Book review: Raghuram G. Rajan (Ed.), The Third Pillar: How Markets and the State Leave the Community Behind
| Author | Indurekha G. Prakash |
| Date | 01 June 2020 |
| DOI | 10.1177/0019556120921841 |
| Published date | 01 June 2020 |
| Subject Matter | Book Reviews |
Indian Journal of Public
Administration
66(2) 261–272, 2020
© 2020 IIPA
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DOI:10.1177/0019556120921841
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Book Reviews
Raghuram G. Rajan (Ed.), The Third Pillar: How Markets and the
State Leave the Community Behind. HarperCollins, 2019, 434 pp., `799
(Hardbound). P-ISBN: 978-93-5302-839-8; E-ISBN: 978-93-5302-840-4.
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
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