Paul Saffo, currently teaching at Stanford and on sabbatical from the Institute for the Future where he has served since 1985, writes an insightful essay titled Capitalism’s Diverging Future. He observes that after the fall of the Berlin Wall that capitalism became the world’s dominant economic system. However, rather than becoming a single unified system that capitalism has diverged into multiple systems, each affected by local cultural forces. Each model has its strengths and weaknesses and as each develops they will demonstrate new ways of contributing to commerce. And as each develops new sources of friction will emerge between the systems.
The reason this essay intrigued me is that in interacting with an audience that is mainly American, there is a tendency to define capitalism in one way. Even Christian apologists for capitalism fall into this trap. The danger is that our view of capitalism will shape our theology, rather than having a biblical worldview shape our view of capitalism.
Saffo examines the three main variations that stand out at the moment on the world stage. He summarizes the main tenets of each, the key drivers and values, the time frame orientation, the politics and guiding philosophies, the role of technology, how each measures success, the view of the individual and community, as well as other strengths and weaknesses of each model. (Each of these categories are worth thinking through from a biblical perspective. A great personal development exercise!)
The first is entrepreneurial market capitalism most exemplified by the U.S. The model adores the individual entrepreneur, “embodies a near-religious belief in free markets, embraces risk and failure as part of the path to success, possesses a short term view of the future, and has a propensity to excesses in CEO pay and IPO valuations. I appreciate the emphasis on individual responsibility, freedom, innovation, and risk.
The second is cultural capitalism most apparent in Europe, especially France. This model is more concerned about the continuity of culture and national identity than innovation. It has a longer term view of investment and is concerned about the social and cultural benefits to society. This leads to subsidies for Swiss cows that are more than most people in the developing world and the French 35 hour work week. Believe it or not, I appreciate in this model the long term view of investment and the concern for the impact on society.
The third is the community capitalism of Asia that focuses on serving the extended family…more than the nuclear family but less than society as a whole. It honors the creation of wealth and the preparation of the next generation. In this model, the city-state such as Singapore is prominent over the nation-state. I especially appreciate the emphasis on the extended family and the next generation. The theme of the "household" or "oikos" is prevalent in the scriptures. More than the nuclear family or the individual, the scriptures look at the the extended family as the economic center of activity and the preparation of the next generation as a paramount responsibility of the head of the household.
Which system will emerge as dominant? Which will best respond to the challenges of the 21st century? And how should each be critiqued from a biblical point of view?
Beyond these three dominant models, there are others developing such as an Islamic Capitalism and the Socialist Capitalism of Hugo Chavez.
Read the essay. Critique them through a biblical lens. Remember that as a citizen of God’s Kingdom, you are an alien in all these systems. The Kingdom of God is your permanent address.
