Dialogue between Paul Collier and Jose Ignacio Torreblanca
When territories are left behind: responses from a new economy
On 27 October 2025, the Rafael del Pino Foundation organised the dialogue «When territories are left behind: responses from a new economy» in which Paul Collier and Jose Ignacio Torreblanca took part.
Sir Paul Collier is one of the most influential voices in contemporary economic thought and an international authority on the study of development, governance and regional renewal. Paul Collier is Professor of Economics and Public Policy at the Blavatnik School of Government, University of Oxford, where he is also Academic Director of the International Growth Centre, a joint initiative between the London School of Economics and Oxford University. He is also on the board of the Natural Resource Governance Institute, where he promotes responsible and sustainable natural resource management. His extensive academic work has been instrumental in contributing to the understanding of the challenges of inclusive growth and social cohesion. Among his most renowned publications are The Plundered Planet: How to reconcile prosperity with nature and Plundered Nations?, which focus on the relationship between prosperity and sustainability; The Future of Capitalism: Facing the New Anxieties, a profound reflection on the tensions of contemporary capitalism; and Greed is Dead, written with Professor Sir John Kay, in which he argues the need to restore a sense of community in the face of polarisation and excessive individualism. In his most recent work, “Left Behind” (Debate, 2025), Sir Paul offers a hopeful look at the possibilities for renewal in disadvantaged regions and communities, combining academic rigour with practical proposals. His advice to local and national governments on territorial development policies testifies to his commitment to the real application of economic knowledge in the service of social welfare.
Dr. José-Ignacio Torreblanca is a senior advisor to the Madrid Office and a distinguished member in geo-economics and technology of the European Council on Foreign Relations (ECFR). He is currently a full professor at the Universidad Nacional de Educación a Distancia (UNED) in Madrid, where he teaches undergraduate and postgraduate courses on the EU political system and the EU as an international actor.
Summary:
On 27 October last, the Rafael del Pino Foundation brought together in Madrid the British economist Paul Collier, Professor at Oxford University, and the political scientist José Ignacio Torreblanca to reflect on a crucial question for advanced democracies: why do some territories prosper while others stagnate or feel “left behind”?
The dialogue, entitled “When territories are left behind: responses from a new economy”.”, was an invitation to look at the economy from a moral, community and territorial dimension. Collier - author of works such as The Bottom Billion y The Future of Capitalism- presented his vision on how to rebuild the social contract and rescue the idea of shared purpose in the face of inequality and disaffection.
From homo economicus to social being
Collier began by dismantling one of the pillars of classical economic thought: the homo economicus, The rational, calculating and selfish individual who maximises personal gain. “If you met him,” he joked, "you wouldn't trust him with your wallet. For Collier, that model describes an economic sociopath rather than a human being.
The economy, he argued, cannot be understood apart from the bonds of cooperation, trust and collective learning that characterise our species. Our survival as humans,“ he recalled, ”depended on our ability to work together and learn fast. And that cooperative learning, he added, is exactly what is in short supply in many of our fragmented societies.
Social capital: the invisible asset that sustains development
One of Collier's central concepts is social capital, understood as the fabric of trust and cooperation that allows communities to function. Following the lead of political scientist Robert Putnam, Collier recalled how seemingly similar regions can diverge over decades according to the strength of their social ties.
The example of Italy - with a prosperous north and a lagging south - illustrates how habits of cooperation and partnership, even in activities as simple as a choir or a cooperative, create the basis for a vibrant economy. “The key is not just GDP, but ‘we’ versus ‘I’,” he stressed.
However, this social capital is easily eroded. Collier warned how social media, far from uniting, has multiplied polarisation: “Zuckerberg thought he was creating a global community. What he built was a digital jungle that tyrannises our teenagers”.
The British mirror: territorial inequality and broken mobility
From his experience in the UK, Collier offered an uncomfortable diagnosis: territorial inequality and lack of social mobility are destroying the meritocratic promise. Cities like Sheffield, his birthplace, epitomise that decline. When I grew up there,“ he recalled, ”someone like me could get to Oxford. Today, the chances are less.
The contrast between London and northern cities reflects a country where the geography of talent and capital concentrates opportunity in a few spots, leaving millions trapped in local economies without investment or hope. The tragedy,“ he lamented, ”is that provincial universities are being stifled while Oxford or Cambridge are showered with multi-million dollar endowments".
The state that does not learn
One of the most critical passages of the conversation was the description of the British system. Collier denounced a centralised, arrogant bureaucracy with no long-term vision, epitomised by the Treasury, which, he said, “behaves like a monastery: no one goes in or out, and no one thinks beyond one year”. The consequence: disastrous projects such as the high-speed rail line. HS2, symbol of the disconnection between technocracy and territory.
Against this model, he proposed an alternative based on rapid learning and decentralised experimentation: “In a world of uncertainty, the right answer is often ‘we don't know’. The important thing is to create structures that learn fast.
His favourite example: Deng Xiaoping, who transformed China through controlled local experiments that encouraged innovation from below. “That was adaptive learning in action,” Collier summarised, though he warned that the return of centralised control under Xi Jinping threatens to reverse those achievements.
The Basque model: cooperation, purpose and shared success
To illustrate that the combination of democracy, social cohesion and prosperity is possible, Collier highlighted the case of Mondragon in the Basque Country. Born from the impulse of a priest, José María Arizmendiarrieta, the cooperative group was built on principles of solidarity and participation: limited salaries (maximum 5 to 1 between the highest and the lowest), social reinvestment and inter-company collaboration.
This model, he argued, allowed not only to withstand industrial crises, but also to turn cooperation into a competitive advantage. From there,“ he recalled, ‘came the collective capacity that made it possible to attract even the Guggenheim to Bilbao. That was the victory of the ’we”".
From distributive justice to contributive justice
The closing of the dialogue revolved around a new concept in the economic debate: contributory justice, coined by the philosopher Michael Sandel. It is not just about sharing wealth, but about recognising the moral value of contributing to the common good. Collier summarised the necessary conditions: equality of voice, equality of respect and the material ability to participate.
The example he ended with was powerful: the founding of Sheffield University in 1904. Steelworkers voluntarily donated a week's wages, matched pound for pound by local employers, to build a university “for their children and grandchildren”. This pact - between workers and employers - embodied true contributory justice: everyone felt responsible for the future.
A new moral contract for the economy
Collier's message was clear: the economy needs to recover moral purpose, trust and collective learning. Neither markets alone nor technocratic states can deliver inclusive prosperity without rebuilding a sense of belonging and shared duty.
In times of polarisation, Left Behind -his latest book - offers not only a diagnosis of decline, but a prescription: to move from the “I” to the “we”. Only in this way, he insisted, will societies be able to transform hopelessness into “credible hope”, the most powerful antidote to populism and social fracture.
The Rafael del Pino Foundation is not responsible for the comments, opinions or statements made by the people who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their sole responsibility. The contents included in the summary of this conference are the result of the debates held at the meeting held for this purpose at the Foundation and are the responsibility of their authors.
The Rafael del Pino Foundation is not responsible for any comments, opinions or statements made by third parties. In this respect, the FRP is not obliged to monitor the views expressed by such third parties who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their own responsibility. The contents included in the summary of this conference are the result of the discussions that took place during the conference organised for this purpose at the Foundation and are the sole responsibility of its authors.
