Joints between Businesses and Public Sector institutions are part of the world today in rapid “disruption”.
In other words, this is the phase of evolution of our Society defined Crony Capitalism, which proposes a soft variant of the totalitarian “social state” of real Socialism (Soviet Union or China).
It is not an academic question of business ethics. It is a question of taking note of the results obtained from this type of Market.
The “statism” today is in serious crisis:
● in the Government of real Socialism (Communism) as in Venezuela (one of the potentially richest countries in the world, thanks to the oil fields), to the European Social-democracy, literally bankrupt.
● in the (“top-down” pseudo-market), managed by the “Incumbents” who obtain favorable conditions for their business from the State (Laws, subsidies).
That is, this pseudo-market, favoring the creation of StartUp with “top down” choices by Public Administration (subsidies) prolongs the life of a bankrupt Market (and blocks the development of a real innovation).
Unfortunately, this Joint between Business and Public Administration creates a monopoly situation that makes it very difficult to develop new truly innovative Startups.
Why does not work the “joint” between Business and State
Today no longer takes into account that the Market (the Society)
1) or is managed as a “free initiative”: it is the Market as Adam Smith still saw it (citizens are free to develop initiatives, but they are harshly punished – by the citizens themselves – when it is not able to satisfy the “Demand”).
This happens both at the legal level, with the Anglo-Saxon Law. Both, in a more widespread way, with the Market Law: if the product does not work for the Public (the Citizens), it is punished with a non-purchase.
2) or is managed by the State “Institutions”.
There is no middle ground. If the State assigns itself an initial right to intervene in the system of “free initiative”, taking advantage of this initial right it is able to broaden its top-down action (the State is Legislator, and with new laws it can, day by day, change any rule).
To get out of the current market crisis
it is necessary to
RESTORE THE CONDITION OF “FREE INITIATIVE”.
This is the only way to free up the bottom-up potential of entrepreneurial talents currently blocked by Market Monopolies and ad hoc Laws that protect this form of pseudo-Market.
Continuing to follow
the pseudo-market of the
“Joint” between Companies and Public Insitutions
can only lead – soon – to failure.