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The precipitous rise in global and national economic inequality, which the inexorable force of globalization promised to address with affluence and abundance for all, has returned with a vengeance. The problem of worsening socioeconomic inequality and how best to ameliorate this pernicious resurgence occupies center stage of national and international politics. This study investigates the coexistence of high rates of economic growth and unparalleled prosperity (including a review of the decline in poverty levels in China and India and many other developing countries) with rises in income and wealth inequality in the United States, China, and India. This book examines the overall effectiveness of the measures taken by these three countries to address such anomalies, and what they should do to tackle the problem of widening inequality. This study breaks new ground by providing an original comparative analysis of the challenges facing the world's three major economies

The United States: why the trigger? -- The Bush and Obama administration's response -- From the American to the European crisis -- The Eurozone's sovereign debt crisis -- Russia: not an exceptional country -- China: from crisis management to rebalancing -- Japan, South Korea and India: impact and recovery -- The Middle-East amidst the global financial crisis -- The Great Recession and the world's poorest -- G-20 world: economic governance for the post-crisis world

The Asian financial crisis of 1997-98 shook the global economy. What began as a localized currency crisis soon engulfed the entire Asian region. What went wrong and how did the Asian economies, long considered "miracles", respond? This book provides answers to this and other questions

Prelude to globalization : China (1949-78) and India (1947-91) -- China and India embrace globalization -- China : strategies and patterns of global integration -- India : strategies and patterns of global integration -- Sino-Indian relations : partners, friends or rivals? -- India and the United States : from estrangement to engagement -- The rise of China and its implications for the United States -- China and India : future challenges and opportunities.

An assessment of Modi's economic policies ("Modinomics") shows that the gap between intentions and outcomes remains wide because Modinomics has been too cautious and contradictory to overcome the unusual structural challenges facing India's economy. Moreover, the contradictions of Modinomics, which privileges trade protectionism and selective financial-sector liberalization, limits the potential gains from deeper global economic integration. This article argues that deepening economic reforms, including integration into the global economy, can help mitigate the structural impediments facing the Indian economy.

Excerpts from Current History essays on major milestones, published two decades ago.

Jagdish Bhagwati and Arvind Panagariya, Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries. New York: Public Affairs, 2014, pp. 280, US$28.99. Jean Dreze and Amartya Sen, An Uncertain Glory: India and its Contradictions. Princeton: Princeton University Press, 2013, pp. 448, Paperback US$19.95, Hardcover US$29.95.

French economist Thomas Piketty's bestseller, Capital in the TwentyFirst Century, provocatively claims that the widening income inequalities in the advanced economies (indeed, widening income inequality worldwide), is fundamentally rooted in the exigencies of the capitalist system. Specifically, capitalism operates according to inexorable laws – in Piketty's succinct formulation as r>g. That is, "r" is the rate of return on capital whereas "g" is the rate of economic growth. However, "the central contradiction of capitalism" is that the rate of return on capital (r) will always exceed the rate of economic growth (g). Because the rate of return on capital is higher than the economy's overall rate of growth, widening income inequality is inherent to capitalism. Drawing on Marx's insight that the returns on capital (which to Piketty is mainly wealth in the form of financial assets and equity) tend to be far greater than the growth rate of the economy, Piketty concludes that the owners of equity will always see their wealth grow much faster than those depended on earning income from labour (Table 1). And, since capital tends to be concentrated in fewer hands while income generated from labour is more broadly dispersed, it is hardly surprising that the capital-owning class have seen their incomes and overall wealth grow at an exponential rate, whereas those who sell their labour for a living have seen their incomes either stagnate or decline in real purchasing terms.

India has been a major beneficiary of economic globalisation. Yet, integration into the global economy has also made India vulnerable to the unpredictable swings in market sentiment. Nevertheless, the ultimate effects of cross-border economic forces also depend on the robustness of domestic policies. Potential vulnerabilities such as disruption in trade or financial flows can be mitigated by sound macroeconomic policies. Although 'licence raj' and 'export pessimism' is now a thing of the past, India's quasi-protectionist policies, coupled with the failure to deepen its integration into the global economy, have made the economy increasingly vulnerable to external forces—as seen when the United States Federal Reserve announced its decision to unwind its stimulus programme in mid-2013, resulting in deep sell-offs in emerging economies, especially India's currency, bond and equity markets.