Examining the Dynamics of Corporate Power: CDDRL Launches New Program on Capitalism and Democracy
Led by Professor Anat Admati, the program explores how capitalism interacts with democratic institutions and how a better balance between them might be achieved.
In today's global landscape, corporations play a pivotal role and, in many ways, have a greater impact on our lives than governments. Their influence on the economy, democracy, and the rule of law is profound, shaping rules, enforcement mechanisms, international agreements, and the provision of essential services. The Center on Democracy, Development and the Rule of Law (CDDRL) at Stanford’s Freeman Spogli Institute for International Studies (FSI) is pleased to announce the launch of the Program on Capitalism and Democracy (CAD), which will explore the complex interactions among democratic institutions, markets, and private-sector participants.
Led by Professor Anat Admati, affiliated faculty at CDDRL and the George G.C. Parker Professor of Finance and Economics at the Stanford Graduate School of Business (GSB), and undertaken in collaboration with the Corporations and Society Initiative at the GSB, CAD will explore the potential opportunities, tensions, and challenges to democratic governance that capitalism presents. Whereas markets and private-sector institutions need effective governments and laws to enable their success at scale, the forces of capitalism can undermine democratic institutions, distort rules and enforcement, and exacerbate injustice. Through research, policy development, and educational activities, CAD will seek approaches that promote truth, accountability, and the proper balance of power so that society can realize the full benefits of both capitalism and democracy.
“We do not have to choose, as some suggest, between ‘free market capitalism’ and ‘big government,’” said Anat Admati. “Rather, we must create a system in which markets and corporations can thrive without distorting the economy and democracy and in which democratic governments write and enforce proper rules for all. I am excited to launch the Program on Capitalism and Democracy and eager to promote interdisciplinary collaborations and make a positive difference.”
“This program represents a unique opportunity to address the challenges facing democracies today, advocating for a balance that ensures corporations contribute positively to society without compromising democratic values and public interests,” said Kathryn Stoner, Mosbacher Director of CDDRL. “I am thrilled to have CDDRL partner with Anat on the CAD program, and know that our academic community will benefit greatly from meaningful dialogue that advances our understanding of the complex relationship between capitalism and democracy.”
On Monday, April 1, 2024, CAD will host its inaugural event, titled Is Democratic Capitalism in Crisis?, with Admati in conversation with Global Witness co-founder Patrick Alley, moderated by FSI's Mosbacher Senior Fellow in Global Democracy, Larry Diamond. The panel will address critical questions, such as, "Do capitalists and their enablers undermine the principles of democracy by exacerbating inequalities and interfering with the justice system?" and "How can we restore fairness and trust, increase transparency, and empower truth?" You can learn more about the event and register to attend virtually or in-person here.
