The YAFO Institute’s 2024 Policy Dialogue Series continued with a stimulating panel discussion on the theme: “Bridging Profit and Principles: A Dialogue on Capitalism and Morality.” Mr. Nathaniel Dwamena, the distinguished president of the YAFO Institute, presided over the discussion with skill. Two highly esteemed guests graced the occasion: Mr. Bruce Koerber, a renowned economist and author of “Divine Economy Model”, and Mr. John Mugabi Socrates, the Executive Director of Action for Liberty and Economic Development (ALED). ALED is a libertarian think tank committed to empowering, educating, and promoting a culture of freedom and prosperity in Uganda.
To commence the discussion, the speakers shared a general understanding of capitalism, stating that capitalism simply meant a market economy and how people operate when they are free. By their definitions, Capitalism gives individuals the right to choose what is right for them and to pursue their happiness. Capitalism gives people the freedom to make choices without any coercion or force. On the crucial topic of morality and relating to capitalism, Mr. Bruce Koerber explained how Capitalism is the expression of capital to function, in the sense that capital means goods for the future. It’s not possible for any human being to be disinterested in goods for the future, that is essentially what motivates us.
Capitalism can only be immoral when humans are deemed valueless or regarded negatively. The only one that negatively portrays humans is the State in its attempt to control the populace. Morality recognizes the truth which is that human beings are sovereign within themselves and as such should be able to exercise their God-given talents. In the long run, human beings are capital in themselves.
The panel examined additional fundamental ideas entwined with morality to advance the conversation on morality. In response, Mr. Mugabi discussed the intersections between capitalism and the values of justice, fairness, and equality. He went on to explain how corporations don’t take profit from people by coercion or against their will; rather, the profits they produce are a sign of society’s acceptance that it has gotten something valuable from the company. He continued by explaining that, despite the belief of many that profit is sinful, the greatest justice occurs when a person is allowed to take something valuable from another and compensate him for the value he obtains.
At the time of any transaction, there is essentially justice and freedom of choice. Demanding that producers distribute their goods freely or at a cost that would prevent them from producing in the future would be more unfair. As he discussed his views on capitalism and morality, Mr. Bruce used the occasion to refute the idea that people are inherently greedy and self-centered. He claimed that rather than being self-centered, people are subjective. Subjective in the sense that their decisions are primarily the outcome of their experiences in life and their attempts to improve them. Entrepreneurship addresses people’s inclination to let their greed or selfishness govern them in a free market. This is because once someone discovers a wealth-generating idea, others will follow suit and invest in the business. In an economy characterized by free markets, the negative characteristics of greed and selfishness are unlikely to be evident.
The panelists also discussed how social facilities will be made available to the public. In a capitalist society where people are dedicated to using their abilities and talents to generate what is best for them, such facilities would be readily available to meet their requirements. In contrast to a capitalist concept, there is the premise that a segment of society’s population is supposed to be disadvantaged indefinitely. This notion results in a sort of oppression in which governments take resources from such persons and channel them into society amenities, despite the fact that some of these disadvantaged individuals may never have access to these facilities. This is the greatest immorality.
Entrepreneurs are by nature persons who are concerned with satisfying the wants of others. If the demands of society come under the category of social amenities such as schools, roads, and so on, entrepreneurs will be willing to meet those needs.
Regarding corporate social responsibility, businesses and entrepreneurs should be able to give back to society as they see fit, without their actions being judged by moral standards. When examining the impact of this donating practice on the African continent, we might take a broader perspective. Africans rely heavily on the West to continue providing for their continent. A free market provides for individuals by producing jobs and improving their quality of life. On a worldwide scale, some locations appear to be allocated for the wealthy and elite, while others are marked for the poor; this phenomenon is the result of statism.
Capitalism is synonymous with free markets, and there are few of them on a worldwide basis. Precolonial Africa had an economy based on free commerce and capitalism; the pseudo-idea of socialism emerged in the postcolonial era, following our continent’s penetration by the Western world.
Mr. Bruce Koeber, in response to a question, gave insight into his entrepreneurial experience and how entrepreneurial operations are more favorable than managerial operations. Entrepreneurial operations are likely to succeed because they are focused on adapting, responding, and reinvesting profits in order to continue providing for customers. Managerial styles tend to be more structured, controlled, and bureaucratic. On the matter, Mr. Mugabe recalled instances in which the Ugandan government attempted to fund businesses. He referenced airlines as an example of a government-funded or backed industry that generates nominal profits.
The panel attempted to distinguish between crony capitalism and true capitalism once more. Stating that most enterprises have become managerial rather than entrepreneurial and that this occurs in times of statism. Thus, crony capitalism is a direct byproduct of statism.
Before the conversation concluded, the chair enabled the audience to offer questions to them. The audience offered intellectual questions on capitalism, which the panelists responded to based on their expertise. The discussion spanned from capitalism to the concept of a mixed economy, privatization, morality, and the belief that capitalism fosters unhealthy competition.
After the conversation, participants rated the session as educational and illuminating and expressed a want to learn more about the subject. Watch the recorded episode here.
Article by
Benedicta Nelmon
Benedicta is a scholar at the YAFO Institute. As an academic and a member of the YAFO team, she contributes to the organization’s scholarly and research work. She is responsible for writing articles and website posts as well as the preparation of reports.
