Free market capitalism has failed the former Soviet states

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Free market capitalism has failed the former Soviet states

15 Jun 2010

This Foundation for Effective Governance debate (with IQ² as technical partner) took place in Kiev on June 15th 2010 and was broadcast by BBC World News.

Click here to read the accompanying written debate.

Arguing in favour of the motion are David Aaronovitch and Irina Khakamada.

David Aaronovitch begins by stating that there is no feasible alternative to capitalism. But, the type of capitalism that has been practised in the former soviet states is comparable to that which prevailed in the US in the late 19th century and it is this laissez faire brand of monopolies and oligarchs that has failed them.

Irina Khakamada argues that the countries of the former Soviet Union were simply not ready for capitalism. These countries had overrated expectations of capitalism because of its success in Western countries, this assumption that it guaranteed freedom plus individual rights and wealth meant they were not ready for the disparity and lack of state paternalism.

Arguing against the motion are Kateryna Yushchenko and Andriy Schevchenko.

Kateryna Yushchenko, the former First Lady of Ukraine, argues against the motion by first pointing out that in those former Soviet states that acted quickly and decisively to implement reforms the results have been impressive – bringing economic growth, greater opportunities and higher standards of living.

Andriy Shevchenko argues against the motion because although capitalism may not have brought people all that they expected, it has brought hope and inspiration to the people of the region.