Capture of politics by business

Session supported by the Oxford University Press journal ‘Economic Policy’

Parallel Session D.2 – 16:15 – 17:30, Thursday 2 May, Sala degli Stemmi, Villa Salviati, EUI

Abstract: In several countries, we have observed the growth of companies with an economic power that is becoming larger than those of many nations. Such economic power has frequently been transformed into political power, in turn generating more revenue for these firms. This phenomenon has been labelled by Luigi Zingales as the “…Medici vicious circle: where money is used to get political power and political power is used to make money”. This session will discuss whether market forces should be free to guide these processes, or whether they are dangerous and should be controlled. And in the latter case, how?

A conversation between Sergei Guriev, Chief Economist, European Bank for Reconstruction and Development and Luigi Zingales, Professor, University of Chicago Booth School of Business