»Finance for the People« - Kapuscinski Development Lectures with prof. John Kay
On Monday, 16 October 2017, Faculty of Social Sciences of the University of Ljubljana hosted Kapuscinski Development Lecture, which are organised by UNDP under the sponsorship of the European Commission. The purpose of these events is to promote development issues by a series of lectures by renowned international experts. FSS hosted Professor John Kay, one of Britain’s leading economists, who focuses primarily on the financial sector and its role in developed economies. In his lecture, he described the origins of banking and financial sector, whose original role was to serve the households by managing their payments, savings and provision of loans to enterprises. Professor Kay pointed to the fact that through the years the financial sector moved away from its original mission and focused on activities, which are of marginal benefit to its traditional clients: households and small businesses. The escalation of various types of financial transactions, which according to his calculations, represent nearly 97% of all activities of large financial institutions, created a highly vulnerable international economy. Not only is such a world much more prone to crisis, like the one experienced in 2008, but we are also faced with growing income inequality, especially in USA and UK. Today’s financial sector cannot be controlled in spite of growing regulation, so more frequent financial and economic crises may be expected. Developing countries should therefore focus on development of their own banking and financial sector, suitable to serving the needs of local small business and support their stable economic growth. Lecture was followed by the short discussion, where Professor Emeritus Marjan Svetličič reflected on the lecture. Professor Maja Bučar, Head of Centre of International Relations moderated the event.
The video of the lecture is available on the Kapucinski Development Lectures website.