In the 18th century a Scottish moral philosopher, Adam Smith became the pioneer of political economy and advocated for the “free market” and “the invisible hand” concepts while Ethics and Moral philosophy, a subject he taught at Edinburgh University were essential built-in ingredients in this new ideology.
In the first half of the 20th century, an English economist John M. Keynes advocated interventionist government policy. i.e., close monitoring (not controlling) of private business activities and the occasional use of fiscal and monetary measures to regulate the economic cycles for the benefit of all. Decades of prosperity along the Keynesian model characterized the economies of W. Europe and N. America after the 2nd world war.
The origins of today’s colossal worldwide financial crisis were born in Chicago University where an American Nobel Prize winner, Milton Friedman, originally a Keynesian in economic policies convictions started in the 60’s to preach ultra liberal theories, de-regulation, complete government hands-off and without any monitoring or intervention. He was undoubtedly inspired by the high risk American culture originated in the spirit of the conquest of the Wild West, by adventurous cow boys searching for gold within a legal vacuum.
In the 80’s a process set in motion by US President Ronald ...
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...he point accountability re Ethics violation will be introduced. The Ethics preached by Adam Smith and the government regulations preached by Keynes will be re-adopted. Milton Friedman theories will be abandoned. The American model, previously repudiated by French President Charles de Gaulle, by Prime Minister of Malaysia Mahathir Mohamad and other respectable political leaders in the world will not be anymore a source of inspiration. Globalization of the world economy will be now delayed further leaving way to more Regional economic cooperations in fiscal matters, with a stronger role of government institutions. This will mean that the concerns will shift to the classical threats that have traditionally plagued government institutions; Corruption and bureaucracy. Future economic growth in any country will depend on the extent these threats are successfully eliminated.
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