The Third Pillar

In The Third Pillar, Raghuram G. Rajan introduces us to the concept of the three pillars that support society: the state, the market, and the community. He emphasizes that for a balanced and harmonious society, all three pillars need to be strong and work in harmony.

Rajan highlights the importance of the community pillar, often overlooked in favor of the state and market. He argues that a strong community is essential for a functioning democracy and market, as it provides the social and cultural context in which the other two pillars operate.

The book explores how technology has disrupted the balance between the three pillars. Rajan suggests that while technology has brought many benefits, it has also led to job losses and increased inequality, weakening the community pillar.

Rajan argues that to restore balance, we need to reform our institutions and policies. He suggests that this includes strengthening local communities, reforming education and training systems, and ensuring that technological progress benefits everyone.

In The Third Pillar, Rajan encourages us to look into the power of localism. He believes that empowering local communities can help restore balance between the three pillars, as they are best placed to understand and respond to their unique challenges and opportunities.