Capitalism: one size does not suit all

Shaped by many cultures, some forms of capitalism are more palatable to anti-globalization activists than others

Uncertainty abounds over the Anglo-American economic model that has held sway ever since Adam Smith. Excessive debt, growing inequality, increasing costs for health care and retirement as well as large prison populations in the US and UK have raised doubts about its viability. Many nations have sought to adapt capitalism for their specific cultures and needs. Scandinavian and Japanese models value social protections and coordination of corporate governance. Developing nations appreciate the East Asian model with land reforms and ample education. All countries fret about rapid globalization and loss of jobs, but economist Pranab Bardhan notes that social safety nets – including education and retraining, portable health insurance and environmental protection – can help societies adjust to rapid global change. In the end, a nation’s economic systems cannot ignore the context or peculiarities of its society. More than one model of capitalism can thrive, if allowed to adapt to changing global and local circumstances, provided inequality does not become too extreme.

and relatedly... Bagwhati, a very pro-globalization economist argues that Technology, not globalisation, is driving wages down