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Books

Mandatory tion laws. However, the

reading GOOD ECONOMICS FOR HARD authors provide impres-
TIMES: BETTER ANSWERS TO
sive evidence that the vast
OUR BIGGEST PROBLEMS
Abhijit Banerjee & Esther Duflo majority in every country,
except people in extraordi-
HIS EXTRAOR- JUGGERNAUT nary peril (“in the mouth
DINARY volume, Rs.393 Pages 320 of the shark”) and only a
Teven though it’s small percentage willing to
authored by Abhijit Ba- bear extremely hard work
nerjee and Esther Duflo, and emotional alienation,
distinguished professors and Latin America — are are willing migrants. Ac-
at the globally top-ranked beginning to wonder what The virtue of this book cording to evidence and
Massachusetts Institute is next for them. Of course is that the authors polls conducted by the
of Technology and win- in most countries in the believe in testing authors, most people are
ners of the 2019 Nobel affluent West, slowing all assumptions and reluctant migrants even
Prize for Economics, has growth is nothing new at policy prescriptions within national borders,
not received due atten- this point, but what makes through randomised as the mass return of
tion in the Indian media. it particularly worrying control trials migrants to their vil-
Although an avid reader of is the rapid fraying of the lages during the current
book reviews, your corre- social contract that we see national lockdown in India
spondent can’t recall even across these countries. all assumptions, opinions has proved.
one memorable critique We seem to be back in and policy prescriptions Likewise on foreign
of this insightful volume the Dickensian world of through RCTs (ran- trade, although the
praised to the skies by a Hard Times, with the domised control trials) overwhelming majority
host of renowned econo- haves facing off against to ascertain public and of economists polled by
mists including French alienated have-nots, with expert opinion on issues the authors are in favour
economist Thomas Piketty no resolution in sight,” of public import. RCTs of free trade because of
(“wonderfully refreshing”), write the authors in the provide readers a broader Ricardo’s famous theory
Raghuram Rajan (“teach- introductory chapter titled perspective of the pressing of comparative advantage,
ers you always wished ‘MEGA: Make Economics challenges of our time and popular antipathy in large
for, but never had”) and Great Again.’ a better understanding of diversified economies such
American Nobel laureate It’s noteworthy that their complexity than 800 as the US — where imports
Robert Solow (“balances these words were written word essays and talking account for 2.5 percent of
neat generalities of theory last year before the global heads on television can GDP — is based upon the
against the enormous outbreak of the Covid-19 ever do. The USP (unique citizenry willing to pay
variety of deviations of pandemic and lockdown sales proposition) of Good modestly higher prices for
standard assumptions”). of national economies Economics for Hard manufactures and services
This work should be around the world. One Times (GEHT) is that the to protect American jobs.
compulsory reading for all can safely assume that most debated challenges of Free trade works in
Indian academics, media these contemporary hard our time — immigration, favour of small countries
pundits and formula- times are twice as hard free trade, income inequal- where narrow domestic
tors of public policy. For as they were last year. ity, limits of economic markets don’t allow manu-
the simple reason that it Nevertheless, the issues growth, environment facturing companies to
addresses the important addressed and debated in despoliation, artificial attain economies of scale.
hot-button issues of the this thought-provoking, intelligence, robotics and This explains the exports-
new millennium. “The go- intellectually stimulating unemployment, free mar- led growth and prosperity
go years of global growth, compendium are as im- kets and universal basic of less populous countries
fed by trade expansion and portant now as they were income — are thoroughly such as South Korea, Tai-
China’s amazing economic a year ago. subjected to RCTs. wan and latterly Vietnam.
success, may be over what The virtue of this For instance, the And Indians should bear
with China’s growth slow- volume — and the prime popular belief in the US in mind that Mahatma
ing and trade wars igniting reason why the authors endorsed by President Gandhi was in favour
everywhere. Countries that were jointly awarded the Trump, is that America of self-sufficient village
prospered from the ris- Economics Nobel — is would be flooded if it were republics which require
ing tide — in Asia, Africa that they believe in testing to liberalise its immigra- minimal domestic trade.

94 EDUCATIONWORLD AUGUST 2020