"Promoting market-facilitating institutions is how you escape falling into the middle income trap" - Christopher A. Hartwell at the Astana Economic Forum 2017

Christopher A. Hartwell, President of CASE, participated in the Astana Economic Forum 2017.

Dr. Hartwell gave a presentation during a flagship session "Transforming Capitalism to Inclusive and Sustainable Future" on June 15th. He underlined that capitalism is meritocratic. Crony capitalism, not “capitalism,” is unsustainable and morally unjustifiable: it is against technological change, ensures environmental distortions and perpetuates inequalities. Inequality persists in countries with less capitalism. The way to address issues of sustainability and inclusiveness is to embrace a more capitalist, less socialist or hybrid system. Dr. Hartwell concluded that capitalism remains the only moral and effective alternative in a world overrun with populist and statist solutions.
On June 16th. Dr. Hartwell participated in two sessions discussing the middle income trap: "Middle Income Trap: New Phenomenon or Part of the Standard Growth Model" and "Middle Income Trap. Country Experience". According to President of CASE, the Middle Income Trap has highlighted the challenges economies face as they move up the growth ladder. However, what’s laying the trap are the same obstacles faced at all levels of development: politics, limits of capital accumulation, need for human capital and technology. Promoting market-facilitating institutions is a way to escape falling into the middle income trap. The case if Poland is a proof that institutional reform is the key for sustainability of growth. Without property rights and executive constraints, growth is always under threat from politics.