The Third Pillar
How Markets and the State Leave the Community Behind
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Narrated by:
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Jason Culp
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Raghuram Rajan
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By:
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Raghuram Rajan
About this listen
Shortlisted for the Financial Times/McKinsey Business Book of the Year Award
From one of the most important economic thinkers of our time, a brilliant and far-seeing analysis of the current populist backlash against globalization.
Raghuram Rajan, distinguished University of Chicago professor, former IMF chief economist, head of India's central bank, and author of the 2010 FT-Goldman-Sachs Book of the Year Fault Lines, has an unparalleled vantage point onto the social and economic consequences of globalization and their ultimate effect on our politics. In The Third Pillar, he offers up a magnificent big-picture framework for understanding how these three forces - the state, markets, and our communities - interact, why things begin to break down, and how we can find our way back to a more secure and stable plane.
The "third pillar" of the title is the community we live in. Economists all too often understand their field as the relationship between markets and the state, and they leave squishy social issues for other people. That's not just myopic, Rajan argues; it's dangerous. All economics is actually socioeconomics - all markets are embedded in a web of human relations, values, and norms. As he shows, throughout history, technological phase shifts have ripped the market out of those old webs and led to violent backlashes, and to what we now call populism. Eventually, a new equilibrium is reached, but it can be ugly and messy, especially if done wrong.
Right now, we're doing it wrong. As markets scale up, the state scales up with it, concentrating economic and political power in flourishing central hubs and leaving the periphery to decompose, figuratively and even literally. Instead, Rajan offers a way to rethink the relationship between the market and civil society and argues for a return to strengthening and empowering local communities as an antidote to growing despair and unrest. Rajan is not a doctrinaire conservative, so his ultimate argument that decision-making has to be devolved to the grass roots or our democracy will continue to wither is sure to be provocative. But even setting aside its solutions, The Third Pillar is a masterpiece of explication, an audiobook that will be a classic of its kind for its offering of a wise, authoritative, and humane explanation of the forces that have wrought such a sea change in our lives.
©2019 Raghuram Rajan (P)2019 Penguin AudioListeners also enjoyed...
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Critic reviews
“Compelling...urges economists to recognize a blind spot. The places where people grow up, live and work are not simply agglomerations of economic activity. They shape people’s identities.... Having been insufficiently mindful of this over the past few decades, business and government leaders may have little option but to brace themselves for frustrated communities demanding change.” (The Economist)
"A welcome survey of a big-picture problem: Rajan proposes a rebalancing to be brought about by decentralized politics, diverse immigration, and other measures that, though controversial, certainly merit discussion.” (Kirkus Reviews)
“Raghuram Rajan has done it again. Fresh, insightful and engaging, The Third Pillar offers a brilliant reckoning with one of today’s most important and potentially crippling challenges. He does more than analyze the unbalance that has developed among the three pillars that support society; he also tells us what’s needed to shift our prospects in favor of the exciting upside of technological progress that empowers, enables and enriches the many; and away from political anger, alienation and political radicalization. His clear and compelling case goes well beyond protecting the vulnerable. It’s also, critically, about enhancing the whole.” (Mohamed El-Erian, author of When Markets Collide and The Only Game in Town)
“My parents lived through the Great Depression, the rise of Fascism, and World War II. I thought I was brought up in a world organized in a fundamentally different way. I was wrong. We all need to start thinking about this issue right now and this book is a place to begin.” (James A. Robinson, professor, University of Chicago, coauthor of Why Nations Fail)
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- Why Aid Is Not Working and How There Is a Better Way for Africa
- By: Dambisa Moyo, Niall Ferguson - foreword
- Narrated by: Mike Chamberlain
- Length: 6 hrs and 29 mins
- Unabridged
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A national best-seller, Dead Aid unflinchingly confronts one of the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth. In fact, poverty levels continue to escalate and growth rates have steadily declined - and millions continue to suffer. Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Dambisa Moyo offers a bold new road map for financing the development of the world's poorest countries.
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Dangerous / Right Wing US view
- By David O'Donovan on 03-05-19
By: Dambisa Moyo, and others
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Fault Lines
- How Hidden Fractures Still Threaten the World's Economy
- By: Raghuram Rajan
- Narrated by: Richard Davidson
- Length: 12 hrs and 58 mins
- Unabridged
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Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
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A REAL SNOOZER
- By Frank on 12-02-10
By: Raghuram Rajan
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The Fourth Revolution
- The Global Race to Reinvent the State
- By: John Micklethwait, Adrian Wooldridge
- Narrated by: Chris Sorensen
- Length: 10 hrs and 5 mins
- Unabridged
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From the best-selling authors of The Right Nation, a visionary argument that our current crisis in government is nothing less than the fourth radical transition in the history of the nation-state. Dysfunctional government: It' s become a cliché, and most of us are resigned to the fact that nothing is ever going to change. As John Micklethwait and Adrian Wooldridge show us, that is a seriously limited view of things. In fact, there have been three great revolutions in government in the history of the modern world.
