Opposition to neo-liberalism can be summarised under the heading ‘the moral economy’. In a moral economy, human beings accept moral responsibility for what happens in the economy. We stop pretending that if everyone pursues their own selfish interest an ‘invisible hand’ is going to magically bring about our collective good.
Accepting moral responsibility does not entail taking control of every aspect of the economy. We can accept that, in some areas, properly regulated markets work reasonably well. However, the provision of universal public services should not be left to the market but should be performed by the public sector. Natural resources such as oil and metals belong to us all, and should not be left to small cabals to exploit and profiteer. We need to consume only as much oil as we need to create new renewable energy systems – the rest should be left in the ground if we want to have a future.
In a moral economy we should not be afraid to make qualitative as well as quantitative judgments: just because gambling and pornography are lucrative doesn’t mean they are useful parts of the economy. There needs to be clear understanding of the relationship between business good and public good: there are areas where they overlap and areas where they are mutually exclusive. Where business goes against the public interest it should be discouraged through regulation and taxation, and in some cases banned.
Manipulative technologies such as genetic modification are too dangerous to be left in the private sector. The trivial profit motive should not be involved in decisions which affect thousands of future generations. Harvesting and enclosing genes through patents is something that the public can have no truck with – how can it ever be in our interest? Amartya Sen’s research shows that small-scale farming by peasants is the most productive use of land and resources. We can feed the world with land reform, micro-finance and education. Genetic modification is an unnecessary, greedy innovation.