Lead
Western democracies are experiencing an ideological shift: while state intervention in the economy is increasing, enthusiasm for libertarian ideas that reject any form of state regulation is growing. But what does this development mean for the future of the social market economy? Is libertarianism compatible with the idea of Economy 3.0, a model of cooperative value creation, or does it conflict with it? We talk to Oliver Fiechter, founder of Economy 3.0 and author of the book The Economy is Us, in which he first introduced the term in 2012.
Interviewer:
Mr. Fiechter, we are currently experiencing a dynamic in which Western democracies are moving either increasingly in the direction of state regulation or in the direction of radical libertarianism. What is your view on this development?
Oliver Fiechter:
Both are extreme responses to a real problem. On the one hand, the state has failed in many areas – be it in promoting innovation, in financial policy or in crisis management. This drives many people into the arms of libertarian ideas. On the other hand, libertarianism in its radical form has massive weaknesses because it divides rather than unites societies. Pure market logic, where everyone is out for themselves, does not lead to sustainable growth, but to a concentration of power and economic instability. But the other direction, which relies on a strong state, is also extremely dangerous because it stifles individual freedom and inhibits innovation.
Interviewer:
Is Economy 3.0 an answer to this tension?
Oliver Fiechter:
Exactly. Economy 3.0 is not market fundamentalism, but it is also not a planned economy. It assumes that the economy works best when it is decentralized, cooperative and interoperable. Classic libertarianism underestimates the fact that markets don’t just function through competition, but through intelligent, networked cooperation. At the same time, we don’t need overpowering states that suffocate the markets with bureaucracy. The problem is that we are currently caught between these two camps – and neither side really offers a sustainable solution.
Interviewer:
Libertarians would say that the market regulates itself. Why are you critical of this?
Oliver Fiechter:
Because it simply doesn’t work in practice. A market without certain common rules does not lead to more freedom, but to monopolization by the financially strong. One example is the tech industry: libertarians argue that competition promotes innovation, but in reality it is a few corporations like Google, Meta or Tesla that are virtually untouchable due to their market power and network effects. So an unregulated market does not automatically create a level playing field, but rather promotes oligopolies.
Interviewer:
Libertarianism is based on the so-called “non-aggression principle” of Murray Rothbard. Do you see this as a viable basis for a new economic order?
Oliver Fiechter:
The non-aggression principle is the ideological core of libertarianism. It states that no one may use force or violence against another person or their property, except in self-defense. In theory, that sounds reasonable, but in practice there is a problem: if everyone only refers to their individual rights, there is no basis for real cooperation.
The free cooperation of individuals is a central tenet of libertarianism – but paradoxically, an over-extension of individual rights can undermine this cooperation. That’s because cooperation requires rules – not centrally prescribed by the state, but in iterative processes in which the individuals negotiate them together. Without this mechanism, libertarianism quickly ends up in anarcho-capitalism, which ultimately only benefits the most powerful.
Interviewer:
Is this the decisive weakness of classical libertarianism?
Oliver Fiechter:
Yes, radical libertarianism is based on an ideal of the isolated individual who acts completely independently. In reality, however, economic value creation depends on trusting relationships, coordinated standards and recurring cooperation. That is why I advocate a European answer: explicitly cooperative libertarianism. It preserves the basic principles of libertarianism – market mechanisms, personal responsibility, freedom of innovation – but supplements them with socially binding norms of cooperation that arise in an evolutionary process.
Interviewer:
That almost sounds like a further development of the social market economy.
Oliver Fiechter:
Yes, the social market economy was an ingenious idea, but it is based on the industrial age and no longer meets the requirements of a digitally networked world. Cooperative libertarianism could be the successor to the social market economy. We need a system that combines freedom with interoperability, in which companies work with each other instead of against each other. This is not about traditional regulation, but about a form of “system design” in which market mechanisms are deliberately steered in an interconnected, cooperative direction.
Interviewer:
Wouldn’t that still be a form of regulation?
Oliver Fiechter:
It would be an intelligent framework, but not detailed state control. The internet is a good example: it is decentralized, open and interoperable. Nobody prescribes how websites should be constructed, but there are protocols and standards that enable collaboration. A similar approach could be taken in the economy: instead of bureaucracy and control, we rely on dynamic, adaptable systems of cooperation that promote innovation, but also ensure that prosperity benefits everyone, not just a small elite.
Interviewer:
To conclude: is Economy 3.0 a further development of libertarianism or its opposite?
Oliver Fiechter:
Neither. It takes the best elements of libertarianism – market freedom, personal responsibility, innovation – and supplements them with what is missing: systemic networking, synergies and a sustainable perspective. The future lies neither in over-regulated state capitalism nor in an unbridled market fundamentalism. The solution lies in intelligent coordination without paternalism – that is cooperative libertarianism.
Box text
What is Economy 3.0?
Economy 3.0 is an economic model that relies on interoperability, cooperation and decentralized value creation. It was first developed in 2012 by Oliver Fiechter in his book The Economy is Us! and describes an economic system that goes beyond the classic social market economy and adapts to the requirements of the networked, digital world.
The five basic principles of Economy 3.0:
- Cooperative market economy – companies do not operate in isolation, but in networks and synergies.
- Dynamic rules instead of centralized regulation – standards and rules are created in iterative processes, not through rigid state regulations.
- Interoperability instead of isolation – value is created through flexible, open networks and cross-industry cooperation.
- Capital as a catalyst, not as an end in itself – financial markets serve the real economy, not speculation.
- Technology as an enabler – blockchain, AI and digital platforms enable new forms of economic activity without excessive bureaucracy.
Economy 3.0 sees the economy as an open, self-optimizing organism that develops beyond competition through intelligent cooperation and evolutionary adaptation. It is neither a planned economy nor unfettered market liberalism, but a third way that combines efficiency with social progress.