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A must read for everyone wondering whats going?
- By Truth-be-told on 03-30-15
By: John Micklethwait, and others
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Building the New American Economy
- Smart, Fair, and Sustainable
- By: Jeffrey D. Sachs, Bernie Sanders - foreward
- Narrated by: Rudy Sanda
- Length: 4 hrs and 13 mins
- Unabridged
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With a nation seemingly more divided than ever, many worry that Americans risk losing ground on solving the complex, interrelated problems the country faces - including rising inequality, the specter of climate change, astronomical health care costs, and economic stagnation. The renowned economist Jeffrey D. Sachs offers a practical approach to move America toward a new consensus: sustainable development.
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If only....
- By Baboo TH on 01-24-18
By: Jeffrey D. Sachs, and others
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The Great Degeneration
- How Institutions Decay and Economies Die
- By: Niall Ferguson
- Narrated by: Paul Slack
- Length: 4 hrs and 18 mins
- Unabridged
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Best-selling author and world-renowned historian Niall Ferguson has won widespread acclaim for thought-provoking works such as Civilization and High Financier. The Great Degeneration tackles nothing less than the decline of Western civilization. Ferguson posits that slowing growth, outrageous debt, and antisocial behavior are contributing to the erosion of the West’s once rock-solid foundations. Ferguson excavates the causes and shows how heroic leadership and radical reform are needed to right the course.
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Superb as always!
- By Ivanhoe on 08-28-17
By: Niall Ferguson
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The White Man's Burden
- Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good
- By: William Easterly
- Narrated by: Mike Chamberlain
- Length: 14 hrs and 35 mins
- Unabridged
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In his previous book, The Elusive Quest for Growth, William Easterly criticized the utter ineffectiveness of Western organizations to mitigate global poverty, and he was promptly fired by his then-employer, the World Bank. The White Man's Burden is his widely anticipated counterpunch - a brilliant and blistering indictment of the West's economic policies for the world's poor.
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A Bit Repetitive
- By Amazon Customer on 04-27-19
By: William Easterly
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Right Here, Right Now
- Politics and Leadership in the Age of Disruption
- By: Stephen J. Harper
- Narrated by: Stephen J. Harper
- Length: 6 hrs and 32 mins
- Unabridged
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The world is in flux. Disruptive technologies, ideas, and politicians are challenging business models, norms, and political conventions everywhere. How we, as leaders in business and politics, choose to respond matters greatly. Right Here, Right Now sets out a pragmatic, forward-looking vision for leaders in business and politics by analyzing how economic, social, and public policy trends - including globalized movements of capital, goods, and services, and labor - have affected our economies, communities, and governments.
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Excellent book on Politics for Canadians AND Americans
- By John Fernandes on 10-19-18
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How the Other Half Banks
- Exclusion, Exploitation, and the Threat to Democracy
- By: Mehrsa Baradaran
- Narrated by: Priya Ayyar
- Length: 9 hrs and 36 mins
- Unabridged
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The United States has two separate banking systems today - one serving the well-to-do and another exploiting everyone else. How the Other Half Banks contributes to the growing conversation on American inequality by highlighting one of its prime causes: unequal credit. Mehrsa Baradaran examines how a significant portion of the population, deserted by banks, is forced to wander through a Wild West of payday lenders and check-cashing services to cover emergency expenses and pay for necessities - all thanks to deregulation that began in the 1970s.
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The Borrowers at the Fringe
- By Darwin8u on 09-13-16
By: Mehrsa Baradaran
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An Extraordinary Time
- The End of the Postwar Boom and the Return of the Ordinary Economy
- By: Marc Levinson
- Narrated by: James Foster
- Length: 10 hrs and 55 mins
- Unabridged
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A sweeping reappraisal of the last sixty years of world history, An Extraordinary Time describes how the postwar economic boom dissipated, undermining faith in government, destabilizing the global financial system, and forcing us to come to terms with how tumultuous our economy really is.
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Good review of crucial turning point in history
- By Philo on 11-22-16
By: Marc Levinson
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The Impulse Society
- America in the Age of Instant Gratification
- By: Paul Roberts
- Narrated by: Edoardo Ballerini
- Length: 9 hrs and 39 mins
- Unabridged
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Paul Robert digs down to the economic roots of the problem, shows how it has metastisized to affect every facet of our lives and our ability to navigate the future. In clear, cogent prose that mixes illuminating analysis and vibrant reporting, Roberts not only tells the fascinating story of how the impulse society came to be, but shows how, perhaps, a healthier society may still be possible.
