Liberalism is not dead but we need to wake up to a new economic-financial model

 

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Like a boat that instead of floating in the sea is aground and full of water, that´s the way liberalism may be seen. A model that is not able to move forward, although keeping their structure and mission. Instead of moving through natural channels that globalization and the institutional setting are bringing, it has become stagnated and submitted to global and institutional crises. Liberalism is not ideologically responsible of current institutional   crisis as far-right leaders with an anti-globalist agenda are trying to defend.

However a liberal global model may be considered dead because of a general state of chaos: 1)‪ No transparent leaders 2) No accountability from governments 3) No respect to the Universal Declaration of Human rights. 4) No successful recovery from financial global crisis. 5) Increase of violence and a lost of focus in the relation with Middle East.

Is it precisely corruption and the preeminence of private interests accompanied with a relax regulation that has led the world into a global financial crisis. Is it here where liberal ideology needs to be adapted to a new model and be built through the accurate intervention of the State in conjunction with global institutions. Towards  a road to give  guarantees that assures minimum standards of ethics, transparency and accountability.

What has happened with Greece and the turbulent relationship with Troika shows that global institutions need to move forward towards a framework in which there is enough supervision and accountability over failures in policies and strategies. They have left Greece with now defenses and the invitation to get out from the European Union was just a manipulative act that shows the intention of “exploding the system” and go ahead with an anti-integrationist agenda that is also against an anti-liberal model. Greece was forced to apply austerity measures without any control over their local transparency and accountability mechanisms and without taking responsibility of this lack of control blaming Greece of all failures. In a moment of institutional crisis -as the European Union is currently going through- the standards and judgment of their decisions must be seen in transparent process and with different levels of accountability. So, a liberal model in a global context works if there are certain basic pillars that are fulfilled: transparent and accountable global and local institutions. In the end, globalization was built under a liberal economic model but under the dictatorship of private interests collapsing the entire financial system.

Is not fair to blame an economic model for failures derivate from their own institutions. United Nations need to play a stronger role and governments need to be under screening. Only trough institutions like the European Union or regional structures it could be achieved.

However this crises are being used to develop a far-right agenda that is not giving plausible alternatives but an “apartheid” going against the main principle of liberalism: freedom. Indeed is not possible to achieve national safeties without a global framework and by undermining free circulation of their citizens.

Set above freedom to equality as M. Friedman highlighted, works under different conditions where there are minimum standards of political, economic and financial stability. Currently there is not, and basic pillars are collapsing before our eyes: leaders, institutions and political class, hence, individual freedom is under threat.

There is a need to elaborate a new liberal model adapted to this negative conditions. The complexity of these elements makes also a complex solution able to combine a liberal political model with a welfare State economic-financial model. Is it not incompatible and history shows that they never had pure liberal models of government but the adaptation to realities and in the worst cases at the service of private interests.

This anarchic state of emergency that were are currently going through is allowing the set up of anti-globalist goals that search for the reduction of regulation and the strength of borders controls. A far-right agenda based on isolationism and xenophobia.Clearly at the service of financial private interests different from public interests. Brexit is an example having hedge funds as their main campaign donors.

 Part of that agenda is bombing global institutions and current status quo of integrationist, however under any circumstances represents the real solution in a world threatened by crises of different nature. Assign responsibility to a liberal model because of corruption, mismanagement or big private corporation´s interests is it just an excuse and is not a good oneBiased interests have nothing to do with ideologies.Financial crisis has as a first reason corruption and complicity from the political class and does not has ideological roots at all. In fact this crises are the product of a no implementation of a State of Law. So now were are facing the paradoxically situation that the no compliance of law is the argumentation for seeing the liberal model as a failure, when there are leaders, institutions and the entire system that is falling badly.

Liberalism is having wrong practitioners and bad practices, not wrong ideological goals

Welfare State and liberalism are not incompatibles particularly in crises moment where the individual sphere become vulnerable and attacked. Assuring individual guarantees under the framework of a Welfare State it is also a way to guarantee the correct implementation of a liberal model.

A Welfare State and a liberal model are not incompatibles if we are seeing it through the eyes of a traditional view but not under global standards and multiply crises. The confrontation between both models is because are been seeing in the contradictory mix of politics and finances. Is it here where relies the gap. The complementary is what will allow moving forward to an eclectic model that takes the best part of both. When leaders and institutions collapse there is only one possibility that is to assure minimum standards. Globalization needs to be used to print with transparency and accountability and reduce the negative impact from this super power that a 100% liberal model supposed. Indeed it has allowed the increase of inequality; undermining equal opportunities among their citizens hence threaten individual freedom.

 The main goal of a liberal model is to raise productivity, which is not been achieved. Is in this sense that the shift to a slightly interventionist State is it also in the interest of the preservation of a liberal model.: economic growth. Corruption generates unemployment and reduction of resources and could be only be prevented by an interventionist State.

Proposals from far-right agenda based on xenophobia, racism and anti-globalist positions are simply denying the reality. Their isolationist alternatives don’t bring the safety needed after the global financial crisis.

A Welfare State political model & Liberal economic-financial model makes an eclectic model in which we could rescue liberalism ideology and get control over a new financial international order. Integration is what brings the necessary controls -that was the hidden reason for a Brexit having hedge funds interests behind. Searching for less regulation their support the division with the EU-

Is a historical moment for joint action, more controls that assures more freedom by more integration, a transparent and accountable political class and stronger global institutions.Working towards a reshaped liberal model and less on anti-globalist positions that are not giving a clear and tangible alternative model.

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