In celebration of its 22nd year, the Foundation for Economic Freedom (FEF), will host its 3rd Paderanga-Varela Memorial Lecture entitled “Capitalism and Inclusion Under Weak Institutions” with main speaker National Scientist Dr. Raul Fabella.
For this year’s Lecture, Dr. Fabella will tackle capitalism in developing countries – the central problem of weak institutions and their effect on Philippine economic development.
Capitalism has been criticized since the 2008 Global Financial Crisis. One economist, Thomas Pikkety, recently attacked capitalism and inclusion in the US and Europe. In his book Capital in the Twenty-First Century (2013), Piketty finds that income and wealth inequality increases in mature economies. He suggests higher wealth and income taxation to help reduce inequality.
Though rising inequality is a problem in mature economies, policymakers in developing countries should focus on reducing extreme poverty.
In his book Capitalism and Inclusion under Weak Institutions, Dr. Fabella points to China’s experience under Deng Xiaoping. China has reduced poverty from 64% in 1990 to 4% in 2015. He notes, however, that China is a strong state with strong institutions and strong rule enforcement.
On the other hand, Fabella states that a weak state fails to exhibit collective action that result in poor delivery of public goods. This is often the case in developing countries. Conglomerates engaging in “conglopolistic competition” may have a positive role in addressing collective action problems.
Also to join the discussion are President and CEO of Clairmont Group, Eduardo Yap; UP Political Science Professor Amado Mendoza; and Victor Andres Manhit, CEO and Managing Director of Stratbase Group.
FEF’s memorial lecture is in honor of its two late co-founders – Dr. Cayetano Paderanga Jr., former Socio-Economic Planning Secretary, and Francis Varela, former Education Undersecretary.
The Lecture will be held on October 24, 2018, at Dusit Thani Hotel, Makati City.
FEF is a public advocacy organization dedicated to advancing market-friendly reforms, well-defined and secure property rights, consumer welfare, and good governance.
For more information about the event, visit https://www.fef.org.ph/projects/paderanga-varela-memorial-lecture-2/2018-paderanga-varela-memorial-lecture/
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