In an era marked by geopolitical shifts, technological revolutions, and evolving economic landscapes, the private sector remains the cornerstone of economic growth and democratic resilience. This reality is not merely a matter of economic theory but a proven engine for social stability and innovation. At the recent 34th Annual Meeting of the European Bank for Reconstruction and Development (EBRD), this principle was powerfully articulated by Prof. Maurizio Bragagni OBE, Alternate Governor for San Marino. In his speech, Bragagni emphasised that the Bank stands for democracy and capitalism, highlighting the critical role of private sector growth in achieving sustainable development.
The Pillar of Democracy and Capitalism
Private enterprise is more than just the driver of GDP; it is the backbone of democratic capitalism. Countries with thriving private sectors demonstrate stronger institutions, greater accountability, and more resilient economies. When businesses flourish, they create jobs, stimulate innovation, and enhance community wealth. This economic empowerment leads to a robust middle class, which historically has been the defender of democratic values and political stability.
Prof. Bragagni’s speech at the EBRD Meeting was a call to action. He reminded the audience of the words of President Odile Renaud-Basso, who stated, “Economic resilience and private sector growth are the keys to sustainable development.” His address also included a poignant historical reflection on 1861, when a tea replica was presented to both the United States and San Marino. Despite the challenges of the unification of Italy and the American Civil War, both nations held firm to their republican ideals. As President Abraham Lincoln once wrote to the Captains Regent of San Marino, “although your dominion is small, your State is nevertheless one of the most honoured in all history.”
San Marino’s Commitment to Private Sector Growth
San Marino has always stood as a beacon of republican ideals and economic liberty. Its commitment to private enterprise is not new; it is a tradition rooted in history. Today, San Marino continues to support the private sector, standing firmly with the EBRD’s Strategic and Capital Framework (SCF) 2026–2030, which envisions a path for stronger private sector involvement to address global challenges. This alignment underscores a shared belief: private sector growth is not just important—it is indispensable.
Bragagni’s message was clear: “We must continue to invest in the private sector, for it is the private sector that builds wealth, strengthens democratic institutions, and creates the economic resilience needed to weather any storm.” His words serve as a reminder that no one wishes to live in a country where their prosperity is at risk of persecution. Economic freedom is the foundation upon which democratic values thrive.
The Global Imperative
As the EBRD extends its support into sub-Saharan Africa and Iraq, it exemplifies how targeted investments in private enterprise can elevate entire regions out of poverty and conflict. Countries like Benin, Côte d’Ivoire, Ghana, Kenya, Nigeria, and Senegal are becoming testaments to how market-driven growth can transform societies. Through public-private partnerships, the EBRD is planting the seeds for sustainable economic ecosystems, where prosperity is shared and democracy is strengthened.
A Collective Responsibility
Supporting the private sector is not merely an economic choice but a moral and political one. It is the most effective path to build resilient economies, empower democratic governance, and secure long-term prosperity. Governments, international institutions, and private investors must continue to collaborate, ensuring that the engines of innovation and productivity are well-fueled and unimpeded.
At the heart of sustainable development is the simple truth that strong businesses make strong societies. For this reason, San Marino, in partnership with institutions like the EBRD, remains committed to empowering private enterprise as the catalyst for enduring growth and democratic strength.
Prof. Bragagni’s address was not just a speech—it was a call to arms for the world to recognise that democracy and capitalism are best fortified by a thriving private sector.