Capitalism, Alone: The Future of the System That Rules the World

by Branko Milanovic

Overview

An Economist Book of the Year
A Financial Times Book of the Year
A Foreign Affairs Best Book of the Year
A Prospect Best Book of the Year
A ProMarket Book of the Year
An Omidyar Network “8 Storytellers Informing How We’ve been Reimagining Capitalism” Selection

“Brilliant…Poses all the important questions about our future.”
—Gordon Brown

“A scholar of inequality warns that while capitalism may have seen off rival economic systems, the survival of liberal democracies is anything but assured.”
—The Economist

We are all capitalists now. For the first time in human history, the world is dominated by one economic system. At some level capitalism has triumphed because it works: it delivers prosperity and gratifies our desire for autonomy. But this comes at a moral price, pushing us to treat material success as the ultimate goal, and offers no guarantee of stability. While Western liberal capitalism creaks under the strains of inequality and excess, some are flaunting the virtues of political capitalism, exemplified by China, which may be more efficient, but is also vulnerable to corruption and social unrest.

One of the outstanding economists of his generation, Branko Milanovic mines the data to tell his ambitious and compelling story. Capitalism gets a lot wrong, he argues, but also much right—and it isn’t going away anytime soon. Our task is to improve it in the hopes that a more equitable capitalism can take hold.

“Erudite, illuminating…Engaging to read…As a virtuoso economist, Milanovic is superb when he is compiling and assessing data.”
—Robert Kuttner, New York Review of Books

“Leaves little doubt that the social contract no longer holds. Whether you live in Beijing or New York, the time for renegotiation is approaching.”
—Edward Luce, Financial Times

Product Details

ISBN-13:	9780674260306
Publisher:	Harvard University Press
Publication date:	09/07/2021
Pages:	304
Sales rank:	646,003
Product dimensions:	5.50(w) x 8.10(h) x 1.00(d)

About the Author

Branko Milanovic is Senior Scholar at the Stone Center on Socio-Economic Inequality at the City University of New York and Visiting Professor at the International Inequalities Institute at the London School of Economics and Political Science. Formerly Lead Economist in the World Bank’s research department, he is the author of Capitalism, Alone; and The Haves and the Have-Nots.

Table of Contents

1 The Contours of the Post-Cold War World 1

2 Liberal Meritocratic Capitalism 12

3 Political Capitalism 67

4 The Interaction of Capitalism and Globalization 129

5 The Future of Global Capitalism 176

Appendix A The Place of Communism in Global History 221

Appendix B Hypercommercialization and Adam Smith's "Invisible Hand" 227

Appendix C Some Methodological Issues and Definitions 231

Notes 237

References 259

Acknowledgments 273

Index 275

Editorial Reviews

An extraordinarily valuable book for anyone who wants to gain an understanding of current topics in economic research and their bearing on policy debates.

Matt Mazewski

The conceptions of political and liberal meritocratic capitalism prove to be both novel and compelling…Milanovic’s proposition is valuable as framework for understanding the future of political capitalism, within China and beyond.

Journal of East Asian Studies - Panthea Pourmalek

Milanovic outlines a taxonomy of capitalisms and traces their evolution from classical capitalism before 1914, through the social-democratic capitalism of the mid-20th century, to ‘liberal meritocratic capitalism’ in much of the rich world, in particular America. He contrasts this with the ‘political capitalism’ found in many emerging countries, with China as the exemplar. These two capitalistic forms now dominate the global landscape. Their co-evolution will shape world history for decades to come.

The Economist

May turn out to be a seminal work on the fin de siècle de capitalisme…His conclusions and concepts, make extraordinary contributions to considerations of the state of capitalism.

Business Day

A brilliant sequel to the pathbreaking Global Inequality. Drawing on original research and a typically wide sweep of history, Branko Milanovic poses all the important questions about our future.

Gordon Brown

[The] first three chapters are brilliant, original and make for gripping reading…Relish the erudition and panache.

From Poverty to Power - Duncan Green

Milanovic writes as a good teacher, telling us what is coming, sharing the content, and then reminding us what we just learned. He takes the reader on diverting side journeys into the history of communism, the implausibility of a universal basic income, and even a brief summary from first principles of the past development and possible trajectories of Western liberal capitalism. The effect can be both exhilarating and overwhelming…Capitalism, Alone is a book to scribble questions all over, and then read again.

Inside Story - Glyn Davis

A remarkable book, possibly the author’s most comprehensive opus so far…I highly recommend Capitalism, Alone to all readers and scholars interested in challenging their understanding of the (supposed) sole socio-economic system we live in.

Roberto Iacono

Capitalism, Alone is an excellent work that covers a broad swath of the history of modern capitalism.

Edward Wolff

A data-rich, provocative account of where capitalism is today and where it may be headed.

Quillette - Samuel Hammond

Milanovic gives an impressive amount of space and effort in his book to provide a thorough analysis of the role of corruption in globalization…What I have always most valued about Branko Milanovic is his willingness to follow his intuition to open up new aspects of the political discussion. I may not agree with him on some issues, but I always come away greatly enriched by the experience.

