Saving capitalism from the capitalists may seem like an awkward
crusade, but perhaps that is exactly what world financial markets
need, according to Raghuram Rajan, a world renowned financial
economist and professor.
Rajan advocates a change in the way the world views capitalism
in his new book “Saving Capitalism from Capitalists,”
and his upcoming lecture at UCLA Tuesday.
The event is sponsored by the Anderson School at UCLA in
association with the Center of International Business Education and
Research.
Rajan is visiting campus as a part of CIBER’s
Distinguished Visiting Scholars Program, where he will engage in a
variety of lectures and forums.
Excitement has engulfed the Anderson School and the reason is
clear: Rajan is distinguished in the field of corporate and
international finance and has much experience and knowledge to
offer, said Bhagwan Chowdhry, professor of finance at the Anderson
School.
“Rajan will come and interact with students and faculty,
creating an intellectual atmosphere,” Chowdhry said.
Rajan is the recipient of the 2003 Brattle Prize
Association’s Inaugural Fisher Black Prize, an honor which
the association gives to the person under 40 it feels has
contributed the most to the field of finance.
Additionally, Rajan was recently appointed as economic counselor
and director of research for the International Monetary Fund.
Fifteen years spent in India has affected the way Rajan feels
regarding the economy and the reason why the poor stay poor.
“I realized that part of the reason people are poor is
that they don’t have adequate access to markets. … Seeing
India convinces you that if only you could spread access, then you
could reduce the poverty that we see,” he said.
In addition to India, Rajan has also studied at the
Massachusetts Institute of Technology.
Rajan chose to write “Saving Capitalism from the
Capitalists,” which he co-wrote with Luigi Zingales, a fellow
professor at the Graduate School of Business at the University of
Chicago, in part because he thought people’s sense of finance
was too narrow.
“People think solely of Wall Street; people don’t
see how finance filters in their daily lives and how it has made
their lives better,” Rajan said.
In his Tuesday lecture, Rajan will talk about his book,
discussing issues related to globalization, financial markets, and
the role financial markets play in creating wealth and equal
opportunity, Chowdhry said.
Rajan plans to cover the main points of his book, along with its
applications to the United States. He will also field questions
from the audience.
In the book, Rajan talks about the role the government should
play when overseeing financial markets. He also discusses how
capitalism can spread wealth among all countries and people.
“There are no magic bullets, the extreme left and right
are unviable. … To get to the golden mean, you need to get things
to work together. … You need a bit of government and a bit of
markets,” he said.
Rajan also attempts to battle what he perceives to be
misconceptions such as his belief that businessmen have created a
new commandment: “Thou shall not downsize.”
“The wrong way to go about fixing economic problems is to
stand in the way of progress. Sometimes we need to downsize,”
he said.
The lecture will take place Tuesday at 4 p.m. at Collins-A201 in
the Anderson School.