1. THE SYMBIOSIS OF
DEMOCRACY AND
MARKETS
ELEANOR FOX
PROFESSOR, NEW YORK UNIVERSITY SCHOOL OF LAW
OECD GLOBAL FORUM ON COMPETITION 7 DECEMBER 2017

2. THESIS
DEMOCRACY REQUIRES MARKETS
MARKETS DO NOT REQUIRE DEMOCRACY
MARKETS HAVE TWO FUNCTIONS:
◦IN SERVICE TO DEMOCRACY, AND IN SERVICE TO
EFFICIENCY
DEMOCRACY IS FOR THE PEOPLE AND AGAINST
AUTOCRATIC POWER; SO ARE MARKETS – OR THEY SHOULD BE

3. THE INFLECTION POINTS THAT PROVE
THE SYMBIOSIS
INFLECTION POINTS:
◦WORLD WAR II
◦THE FALL OF THE BERLIN WALL
THE DEMOCRATIC MOMENTS ARE PILLARS THAT ANCHOR
THE RELATION
THE STORIES – US, EU, TRANSITIONAL AND DEVELOPING
COUNTRIES – ARE RICH WITH LINKS

4. THE STORIES: DEMOCRACY AS THE
UNMISTAKEABLE PLAYER
The USA
◦1890: “If we will not endure a king …”
◦The early Supreme Court
◦Divergent ideologies within market discourse
◦ More equity for the little guy or more freedom from government
◦1950: the Congress that amended the merger law
◦ We will not have a Hitler or Stalin
◦Almost a century of antitrust as democracy of the
marketplace

5. The European Union
Again, the democratic moment at the end of
World War II
The formation of the European Economic
Communities
◦Openness, access, and against privilege

6. THE NEXT INFLECTION POINT AND THE
TRANSITIONAL COUNTRIES
THE FALL OF THE BERLIN WALL (1989) MEANT A
SHIFT FROM COMMUNISM TO DEMOCRACY AND
FROM COMMAND AND CONTROL TO MARKETS
A SPECIAL CONTRIBUTION OF THE TRANSITIONAL
COUNTRIES:
◦THE NEED TO CATCH PERVERSE, HARMFUL,
ANTICOMPETITIVE STATE RESTRAINTS
◦Rounding the circle of competition for the people

7. ... and the Developing Countries
AFTER THE FALL OF THE WALL AND FINANCIAL CRISES
COUNTRIES THAT KNOW MOST DEEPLY THE PROBLEMS THAT GAVE RISE TO THE
UN SUSTAINABLE DEVELOPMENT GOALS – POVERTY AND LEFT OUT MAJORITIES
EVEN WITHOUT THE HUMANE VALUE OF EQUITY
◦ THE COUNTRIES CANNOT REACH THEIR POTENTIAL FOR EFFICIENCY WITHOUT
INCLUSION; TEAR DOWN THE BARRIERS
◦ INCLUSIVE, SUSTAINABLE DEVELOPMENT AS A DEMOCRATIC COMPETITION VALUE
◦ IT IS NECESSARY TO APPLY INCLUSIVE VALUES TO MAKE MARKETS BY AND
FOR THE PEOPLE

8. THE WORLD
THE DEMOCRATIC VALUES TO REGARD:
COMMUNITY, SYSTEMS HARMONY, MUTUAL ACCESS AND RESPECT, FAIR
PROCESS
◦ AND REGARD FOR THOSE THAT ECONOMIC POWER MAY HARM
COSMOPOLITANISM AS A DEMOCRATIC VALUE
◦ ESPECIALLY IN A WORLD ABOUNDING WITH NEW TECHNOLOGIES THAT KNOW NO BORDERS
◦ AND NATIONS SEDUCED BY NARRIOW NATIONALISM
ROOM FOR OUR INTERNATIONAL COMPETITION INSTITUTIONS TO ADVANCE
THE DEMOCRACY OF COMPETITION FOR THE WORLD COMMUNITY

9. CONCLUSION
DEMOCRACY REQUIRES MARKETS
MARKETS DO NOT REQUIRE DEMOCRACY – BUT
THEY PUSH IN ITS DIRECTION
for MARKETS ARE, OR SHOULD BE (WITH
COMPETITION LAW/POLICY)
BY AND FOR THE PEOPLE