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A Must-Listen for Millenials
- By Doug - Audible on 03-31-15
By: Paul Roberts
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Economics for the Common Good
- By: Jean Tirole, Steven Rendell - translator
- Narrated by: Jonathan Davis
- Length: 18 hrs and 54 mins
- Unabridged
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When Jean Tirole won the 2014 Nobel Prize in Economics, he suddenly found himself being stopped in the street by complete strangers and asked to comment on issues of the day, no matter how distant from his own areas of research. His transformation from academic economist to public intellectual prompted him to reflect further on the role economists and their discipline play in society. The result is Economics for the Common Good, a passionate manifesto for a world in which economics, far from being a "dismal science," is a positive force for the common good.
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A Great Overview of the Challenges of Modern Econ
- By Zach Sullivan on 08-06-18
By: Jean Tirole, and others
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Putinomics
- Money and Power in Resurgent Russia
- By: Chris Miller
- Narrated by: Traber Burns
- Length: 8 hrs and 4 mins
- Unabridged
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In Putinomics, Chris Miller examines the making of Russian economic policy since Vladimir Putin took power in 1999. Miller argues that Putin's economic strategy has functioned far more effectively than most Westerners realize. While acknowledging that part of Putin's successes - above all, quadrupling per capita GDP in just a decade and a half - can be attributed to cashing in on high oil prices, Miller details the government policies that have also been fundamental to Russia's growth.
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Go find something better
- By Anonymous User on 08-04-21
By: Chris Miller
What listeners say about The Third Pillar
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- frenchie wannabe
- 01-23-21
Excellent socioeconomic analysis
This book presents an excellent historical analysis of the evolution of society from a tribal nature to the three pillars as defined in the book (markets, state, and community). It is interesting how the separation of those pillars has led to different levels of progress across countries as described in the book. The policy prescriptions for how the US may achieve balance between the pillars are thoughtful yet intuitive. The call to action is inspiring. It highlights the importance of balance and the need for all of us to work towards progress to address the problems of our time including inequality, racial justice, and climate change.
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- Denny
- 07-19-19
Eyeopeing, Detailed, and Solution Oriented
Great book describing a solution to inprove life in our society. Written by an respected academic for the average person to understand. To the author, Thank you for putting this together. To the reader, you will not be disappointed.
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- Steve Guillian
- 03-26-19
Very important topic
I think the author could have fleshed out his very important idea about rebuilding community as a force in society. Hard to do. Important book as far as it goes. Begs for deeper discussion...
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1 person found this helpful
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- Thomas W. Wartman
- 03-09-20
Excellent listen
Very well thought out interesting listen. I have listened to many economic and other market business books, this one is definitely on the top of that list.
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- Sutapa Chattopadhyay
- 07-02-19
Policy prescription seems to be impractical
The history lessons in the first part was great. History of the economic development in Europe, UK and America and later China, India and other BRICs countries.
The policy prescription of 'strengthen community' is very vague and wishy washy. The fact that we must allow 'ethnic micro-societies' but make sure these communities are fair. How do you do that, without interfering? Must social behavior now be made into policy? Isn't the history of policy making strewn with examples of failed experiments like this? Note that I am not a libertarian by any means. I just found the policy prescriptions wishy-washy. We know that the community must be strengthened. How does Washington go about doing it, when it has failed repeatedly to even understand what people want.?
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2 people found this helpful
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- Amaze
- 05-17-19
Unrealistic, insipid
Rajan's previous work, Fault Lines, was very impressive. I read it twice. This, on the other hand, is weak and unrealistic. He focuses on communities, primarily of the local variety. But his own resume contradicts this model. Born in India, teaching at the University of Chicago. and having held other academic and bureaucratic appointments, this is not a guy rooted in a local community.
I personally have lived in numerous US states, different neighborhoods within particular cities, and a few foreign countries. I'm grateful for this mobility. And there are people I know who are much more mobile than I am.
So, empirically, I would say that local communities are a vestige of a former time. To elevate them to a "third pillar" of society is unrealistic. It's like the author was searching for some kind of hypothesis and he came up with this dud.
The narrator doesn't help. His reading style is bland, to the point of being soporific. Maybe he's as bored by this book as I am.
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3 people found this helpful
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- Viv
- 07-18-19
PHD Thesis vs Book
Read the book with great expectations. It felt more like a dissertation than a book. Though the last 6 chapters got my attention. Maybe fast forward. I sure hope there is another edition but condensed.
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