Paul Collier: Social capitalism

Books that attempt to explain the current upheavals in our society and develop solutions to overcome them fill several shelves in bookshops. For me, “Social Capitalism” by Paul Collier stands out from this sea – and not just because of its unusual title.

For many years, the development economist, who teaches at Oxford, has studied the world’s poorest countries intensively and recognized a connection between poverty, war and migration. He has identified three major rifts that threaten to tear society apart in many countries: between developed and non-developed regions of the world, between well-educated elites and those on low incomes, and above all between metropolitan and rural areas. This last postulate is surprising and deviates from the usual “rich versus poor”.

And so it is logical for me that Collier does not write a swan song to capitalism, but calls for it to be reformed. Because over the past 40 years, capitalism has left too many people behind. The “Rottweiler” mentality that has prevailed since around 1980 has destroyed society. This is because “capitalism has increasingly failed to deliver on its most important promise – a constantly rising standard of living for everyone: some people have continued to benefit, but others have been left behind.” For Collier, the rise of populist ideas is just the logical consequence of this way of thinking. He therefore calls for capitalism to be steered in new directions: “Capitalism must be managed in such a way that it takes into account both the need for meaningful work and productivity requirements.” The mental leap to entrepreneurial purpose is not particularly great. However, Collier also sees the state as having a duty. It must not treat citizens like consumers, but must offer ethically responsible solutions: For example, supporting families, creating good jobs, transfer payments from city dwellers to the inhabitants of rural regions, promoting dynamic companies and, in return, limiting companies that only aim to maximize profits.