Brave New Europe - Mathew D. Rose

An excellent new book on the past, present, and future of economic systems.

Dawn - Umair Javed

Attempts to make sense of the new world order and what could come of it. For that, it deserves to be read…An interesting and important read about the state of capitalism today and the directions it may take in the future. Milanovic’s history of focusing on economic data—rather than simplistic theory—and his healthy skepticism of meritocratic capitalism ensure that Capitalism, Alone will inform and provoke readers.

New York Journal of Books

An ambitious and provocative examination of the present and the future of capitalism. It is a valuable, data-rich, and thoughtful addition to several recent books examining the challenges facing this economic system…Milanovic says that while capitalism cannot be replaced—at least in the foreseeable future—it can be improved.

Finance & Development - Zia Qureshi

Branko Milanovic, a master economic statistician, here divides modern capitalism broadly into two versions: the ‘liberal’ one found in the West, and the ‘political’ one that has emerged in China. In this searching and richly argued work he weighs the choices we face and discusses whether the future may lie with one version, alone.

James K. Galbraith

Milanovic’s greatest contributions in Capitalism, Alone come from his fresh approach to the history of different capitalist countries. His taxonomy of Western countries evolving from classical, social-democratic, and now liberal-meritocratic capitalism helps us put the current state of affairs into better context and think about the ways policy can and cannot improve the system…His analysis of the forces and magnitudes of different kinds of inequality give a more nuanced story than is often found in public discussions.

Liberal Currents - Will Compernolle

A readable and thought-provoking book, providing a concise introduction to some of the most important issues of our time.

Society - Kevin Hjortshøj O’Rourke

A gift to those of us grappling with economic and political inequality, as we seek ways to promote a fairer and more productive, sustainable society.

Trades Union Congress (TUC) blog - Tim Page

The book is erudite, illuminating…Milanovic is well credentialed to take on this large and daunting subject…Scholarly and festooned with data, but also narrative in style and engaging to read…Milanovic chronicles the rise of authoritarian capitalism, both in nations that once epitomized liberal capitalism such as the U.S. and in countries like China, which are partly capitalist but show no signs of turning liberal…As a virtuoso economist, Milanovic is superb when he is compiling and assessing data.

New York Review of Books - Robert Kuttner

[Milanovic] brings readers broader perspectives than most western economists.

Financial Times - Martin Sandbu

Leaves little doubt that the social contract no longer holds. Whether you live in Beijing or New York, the time for renegotiation is approaching.

Financial Times - Edward Luce

Milanovic has written what may be his most ambitious book yet. Featuring his trademark clarity and erudition, Capitalism, Alone contains wide-ranging and thoughtful insights into the nature of capitalism as it is currently structured and considers how it will evolve in the coming century.

Arjun Jayadev

Milanovic’s method is eclectic and empirical, informed by Marxist concepts but not limited to them.

Jacobin - Max B. Sawlicky

Branko Milanovic, the master narrator of global equality, brings an entirely new perspective to the topic in this remarkably astute book. By tracing the deep and evolving ideological foundations of capitalism and communism and analyzing the rise of Asia and particularly China, he contributes thought-provoking insights on the critical role of institutions and ideology for the long-term prospects of global economies.

Debin Ma

Few economists can compete with [Milanovic’s] stunning erudition, or with his skill in weaving together seemingly disparate figures with complex philosophical ideas to produce a coherent thesis that feels highly relevant to our troubled times. Capitalism, Alone is one of the most ambitious economics books published this year, in terms of its breadth and scope, and definitely one of the most fascinating.

ProMarket

This fascinating book offers a big-picture view of economic and social history over the past two centuries…But Milanovic is not confident that a more equal capitalism will emerge.

Foreign Affairs - Richard N. Cooper

Countries with larger tax cuts experienced bigger increases in inequality… [The consequences] are richly detailed in Capitalism, Alone… Builds on Milanovic’s previous book, Global Inequality… Ideally the two should be read together… [Milanovic] belongs to a new generation of data-driven economists who have helped track what has happened to income distribution in recent years.

New Yorker - Liaquat Ahamed

When politicians, pundits, and academics speak of a growing competition, or even a New Cold War, between the United States and China, one thing that is not asked enough is what is being competed for. Likewise, when we speak of an ‘American’ or ‘Western’ model, in contrast to a ‘Chinese’ one, it is worth asking what or who exactly is being modeled, and to what end. One of the virtues of Branko Milanović’s new book, Capitalism, Alone, is that it addresses these questions head-on and with useful insights and results.

Nils Gilmann Interest

When politicians, pundits, and academics speak of a growing competition, or even a New Cold War, between the United States and China, one thing that is not asked enough is what is being competed for. Likewise, when we speak of an ‘American’ or ‘Western’ model, in contrast to a ‘Chinese’ one, it is worth asking what or who exactly is being modeled, and to what end. One of the virtues of Branko Milanović’s new book, Capitalism, Alone, is that it addresses these questions head-on and with useful insights and results.

American Interest - Nils Gilman