Areas of Practice

THE ECLIPSE OF CAPITALISM? NEW VISION OF MARKET ECONOMY IN A NEW ERA OF GLOBALISED FINANCIAL INTER- DEPENDENCE

By Evros Evripidou
LL.B., LL.M., D.Sh. Law (University College London)
Barrister -at -Law (Middle Temple)

The inability of the system to withstand failure of some of its prominent financial institutions leading to massive bailing out through state intervention has dealt a serious blow to a vision the free world has cherished for years.


The market economy has worked so well and survived for so long that it would take a genius to be able to destroy it. Robert Jenkins, Chairman of the IMA, brave voice in the wilderness of capitalism idolatry said referring to the bankers. “These people created the problem, then denied it existed, then projected its quick resolution, then begged regulators for help …” But Mr. Jenkins was far too lenient saying “capitalism cannot succeed unless capitalists are allowed to fail”. We beg to disagree. Capitalism may not have the luxury of failing once again. The spending of hundreds of billions of tax payers’ money has not as yet proved enough and may not prove so in the future to restore investor/depositor confidence the lifeblood of banking.

 

Those conceived to be the protagonists of the de-railing of the world economy must account for the events leading up to and including the crisis in the markets, must justify their acts or omissions or defend themselves in front of an International Committee of Investigation.

 

In a free society we must feel safe to stand up and be counted. We cannot be impartial between right and wrong. We have all witnessed events repugnant to the ethics of free society. It is within the realm of possibility that those who caused a downward spiral in the economy were ill- prompted in reckless disregard to the interests of investors.

 

In the operation manual of every single tiny tax haven purporting to exercise elementary supervision on financial services compliance requirements exist such as conduct of business with integrity and honesty, exercise of skill care and diligence, proper management, effective grip on affairs, safeguards for market abuse, organizing affairs with prudence. How far fetched is it for “these people” to have violated one or more of
the principles outlined in the manuals of not only the most strictly regulated financial markets but also of the so called tax paradises remains to be seen once such an International Committee of Investigation is set up.

 

Public morale must be lifted and investor confidence must be restored. Caesar’s wife must be seen to be honest. We must perform a face-lift on the traditional values of free economy to turn them from static to dynamic. We all have a role to play in the building of a new vision of market economy we can all share with pride and confidence in a new era that the whole world may stand or fall together.

 

Go back »