The Values Behind Market Capitalism
Tony Blair, Stephen Green, Indra Nooyi, Shimon Peres, James J. Schiro, Jim Wallis with Maria Ramos

Tony Blair – introductory remarks on the Values of Capitalism

• tendency to want to staate at this conference – “The End of Capitalism”
• it is normal and intelligent to reflect on the system
• New world, but we have been taught old lesson – that values matter
• we will build new regulation that will solve for the last crisis because that is what we do

• Old lesson was enlightened self interest, sense of long tgerm value, transparency – financial system at the service of the wider economy, and society.  Old lesson that we have re-learned again
• free enterprise has not failed – financial system has failed

1. The concept that the wider interest is as essential as the narrower shareholder interest – enlightened self interest
2. This ciris is global in nature – this is new and not seen in earlier crises

• globalisation has moved ahead of the capacity of the political system to manage
• it would be bizarre to speak about the G8 – in the space of a few months the G8 is unthinkable unless broader membership
• important – getting the right strategic relationship between US and China – big challenge for US administration
• 2nd thought: increased globally – shared purpose and shared values
• need enlightened self interest
• we need stakeholder capitalism – wider interest – not narrow shareholder interest
• important – getting the right strategic relationship between US and China – big challenge for US administration
• 2nd thought: increased globally – shared purpose and shared values
• need enlightened self interest
• we require shared purpose and shared values including justice
• Africa is important is not just about Africa – it is an essential expression of our belief on the global community
• revive a concept of free enterprise that has enlightened self interest and stakeholder broader view of success
• target would be a prosperous and just world

Stephen Green, Chairman HSBC

• How do we deal with the incentives in the system that do not addess the ;points raised by Tony
• the system allows the value of a transaction to be the only measure
• need to overhaul the regulatory environment, Basel2, Accounting – but no amount of rules will enforce good behaviour.  Rules will not institute values.
• sustained economic development in the world requires an international capital market system
• need profit growth, but we need to think about the broader responsibilities
• translates into compensation issues
• things will not bounce back to the way things were – need to bounce to something

Theme:  Capitalism is required, and well functionaling international markets are rewquired.  Regulation in and of itself is not adequate to provide for the riht kind of system.