Scarcity and Lack as Ontological Phenomena: Unfolding New Avenues in Economics and Public Policy | Elena Leontjeva

New Media UFM  | 03 de mayo de 2024  | Vistas: 60

The Universidad Francisco Marroquín (UFM) has as a guest Elena Leontjeva, cofounder and president of the Lithuanian Free Market Institute (LFMI), who will address the topic of new avenues in economics and public policy in Lithuania after its independence of the Soviet Empire in 1990. 

Embrace scarcity as a driving force for advancement and self-improvement." — Elena Leontjeva

Elena shares how she and her colleagues believed that adopting Western principles would swiftly bring prosperity to Lithuania. Despite dreams of luxury, reforms didn't eliminate scarcity. Rapid privatization was vital, giving everyone vouchers to acquire shares, flats, or land. This marked a departure from socialist property norms, where theft from the state was common. Transitioning to a market economy, Lithuania established a capital market and stock exchange within three years, fostering a mindset of ownership and shareholder responsibility, transforming the nation from collective to individual property ownership.

Our whole life is a dialogue with different incompletes and opportunities of scarcities." — Elena Leontjeva

In 1993, Lithuania introduced its national currency without a clear constitution, prioritizing independence from Moscow. The Central Bank's interventionist policies caused the currency to appreciate rapidly against the dollar, disrupting business operations. Elena Leontjeva promoted the currency board model, ensuring the currency was fully backed by foreign exchange and gold reserves, preventing central bank interventions. She authored and successfully enacted the credibility law, transitioning to a convertible currency overnight. This led to a significant drop in high interest rates, facilitating business loans and economic growth. This experience highlighted the importance of sound money and led Elena to explore scarcity as the driving force behind all economic actions and human progress.

By perfecting the world, we also perfect ourselves." — Elena Leontjeva

Elena reflected on scarcity beyond economics, seeing it in intellectual, emotional, and spiritual realms. She noted that human desires are unlimited, driving innovation and improvement, often spurred by significant challenges. Her experience with Lithuania’s economic reforms highlighted the value of individual initiative and the risks of excessive government intervention. She cautioned against politicians' utopian promises and urged people to harness their abilities and collaborate to address challenges, fostering a resilient and adaptive society.

Scarcity is an element of change and a universal principle everywhere in being." — Elena Leontjeva

Through her work and observations, Elena Leontjeva highlights the enduring presence of scarcity and its role in shaping human behavior and societal progress. Her insights emphasize the need for sound economic policies, individual responsibility, and a realistic understanding of human nature to build a prosperous and resilient society. Her journey from economic reforms to exploring the philosophical and practical implications of scarcity provides valuable lessons for both policymakers and individuals striving to navigate the complexities of a changing world.