Is Capitalism Inherently Corrupt?
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President Mahmoud Ahmadinejad points to capitalism as the main source of global corruption. As well as the dominance of the dollar in world markets. The Iranian president criticized the unjust global economic systems in the world saying,
President Mahmoud Ahmadinejad points to capitalism as the main source of global corruption. As well as the dominance of the dollar in world markets. The Iranian president criticized the unjust global economic systems in the world saying,
[quote] “If an independent country wants to get a one-billion-dollar loan from the world’s financial centers, it should wait for many years and can obtain the loan only after meeting certain conditions. However, those centers offer loans of 50 and 100 billion dollars to their friendly and allied countries without imposing any condition on them.” [/quote]The President commented during a meeting with directors of anti-corruption establishments of the Economic Cooperation Organization (ECO):
[quote] “Capitalism and the capitalists, who are ruling over the world, are the main source of corruption prevailing in the world. And campaigning against them, with the aim of restoring the legitimate but trampled rights of nations, is a universal duty and mission” [/quote]
Related Article: Capitalist Economy
The main problem facing the human society is the fact that unvirtuous and corrupt rulers are running the world’s main political and economic centers, he observed.
Ahmadinejad added, “Unvirtuous persons become a main source of corruption and oppression wherever they gain power. Therefore, currently, one of (our) important missions is to help prevent such persons from coming to power.”
In conclusion, Ahmadinejad said that the member states of ECO should work hand in hand to help root out the phenomenon of corruption.
The Iranian President makes a good point. Capitalists are the ones who fear free markets after all.
In a story by the NY Times, Floyd Norries writes;
Capitalism is supposed to produce losses on bad investments. But all to often it has not.
In “free-market-based capitalism”, lenders and shareholders monitor the risks taken by companies – so companies benefit when they prosper and suffer if they fail.
But Yasuchika Hasgawa, CEO of Takeda Pharmaceutical Company says he “cannot help but question how this country’s democracy can be made to work with free-market-based capitalism.”
His definition of “free-market-based capitalism”: lenders should escape without pain, at least if they are lending to major institutions.
Related Article: Free Market Economy
Even the president of Japan’s largest bank, Mitsubishi UFJ Financial, was shocked by the very idea that a bank should lose money if it lent to a company that could not meet its obligations.
It seems unregulated capitalism may be inherently corrupt. After all, it seems the key players in the capitalist economy are corrupt. Can they be kept in check through effective regulation as Iranian President Ahmadinejad hopes?
Check out the Corruption Perceptions Index, new on the EconomyWatch.com Economic Statistics Database.
