Description
?Excellence is not in perfection but in harmony?. This old dictum holds true in the context of the theory and praxis of state versus market dichotomy. Too much of everything becomes counterproductive. Accumulated quantitative changes give rise to qualitative changes.
The ?laissez-faire? individualism of the classical liberal era led to the growth of industrial capitalism in the nineteenth century with its insistence on minimalist state and free trade. Excessive individualism and liberalism flourished at the cost of equity, justice and social harmony. To cope up with these problems the ?visible hand? of the state was made really visible. In the western democracies it was done through New Deal and welfarism. In the socialist democracies it was done in the name of socialism and in the developing countries through democratic socialism with emphasis on state-led rapid planned development. State intervention did help in controlling the situation. However, in the long run, excessive state interventation, particularly, in the post-Second World War period, in the name of welfare or socialism, or democratic socialism created a case for liberalization, privatization and globalization. This led to the retreat of state and ascendancy of the market. Unrestrained market ascendancy has again precipitated global financial crises necessitating revival of state and state intervention.
To overcome the cyclical process of change the Greek wisdom had suggested to avoid extremes and integrate and harmonize the good features of various institutional arrangements. In our times what is needed is an intellectual and actual harmony between the state and market. The present book is an effort in this direction.
