'Democracy, equality, fraternity': US economist Joseph Stiglitz receives Catalonia International Prize

US economist Joseph Stiglitz was handed the Catalonia International Prize by president Pere Aragonès at a ceremony held at the Catalan government headquarters on Thursday. 

The winner of the 2001 Nobel Memorial Prize in Economic Sciences was lauded for his lifetime of work against social and economic inequality and against the climate crisis. 

During his speech upon receipt of the award, Stiglitz reflected on the ideas of democracy, equality, and fraternity, urging the world to fight for a better, more just, economic system. 

Stiglitz explained that the award was "particularly meaningful" to him as he has spent a lot of time in Barcelona and Cadaqués and has made a lot of friends in Catalonia. 

He wanted to remind younger generations that the current system of neo-liberal capitalism is "not working" and has not been working for the past 40 years, "a long time to run an experiment."

"We don't have to take what we inherit, we can change society and institutions and improve them," the 80-year-old remarked. "Capitalism as we've had it over last 40 years, neoliberal capitalism, has resulted in huge growth inequality, something we've not seen in the last century."

As such, he urged people to engage in debates and interchanges of ideas in order to reflect on how better to run the world, as he believes that freedom is not complete unless society can guarantee a high quality of life, health, and education for all, allowing people to achieve their full potential. 

When Stiglitz was young, he explained in his speech, he learned certain lessons that have gone on to significantly impact his life and his work. He witnessed racial discrimination and social inequality suffered by African Americans in his home country, and could not understand why certain sectors of society were left behind in the way the United States was leaving the Black community behind. "Use your knowledge to serve humanity," his parents urged him. 

Working in the Clinton administration in the US government, and later as chief economist of the World Bank, Stiglitz wanted to use his position to "try to change public opinion." 

"Democracy won't work if there's a concentration of power, it's not democracy if there's a concentration of wealth," Stiglitz told the room featuring many of Catalonia's top politicians. "The media is very important in this setting. Democratic dialogue is important, to have independent media is essential for the survival of democracy." 

Stiglitz also spoke about the need for solidarity. "There will be differences of opinion naturally in society, but there has to be compromise and agreements," but he was keen to warn that this is impossible without solidarity, which can only exist without excessive inequality. 

A radical change of system is "necessary" to save society and the planet, the Catalonia International Prize winner laid out. He concluded his speech by speaking about the idea that the modern system is designed to make people feel like there is no alternative, an idea that he wanted to repudiate: "This is not just a dream, we have to make this a reality.

"But it won't happen on its own, we have to fight for it. When we get it, we have to continue fighting to keep it. Every generation has to fight this fight to maintain a society with equality."

"I think there is an alternative [to the current neoliberal system.] I've described it in words of 'progressive capitalism,' or 'rejuvenated social democracy'," he also said.

Praise for Pedro Sánchez

Speaking at an event on Wednesday, the economist praised the policies and actions of Spanish PM Pedro Sánchez and admitted his "surprise" that the Socialist is not better supported. 

Stiglitz contrasted the "reasonable and intelligent" profile of the Spanish PM with the "divisive" nature of former US President Donald Trump. The Catalonia International Award winner has warned that if PP and Vox govern in Spain, "regional tensions" and social inequalities will increase.

The American economist also expressed his concern about the increase in interest rates and the impact they can have on the European economy, and in particular on the real estate sector, and urged for administrations to back public housing in a stronger way.

Stiglitz also views a four-day workweek as "perfectly reasonable," and feels it's necessary to allocate more resources and innovation to "decouple economic growth from environmental destruction."

Catalonia International Prize

Catalan president Pere Aragonès praised Stiglitz's "effective pragmatism" when it was announced that the economist was this year's winner of the award.

Stiglitz has also been recognized for his implication "in improving the economy and the world," Aragonès said, who also acknowledged the fight of the accoladed against inequalities and for equal opportunities for everyone.

"He tackles inequalities as if they were not unavoidable, but rather as a way and how the economy moves towards if there is equality," the president remarked.

The Catalonia International Prize has been awarded annually since 1989 to people who have contributed to developing cultural, scientific, and human values around the world through their creative work.

With the award, the Catalan government wants to recognize and stimulate creators and offer Catalans examples of the highest quality.

The prize includes a grant of €80,000 and a sculpture of Antoni Tàpies's 'The Key and the Letter.'