Capitalism’s broken promises


Published 22.04.20
Photo credit:
Johan Bichel Lindegaard/flickr

Has capitalism’s promise of equal opportunity broken down as a result of technological change?

The bedrock of capitalism has always rested on the promise of equal opportunity. Whilst this promise has never been entirely realised, it has seemed plausible to many across the world. In this VoxDev video, Professor Raghuram Rajan, discusses his ground-breaking new book, The Third Pillar, which argues that this promise has broken down. He points to the lack of capacity for local communities in emerging economies to deliver quality education. Meanwhile, technological change continues to drive increasing returns to education. As a result, those in rural communities with poor schools are destined to fail, breaking any promise of equal opportunity.