Abstract
When global trends in our economic, political and social sectors become wayward or unpredictable, newer/fresher perspectives to align them into a brighter and sustainable future begin. Raghurajan’s recent work leans in this direction. The 400-page book titled ‘The Third Pillar: How Markets and the State Leave the Community Behind’ is an attempt to orchestrate the community to play catch up with the state and markets and make it a creditable pillar to help achieve the goals of development in a balanced manner.
The volume is divided into three parts—the first one provides an introduction of the emergence of the three pillars, a quick survey of the rise and fall of the state and the market and how the community can help to balance the structures of development. In Rajan’s words, the problem is that ‘the state and markets have expanded their powers and reach in tandem, and left the community relatively powerless to face the full and uneven brunt of technological change’ (preface xiii). The second part brings out the important issues of Information and Communications Technology (ICT) revolution, recounting what populism has brought about, and the need for China and India to avoid falling into the trap of becoming populist nationalists. The third part of the book is more on reforms, balance, reforming of the state and highlighting the role of the communities in a meaningful way.
The author Raghuram G. Rajan is a distinguished professor and has held several lead/important positions in the business, banking and financial sector. His work experience in India and awards in the banking world in America definitely dots the book with examples from both countries. The combination of being an idealist, pragmatic and hands-on/application orientation, be it at the policy level or at the grassroots, comes through disarmingly in his simple and distinct direct style. It is not surprising that Rajan perhaps is one of the few in his field to attempt or take on the problems that the state, market and communities are besieged with and squarely faces the issues by suggesting solutions that could bring out the balance among the three pillars.
Starting by providing a large framework of the players in capitalism—the author claims that the pursuit of capitalism has at present escalated into populist nationalism. The trend is subverting the democratic process. It is at this stage that Rajan places the community as the focal and central position—a third pillar and situates the state and corporations as part of the community.
Communities to which all belong, would require to gear up their civic-ness, harness their power, reinvigorate and engage with the other two pillars meaningfully and effectively. Rajan hypes on ‘Inclusive Localism’ as the possibility of this happening. Inclusive Localism helps towards helping societies/communities gain the strength and empowerment of Civil Society Organisations (CSOs). This is necessary to level the field of play with the other two pillars. By honouring the local cultures and communities, civil societies are recognised and valued and hence become better players in providing equality and balance, which is the consistent theme of the book with some concrete practical and pragmatic solutions. The author claims that if the participation of communities, market and state is balanced, it could change the global structure for successful democratic patterns.
The book also covers China and India in separate chapters as the ‘other half of the world’ and describes their reforms through a quick historical snapshot of their political state and markets, developmental roles and changing communities. The context of both economies is their size and important pace of growth in terms of fastest business and trade, fostering major contributions in the world Gross Domestic Product (GDP) growth. The book gives some examples of the three pillar relationships within China and India through the approach of ‘Inclusive Localism’. It would require deeper analysis for bringing the balance and imbalance of the forces of three pillars to harness not just economic but also socio-politico growth.
Though Rajan’s big picture has a consistent theme, the theoretical and philosophical foundations of the understandings and underpinnings of state, market and CSOs as such specially the communities still require handling of deeper associations. This is more so in terms of what and who will charter the progress of this balance and imbalance and oversee the potential in the context of the ever-changing dynamics of society. Understanding the role of each pillar and harnessing the strengths of each for a better future of communities would perhaps make another book that deals with socio-politico-economical concerns in global development.
Bringing the civil society into focus as a player of substance in the main domain, giving it recognition and potential to provide the much-needed balance is well brought out in the book. However, the depth of how this can be accomplished is perhaps a work still in progress. Ideationally, it is well conceived and still requires much work on the growth of CSOs in a healthy manner.
Banding all CSOs as the third pillar becomes problematic. The capacity capability and convergence with other two pillars are amiss in the book.
This lucid volume could be a text for everyone in the social science field. The kaleidoscope of the book is across social, economic, political, governance and development. If made mandatory for every college-going student, it will give their idealism some hope in the prosperity of future human development by strengthening community relationships. The nature of the problem is global and the solution holds promise. It is not only changing over time as described in the book but answers would also evolve as citizens take responsibility for the task of balancing the three pillars!
The book gives a sense of how the state and markets often create a lopsided and populist leaning and that society must harness its strengths to form some balance between the two. In a way, ‘Empowering Communities’ to do so constitutes the essence of the book. The subject of the book is definitely popular, topical and banks on ‘Inclusive Localism’ as the way to move forward.