What is the social market economy that Francisco and Stiglitz offer to the world

In this context, the pontiff encouraged the American economist to "to promote meetings and programs related to the current problems of youth at the global level" with the Pontifical Foundation Scholas Occurrentes.

In a "friendly" climate during their first face-to-face meeting, the Pope and the Nobel Prize winner coincided to warn against "the problems of certain forms of market economy that do not put markets at the service of the people, but the people at the service of markets and exacerbate individualistic behavior", Vatican sources reported.

The Social market economy It is known as "social capitalism" or "Rhenish capitalism", according to German and French production models, two countries crossed by the Rhine River. The ESM aims at creating a competitive economy, but badociating free initiative with social progress ensured by economic capacity, where the state guarantees competitiveness and avoids the concentration of power.

The MES respects the free market (price formation, private property and aspiration of profits), but it attributes to the state an interventionist role when it is necessary to preserve the public interest. Some writers and thinkers call it the "Third way" between socialism and capitalism.

In September 2018, Stiglitz spoke of the financial crisis in Argentina and warned that the austerity measures announced by the government "They will slow down the economy and impose a high cost on people", while suggesting to the President Mauricio Macri "Think about restructuring the country's debt."

At the 40-minute summit in Rome, attended by world directors from Scholas, José María del Corral and Enrique Palmeyroa Memorandum of Understanding was signed between the Pontifical Foundation and the Institute of New Economic Thought (INET) for the promotion of joint activities.

"It is essential to work on education in alternative systems that do not have the principle of" idolizing money. "We have to try to develop programs and programs. studies around the concept of circular economy, which contribute to a conscious education of environmental sustainability to the environment what is removed "summoned Stiglitz.

"If this is not the case, humanity commits suicide," admitted Francisco at the meeting, which was also attended by members of INET's Commission for Global Transformation (CGET) Peter Bofinger, Ramón Contreras and Eisuke Sakakibara and Martín Guzman, economist at Columbia University.

At the meeting in the Vatican, which culminated with a day of work begun at the headquarters of the Pontifical Foundation at the Palace of St. Callisto, Stiglitz proposed to the Scholas Foundation to contribute to a report to be presented at international economic forums. It was developed in its first phase in 2019 and will be part of 2020 in a second phase, through the CGET of INET.

"We are deeply interested in working with Scholas to deepen discussions on social issues and the changes brought about by globalization, as well as to think about concrete ideas about what we should do to make technology and markets work for us. of humanity and not the opposite, "said Stiglitz

Scholas executives told Telam that working with Stiglitz would be one of the bases of the World Congress that the foundation born in Buenos Aires will be held in New York next June.