Capitalism at the Crossroads: Challenges and Opportunities

The End Of Capitalism?

After a series of financial crisis, stability of the financial system was shaken and our belief in capitalism is indeed at a crossroads. The western world and its economy seem to came under fire in midst of emerging risks, terrorist attacks and protests against globalization. While we are talking about sustainability and chasing after new technologies, it is no easy task for enterprises to identify the path to future growth. How are entrepreneurs going to take on challenges and move forward in this tidal wave of change? Jointly with the Consulate General of Switzerland, HKU SPACE College of Business and Finance organized a professional seminar: “Capitalism at the Crossroads: Challenges and Opportunities” on 19 May 2011.

Dr Katja Gentinetta, author and consultant for economic and social issues, was invited to share her ideas and insights. Katja Gentinetta holds a Ph.D. in political philosophy from the University of Zurich. She completed her studies in Zurich, Paris, Salzburg and Harvard. In her professional career she has held various leading positions in the public and private sector, most recently as Deputy Director of the leading liberal think tank of Switzerland, Avenir Suisse.

Rebalancing Forces To Restore Confidence

Dr C.F. Lee, Director of HKU SPACE, gave an opening speech welcoming the speakers and participants. He mentioned that the roads and the delicate balance between the market and the state, between individual responsibility and social security, and the need between growth and sustainability, are indeed core elements to establish a mutually beneficial world. Dr Lee also pointed out, “Hong Kong is in fact at a crossroads too. That is why we are looking forward to Dr Gentinetta’s sharing on how to appreciate each rebalancing forces that is necessary to restore confidence in the post-financial crisis market.”

Spokesperson from the Consulate General of Switzerland then delivered an opening speech, in which she regarded Hong Kong as the “Heart of Asia”. She also admitted that there are lots of similarities between Hong Kong and Switzerland, in that business science and technology is a focus for both.

Lessons Not To Be Forgotten

At the beginning of her speech, Dr Gentinetta commented that after the financial crisis in 2009, intellectuals all over the world speculated the end of capitalism, some even waited for its death. But now two years have passed, things turned optimistic with the strong market growth in China. She said, “Switzerland is doing well to come out of the crisis. Europe is coping quite well too. Nobody is talking about the end of capitalism anymore.” She also pointed out that we might be over the worst and the lessons learned should never be forgotten, for these may help to make a more fruitful future.

According to Dr Gentinetta, capitalism is built upon the aggregate efforts of everyone. It is a set of principles and instead of accusing capitalism as the cause of the meltdown, we should think and rethink about the responsibilities of businesses as well as individuals. Capitalism may be described as:

• the action to take risks and to make profit
• a way of life in which people are enjoying the freedom to choose
• a way of life in which people should take up responsibilities
• a promise of better life

Perversion Of Human Principle

Dr Gentinetta also talked about “borrowing capitalism” which encouraged people to live on money that they have not yet earned. A culture of “enjoy now, pay later” is generated thereby. The bailout of collapsing enterprises also brought forth a new set of principles where everyone is relying on somebody else. She regarded this as a perversion of human principle. “Freedom without responsibility is a careless act.” She said.

To conclude, Dr Gentinetta reiterated that it is imperative to hold businesses and individuals accountable for every risk-taking action. Let us hope that we can at least get benefits from the past and work together towards a sustainable development NOT at the expense of others.