The Third Pillar By Raghuram G. Rajan

The Third Pillar: How Markets and the State Leave the Community Behind by economist Raghuram G. Rajan (Paperback, Penguin Press, February 25 2020; 464 pages) provides a bold critique of global capitalism. Rajan argues that healthy societies require three balanced “pillars”—markets, governments, and local communities. Drawing on history, technology-driven upheavals, and case studies across continents, he explains how community—the often-overlooked third pillar—has been weakened, fueling inequality and populism. Offering a vision of “inclusive localism,” Rajan proposes practical reforms to shift power back to communities, foster social cohesion, and strengthen democratic resilience. A Financial Times/Goldman Sachs Business Book of the Year nominee, this book is essential for students, policymakers, and anyone interested in the future of liberal democracy.