified if a paradigm shift from neo‐liberal capitalism is to take place.
The need to urgently shift to a new philosophy of capitalism is overwhelming. Emphasized is that capital needs to adopt a socialised identity and is supported by investment horizons of 30 years or more. It is argued that non‐market (e.g. state, NGOs, civil society) intervention is critical in setting appropriate frameworks within which socialized capital can operate.
This is a theoretical paper, in which questions are raised which require transparent, public debate.
The paper presents the case for a fundamental reconsideration of present day markets, the role of capital and the influence of elites in determining the public good.
