"His outlook is broadly pro-market, as one might expect, given his academic position at the University of Chicago, spiritual home of free-market economic orthodoxy. But he has also won a reputation as a teller of uncomfortable economic truths. [...] An eclectic thinker, Rajan has often strayed outside the realms of economics; indeed, it was his willingness to talk about the importance of social tolerance that got him into trouble in India. Even so, The Third Pillar represents a new departure into grand social history, which in its breadth often echoes big-picture theorists such as Barrington Moore and Francis Fukuyama and their attempts to tease apart the long-term tensions between capitalism and democracy. [...] Given the severity of the trends he describes, Rajan’s prescriptions, which he dubs 'inclusive localism', can seem modest [...] Rajan’s pro-competitive instincts and balanced, cautious localism are therefore unlikely to excite the passions of progressives such as Ocasio-Cortez. That said, he does offer some more radical ideas, especially when he discusses how to rein in the problem of what he dubs 'corporate gigantism' with much more forceful antitrust policies."

"In his insightful and impressive book The Third Pillar, the University of Chicago economist Raghuram Rajan calls for 'bringing back the largely self-governing community as the locus of self-determination, identity and cohesiveness.' Mr. Rajan, a former Governor of the Reserve Bank of India, is a high priest of financial economics and central banking. His decision to champion county craft fairs and garbage collection is all the more compelling because it is unexpected. [...] His alternative to the new populisms is an 'inclusive localism.' In putting forth his proposals, Mr. Rajan is more concrete than many writers, from Charles Murray to Yuval Levin, who also extol strong communities, because he focuses on empowering local governments. [...] Local governments function well partially because they concentrate on clear deliverables, like safety and clean streets. Expanding their range of responsibilities endangers that clarity of mission. But since local governments are functioning much better than Washington, Mr. Rajan may be right that Washington should shrink back and let them do more. Certainly, we should try the experiment. And as local governments get to work, they could certainly use the help of more thinkers of Mr. Rajan’s caliber."

"In a compelling new book, The Third Pillar, he argues that communities are not so much a source of friction inhibiting the smooth operation of the global economy, as an indispensable part of a healthy society. Mr. Rajan believes in markets but has often made himself the bearer of awkward economic news. [...] That community matters might seem a banal observation to non-economists. But it sits inconveniently alongside many aspects of an economist’s worldview. Economic progress has often meant the replacement of personal, community interactions with efficient but more impersonal ones. The less sentimental people are about where they live or who they work for, the more readily they can move in response to market pressures, boosting productivity and limiting the damage from creative destruction. [...] Mr Rajan acknowledges the negative effect of tight-knit communities. The book provides a short history of the evolution of community, state and market in Europe, which begins in the stifling world of the feudal manor. [...] As the world became more interconnected, states and markets assumed roles once played by the community—from insuring against hardship to funding investment. [...] Promising solutions are hard to come by. Still, Mr Rajan offers reasonable recommendations."

"His overarching point: 'Many of the economic and politicalconcerns today across the world, including the rise of populist nationalism and radical movements of the left, can be traced to the diminution of the community. The state and markets have expanded their powers and reach in tandem, and left the community relatively powerless to face the full and uneven brunt of technological change.' It is a grand, sweeping argument, and much of the book is given over to the history of how we got here and a mini guide to capitalism. Rajan, a critic trying to save capitalism from itself, makes his point inaccessible, clear prose. [...] Aside from handing back power to communities, maybe even allowing them to decide their own welfare policy, Rajan has a few other remedies. He encourages countries to increase immigration, but also to improve how they integrate immigrants. Untrammelled financial globalisation, he says, should be limited and mega-mergers should be discouraged. All interesting suggestions, although in the face of such an enormous problem they seem rather underwhelming."