Pro-market, not pro-business
Published by Yazad Jal June 30th, 2003 in Economics, GovernanceYes there is a difference. The anti globalisation Bidwais and Roys seem to think that promoting capitalism and globalisation simply means promoting businesses (especially corrupt businesses). Nothing could be farther from the truth. And being pro-market or pro-capitalism does not mean being pro-business–it means being pro-freedom. This recent article, part of the Economist’s “radical birthday thoughts” on it’s 160th anniversary argues forcefully on separating “CEO’s from state.”
The job of a chief executive is to make profits for his company and, no doubt, feather his own nest; it is not to make public policy—especially in his own industry, for that is where his selfish interests will be greatest. Inviting him to advise government, or listening to his views about promoting share options to help his industry, is sure to divert public policy to private ends. This is not the fault of executives or their companies; it is the fault of government.
Very true!
The Ambani’s and the Birla’s are the Indian capitalists, who have thrived by moulding public policy to suit their interests.
These are the type of people who thrive when business is not free of government encumberence.
Is it the flaw of capitalism? Definitely not!