MARKET – DAMNATION OR SALVATION? ON THE OCCASION OF THE 65TH ANNIVERSARY OF THE ACTIVITY OF THE INSTITUTE OF ECONOMICS, ZAGREB

USA, showed that contemporary capitalism survived not by the help of the invisible Adam Smith’s hand but on the contrary based on the very visible John Maynard Keynes’s hand.
Strengthening of globalization trends and integration processes in the conditions of the reform of the welfare society must also take into account the fact and the historical experience that sustainable development cannot be realized only by the help of the autonomus
market activity. That altogether refers to the complex of economy, welfare considerations and ecology. Consequently there is a necessity, on the all levels of individual countries, over integrations, to the planetary level of the United Nations and specialized agencies and institutions, to introduce and develop the criteria of solidarity beside the market criteria. The European Union is a very good example. However this combination on the planetary level is completely marginalized. Therefore the existing huge discrepancy between developed and undeveloped part of the world
is the strongest problem in realization of the sustainable development concept. The search of adequate solutions must start with the historically unquestionable fact that capitalism survived owing to the activity of the very visible John Maynard Keynes’s hand. The
ways of sustainable development should be looked for in this direction. Only on these fundamentals a dilemma market damnation or salvation becomes a quasi dilemma. That means that alleviation of controversies of market and democracy should be directed to
the increase of the welfare of all people and not only those who were fortunatelly born in developed countries and parts of the world. The most responsible agents of the world, the most infl uental countries (especially USA) and the United Nations must become aware of
the fact that dominating doctrine of neoliberalism cannot ensure sustainable development. That demands deep changes.