Pictures for Author of new book, Saving Capitalism from the Capitalists,
engages audience at WIIT's spring membership social
WIIT was honored to hear an acclaimed scholar of international finance speak at its March 31st, 2004 spring membership social, which was generously hosted by C&M International. Dr. Raghuram Rajan, co-author of the recently published book, Saving Capitalism from the Capitalists, spoke about the need to nurture financial markets worldwide in order to foster entrepreneurialism and elevate the economic status of large numbers of people around the world.
Even in the United States
which is considered to have a well developed financial market, Dr. Rajan explained,
there is always the danger that "incumbents" -- businesses that
are dominant in their industries but nonetheless vulnerable in a global free
market -- will team up with "those who lose" in the rough and tumble
of a market economy to close our borders to free trade. Restricted trade lessens
the pressure on domestic businesses to remain competitive and, likewise, the
need for entrepreneurs to hone new ventures in response to global competition.
In such circumstances, Dr. Rajan concludes, incumbents take measures to thwart
capital flow to entrepreneurs who might otherwise compete.
A lively question-and-answer session followed Dr. Rajan's talk. Dr. Rajan
maintained that the United States has benefited greatly from open trade, and
professed optimism about the prospect for continued growth. At the same time,
there are steps the United States should be undertaking to prepare for global
competition, he added. Among his recommendations, are increased investment
in the education and practical training of youth, periodic training for adults,
and universal health care that is not tied to employment.
Dr. Rajan is Joseph L. Gidwitz Professor of Finance at the University of Chicago,
and is currently on appointment as Economic Counselor and Research Director
at the International Monetary Fund (IMF). In 2003, he received the American
Finance Association's inaugural Fischer Black Prize, to be awarded henceforth
every two years to the financial economist under age 40 who has made the most
significant contribution to the theory and practice of finance.
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