Books that discuss issues and potential solutions in public policies, economics, geopolitics and socio-welfare have always been a personal favorite. My latest read, The Future of Capitalism by Paul Collier now joins that list.
The book, with four parts, is exhaustive and structured beautifully. Though the economic jargon may mean you have to read some parts of the book twice over! I certainly did.
The first section of the book sets the context and discusses how metro cities like Tokyo, London, and New York are different from cities like Detroit and Sheffield. The rising economic divide between the two has created a political divide: metro cities seem to favor the left and cities like Detroit seem to favor the right.
The second section addresses the foundations of morality, the difference between wants and oughts, and how humans crave things other than money. Humans crave trust, and reciprocity just as much as we want money. Collier talks about the ethical state, firm, and the institution of the family.
What caught my attention was what Collier called the “duty of the firm”. Collier writes that companies have a responsibility to do the best for society and not just what is best for shareholders. At heart, employees also want more than a paycheck from a job. They want to do work that leaves the world a better place. Just as companies have a responsibility, the state too has a responsibility to aid businesses.
The third section was undoubtedly the most interesting. Collier talks about the Henry George Theorem, improving the education system in low-income areas, and the relationship between the state and families. The state has a responsibility to support the institution of the family and support the most vulnerable sections of society, such as children with single parents and senior citizens.
The fourth section is a summation of the three sections. While the book talks about great policies, implementing them is infinitely harder than writing about them. But this isn’t a book for members of the government. It is for citizens to educate themselves and demand better policies of their leaders. For anyone interested in understanding the importance of public policy, international relations, and the economic divide, this is a must-read! The policies suggested by Collier hold in theory. How well they might be implemented still remains to be seen.