Global capitalism needs human face
-- Prof. John Dunning in Anniversary lecture

'Global capitalism must have a human face,' according to Prof. John Dunning, who spoke at the OUHK's Anniversary public lecture held on 2 June. 'Sustainable global capitalism must rest on the acceptance of basic human rights of liberty, fraternity and non-discrimination,' Prof. Dunning told the 330-strong audience attending his lecture, 'Whither Global Capitalism'

An Emeritus Professor of International Business at the University of Reading and eminent advisor for the UN and OECD, Prof. Dunning is particularly concerned with social justice. He believes this must be an integral part of the objectives of global capitalism, and can only be achieved and accepted in a strong moral framework underpinning the role of global markets and extra-market institutions. 'Over the long haul, democratic global capitalism can only work if it is the will of the electorate who have other alternatives in their votes.'

Regarding the Asian financial turmoil, he pointed out that the market for financial assets was subject to huge volatility and speculations, especially where information asymmetry, opportunism, adverse selection and moral hazards were at play. Although falling short of a global set of rules, capital inflows and outflows may be restricted by national governments with limited unilateral leverage to adopt fiscal and other policies. An advocate of multilateral solutions, Prof. Dunning called on international agencies to play a key role in ensuring the work of cross-border investment guarantee schemes and increasing the transparency of all transactions by lending and borrowing institutions. This is despite the structure of the IMF being not currently well geared for either a rule setting or regulatory role.

Prof. Dunning (second from right) with OUHK staff.