Books by Kaushik Basu

A volume in the economic development studies section of this series, discussing the relationship between agrarian institutions and economic development and efficiency. Dr Basu is an associate editor of the "Journal of Public Economics" and the "Journal of Development Economics".

Leading economists address the ongoing challenges to economics in theory and practice in a time of political and economic crises.

One of the central tenets of mainstream economics is Adam Smith's proposition that, given certain conditions, self-interested behavior by individuals leads them to the social good, almost as if orchestrated by an invisible hand. This deep insight has, over the past two centuries, been taken out of context, contorted, and used as the cornerstone of free-market orthodoxy. In Beyond the Invisible Hand, Kaushik Basu argues that mainstream economics and its conservative popularizers have misrepresented Smith's insight and hampered our understanding of how economies function, why some economies fail and some succeed, and what the nature and role of state intervention might be. Comparing this view of the invisible hand with the vision described by Kafka--in which individuals pursuing their atomistic interests, devoid of moral compunction, end up creating a world that is mean and miserable--Basu argues for collective action and the need to shift our focus from the efficient society to one that is also fair. Using analytic tools from mainstream economics, the book challenges some of the precepts and propositions of mainstream economics. It maintains that, by ignoring the role of culture and custom, traditional economics promotes the view that the current system is the only viable one, thereby serving the interests of those who do well by this system. Beyond the Invisible Hand challenges readers to fundamentally rethink the assumptions underlying modern economic thought and proves that a more equitable society is both possible and sustainable, and hence worth striving for. By scrutinizing Adam Smith's theory, this impassioned critique of contemporary mainstream economics debunks traditional beliefs regarding best economic practices, self-interest, and the social good.

'The Retreat of Democracy' presents an expanded and reworked selection of Basu's best journalistic and academic writings on political and economic themes since the late 1990s. In addition to Basus critical essays on globalization and democracy, the book also moves onto wider terrain to ideas in economics, anthropological observations on social norms, the role of culture, and travel in India and abroad. While the essays range from studies on major economists such as Amartya Sen and Joseph Stiglitz, to humorous encounters with Indian bureaucracy, two recurring themes run thoughout: first, that the ultimate objective of policy-making must be the progress of the disadvantaged, and ignoring market laws and individual incentives courts failure; second, that for the successful crafting of economic policy it is important to recognize markets as embedded in specific cultures and social norms. This volume is a clear, intelligible and highly engaging showcase of Basus global and humanistic views on politics, economics and democracy.