Raghuram Rajan, ex-RBI Governor, on the Overlooked Value of Community

Dr. Raghuram Rajan, former Governor of the Reserve Bank of India, discusses rising inequality, the debt crisis and why community is so often overlooked.

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Why is the value of community so often overlooked relative to the state and markets?

Dr. Raghuram Rajan, Professor of Finance at the University of Chicago Booth School of Business and former Governor of the Reserve Bank of India, discusses how the state, markets and the community have fared through the pandemic, what forces are reshaping community and why addressing inequality needs to be done in a way that doesn’t lever up the system.

The podcast is hosted by Man Group’s Co-Head of Responsible Investment Jason Mitchell.

We’re giving away three copies of Dr. Raghuram’s book The Third Pillar: How Markets and the State Leave Community Behind. Find us on LinkedIn or Twitter and let us know what part of the conversation stood out most to you.

Highlights from the episode:

7.20: The battle between markets and the state and why community is so often crowded out. “In the 20th century, and the struggle between the state and markets – markets won out.”

11.45: The inherent nature of community. “Humans will constantly reinvent new ways of getting together and re-connecting.”

24.23: Rising inequality and the debt crisis. “I think we are in danger of going from crisis to crisis as we use debt to paper over problems. From unsustainable solution to unsustainable solution unless we tackle the underlying problem.”

36.50: The aftermath of the financial crisis. “The backlash to the crisis has spread from the bankers to trade. Yet solutions to some of the largest challenges we face – such as an aging population – will depend on an integrated and open world.”

 

Recording date: 19.11.2020

 

Dr. Raghuram Rajan

Dr. Raghuram Rajan is Professor of Finance at University of Chicago Booth School of Business. He was the 23rd Governor of the Reserve Bank of India from 2013 to 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund. Dr. Rajan’s research interests are in banking, corporate finance, and economic development, especially the role finance plays in it. His books include Fault Lines: How Hidden Fractures Still Threaten the World Economy, The Third Pillar: How the State and Markets are Leaving Communities Behind and Saving Capitalism from the Capitalists which he co-authored with Luigi Zingales.