Chronic limitations of neo-liberal capitalism and oligopolistic markets: an urgent case for socialized capital

Knyght, P. R., Kakabadse, N. K. ORCID: https://orcid.org/0000-0002-9517-8279, Kouzmin, A. and Kakabadse, A. ORCID: https://orcid.org/0000-0002-0031-7767 (2011) Chronic limitations of neo-liberal capitalism and oligopolistic markets: an urgent case for socialized capital. Society and Business Review, 6 (1). pp. 7-26. ISSN 1746-5680 doi: 10.1108/17465681111105805

Abstract/Summary

Purpose – The purpose of this paper is to highlight the serious limitations of neo-liberal capitalism and urge for a shift to socialized capital before further economic deterioration leads to a succession of global conflicts. Design/methodology/approach – This conceptual paper adopts a macro perspective in presenting argument on how global, financial markets integration and capital flow liberalization have led to inadequate market and corporate governance measures. The argument is couched in a selected literature and is preceded by a proposed solution – the requirement for socialized capital. An analysis of the nature of socialized capital is outlined and the questions that require attention identified if a paradigm shift from neo-liberal capitalism is to take place. Findings – The need to urgently shift to a new philosophy of capitalism is overwhelming. Emphasized is that capital needs to adopt a socialised identity and is supported by investment horizons of 30 years or more. It is argued that non-market (e.g. state, NGOs, civil society) intervention is critical in setting appropriate frameworks within which socialized capital can operate. Research limitations/implications – This is a theoretical paper, in which questions are raised which require transparent, public debate. Originality/value – The paper presents the case for a fundamental reconsideration of present day markets, the role of capital and the influence of elites in determining the public good.