Robert E. Litan

A pleasant enough book on an ever popular topic, which in India is well known as the liberalisation of the economy. As can be expected from Baumol, who is a master producer of popular texts, the subject is dealt with in an easy, direct manner, with no evidence of brow-beating or impressing with their learning. Also as can be expected, the authors heartly endorse free trade, open borders, foreign direct investment, taking advantage of the principle of relative advantage, and so on. The text provides useful references to the so-called Washington Consensus for developing and newly liberated economies, the conditions attached to IMF assistance, and so on. Of course, the book (published 2007) seems somewhat dated, in the aftermath of the severe stock market crash of 2008, the bank collapses, the growing suspicion of what is perceived as the aggressive postures of an invigorated Chinese economy, and now the debacle of Ukraine. So while the book is a pleasant read, there is no need to accept everything it recommends; strategic needs, national security, and other practical considerations must obviously be always kept in view. The authors' main thesis is that growth is economic essential, and can be attained only through doing new things and new technology, which can only be achieved by private entrepreneurs. Policies must, therefore, be tailored to encourage and support such entities, and the democracy-based free market is the only pathway to such a situation.… (meer)