Introduction
Governing is about resolving public problems, not just winning elections. It involves making decisions that affect various social segments. As the country prepares to host a global football tournament, it’s crucial for the economy. This is especially true given our current economic stagnation.
The Impact of Protests on Businesses and Investment
Regrettably, it seems that the risks posed by protests and demonstrations to businesses have not been adequately addressed. Authorities appear to be merely observing, and political rhetoric calls for dialogue without clear action.
Business owners, restaurateurs, and hotel managers affected by violent protests wonder: With whom should they engage in dialogue? Private investment demands security guarantees, as it puts accumulated capital at risk.
When entrepreneurs open businesses and invest resources, they hope to earn legitimate profits that support their families. Small and medium-sized enterprises, which create the most jobs, are particularly vulnerable to market fluctuations and public violence.
The Global Economic Displacement
A recent protest over rising rents and property values highlighted the global western issue of economic displacement. While free markets don’t solve all problems, their social costs can be severe, potentially threatening the market itself.
Historically, certain social policies emerged to address liberal economics’ shortcomings. These policies balance aspects that liberal economics couldn’t handle, and they should be part of a democratic state’s economic approach.
Balancing Private Investment and Public Interest
While fostering, encouraging, and protecting private investment is essential, conditions and commitments can be established for this investment. For example, the state can promote affordable housing through urban spaces it owns and offer tax incentives for renting to specific groups, like students or the elderly.
However, this must not infringe on private property rights, which provide economic security for individuals. History has shown the failure of alternative economic models when state intervention harms private property under the guise of public or popular interest.
Unattended Public Issues
Recent protests in the country’s central region, driven by housing affordability concerns, reveal a government’s neglect of an accumulating problem amidst others left unaddressed.
We face public insecurity due to an inadequate security institution framework and a deteriorating public health system, despite the efforts of our healthcare professionals. Public education worsens due to political negotiations with teachers, while businesses are constantly under attack from criminals or the state.
Key Questions and Answers
- Who should businesses engage in dialogue with? Business owners, restaurateurs, and hotel managers affected by violent protests need clear channels for dialogue with authorities to address their security concerns.
- What are the consequences of neglecting public issues? Neglecting issues like housing affordability, insecurity, healthcare, and education can lead to social unrest and economic instability.
- How can governments balance private investment and public interest? Governments can establish conditions for private investment while ensuring social welfare through targeted policies and institutions.
- What lessons can be learned from past economic models? History demonstrates that both free-market extremes and overbearing state intervention have significant drawbacks, emphasizing the need for balanced, democratic economic policies.
