In Pursuit of Development Globalization, the Nordic model and the economics of belonging — Martin Sandbu
Martin Sandbu has an exciting new book, The Economics of Belonging: A Radical Plan to Win Back the Left Behind and Achieve Prosperity for All (Princeton University Press).
Martin argues that the western social order has rested on three crucial pillars. First, political principles centered on individual rights, equality before the law, robust and independent institutions and regular, free and meaningful elections.
The second pillar consists of a social market economy, that is a capitalist system in which prosperity is broadly shared. And the third pillar is economic and political openness to the outside world for the joint realization of this social order.
Much of the political debate in recent years, especially in the United States and in parts of Europe, has questioned the purpose and value of this western economic and political order that has been in place since 1945. This has been in part been fueled by widening income inequality, growing political polarization, and the rise of populist leaders. Some have also blamed globalization for such discontentment.
But Martin argues that it is not globalization that is to blame for many of our current problems, but rather technological change and flawed domestic policies that have made it difficult for some groups in society to particulate fully and justly in the economy. The real problem, he writes, is that “The western social order no longer fulfills its promise of an economy that provides a good place for everyone."
Martin Sandbu is the European Economics Commentator for the Financial Times. He also writes Free Lunch, the FT's weekly newsletter on the global economic policy debate.
Host
Dan Banik (@danbanik @GlobalDevPod)
Subscribe: