## Book Review: Capitalism, Alone by Branko Milanovic ## Source details **Canonical URL:** [Book Review: Capitalism, Alone by Branko Milanovic](https://www.imf.org/en/publications/fandd/issues/2020/03/book-review-of-capitalism-alone-qureshi) ## Other formats - [Markdown version](/en/publications/fandd/issues/2020/03/book-review-of-capitalism-alone-qureshi/index.md) - [Structured JSON version](/en/publications/fandd/issues/2020/03/book-review-of-capitalism-alone-qureshi/index.json) - [Bundle manifest](/en/publications/fandd/issues/2020/03/book-review-of-capitalism-alone-qureshi/bundle-manifest.json) ## Bibliographic details - Authors: ZIA QURESHI - Published: March 1, 2020 --- ### Overview and thesis - Reviewed by Zia Qureshi, senior fellow in the Global Economy and Development program at the Brookings Institution. - Review appears in F&D Magazine, March 2020. - Book bibliographic details as presented: Branko Milanovic, Capitalism, Alone: The Future of the System That Rules the World, Harvard University/Belknap Press, Cambridge, MA, 2019, 304 pp., $29.95. - Central premise of the book: capitalism has beaten all alternatives and for the first time a single economic system rules the world. Quote: “The domination of capitalism as the best, or rather the only, way to organize production and distribution seems absolute.” - Milanovic’s counterpoint to the “end of history” thesis: the triumph of liberal capitalism has not delivered the 1990s vision and significant internal strains remain. ### Internal strains and challenges identified - Increasing income and wealth inequality within economies. - Declining intergenerational mobility. - Mounting economic and social polarization. - Rising influence of wealth in politics leading to concentration of both economic and political power in the hands of an elite and a weakening of democratic polity. - Technological change may exacerbate these strains. - Rising popular revolt across Western capitalist democracies reflects these tensions. ### Types of capitalism and comparative analysis - Two competing forms of capitalism identified: - “Liberal meritocratic capitalism” — the West, with the United States as the paradigmatic example. - “Political capitalism” — China presented as the exemplar. - Characteristics and problems of political capitalism: - Endemic corruption. - Weak rule of law. - Authoritarian control by a political elite whose power depends on delivering continued high economic growth. - Rising inequality. - Competition is now between different types of capitalism rather than capitalism versus non-capitalist systems. ### Policy recommendations and reforms Milanovic sketches - Deconcentrate capital and wealth ownership by: - Tax advantages that give the middle class a bigger stake in financial capital. - Corresponding increase in the taxation of the rich. - Higher taxes on inheritance. - Significant boost in public investment to broaden access to high-quality education and enhance equality of opportunity. - Strictly limited and exclusively public funding of political campaigns to reduce the ability of the rich to control the political process. ### Implementation challenges and scenarios - Major reforms face heavy odds because wealthy elites wield strong political influence and will resist change. - Higher taxes on capital and wealth may be difficult in globalized capital markets without significant international coordination. - Absent reform, liberal capitalism may: - Lurch further toward plutocracy. - See technocratic structures overshadow democratic institutions as discontent with elected governments grows. - Political capitalism faces existential risks from the inevitable slowing of growth as economies mature. - Conclusion: capitalism cannot be easily replaced in the foreseeable future but can be improved; the evolution of socioeconomic systems has not reached its terminus — “The march of history continues.” *Source: Zia Qureshi, "Book Review: Capitalism, Alone by Branko Milanovic", F&D, March 2020.* --- ## Content in this bundle - **أهي نهاية التاريخ؟** - [أهي نهاية التاريخ؟ (Markdown version)](/-/media/files/publications/fandd/article/2020/march/ar/book2.pdf.md){rel="alternate" type="text/markdown"} - [أهي نهاية التاريخ؟ (PDF)](/-/media/files/publications/fandd/article/2020/march/ar/book2.pdf){rel="external" type="application/pdf"} - **Book Review: Capitalism, Alone by Branko Milanovic – IMF F&D** - [Book Review: Capitalism, Alone by Branko Milanovic – IMF F&D (Markdown version)](/-/media/files/publications/fandd/article/2020/march/book-review-of-capitalism-alone-qureshi.pdf.md){rel="alternate" type="text/markdown"} - [Book Review: Capitalism, Alone by Branko Milanovic – IMF F&D (PDF)](/-/media/files/publications/fandd/article/2020/march/book-review-of-capitalism-alone-qureshi.pdf){rel="external" type="application/pdf"} - **Country Report** - [Country Report (Markdown version)](/-/media/files/publications/fandd/article/2020/march/es/critica-libros-capitalism-alone-qureshi.pdf.md){rel="alternate" type="text/markdown"} - [Country Report (PDF)](/-/media/files/publications/fandd/article/2020/march/es/critica-libros-capitalism-alone-qureshi.pdf){rel="external" type="application/pdf"} - **Notes de lecture** - [Notes de lecture (Markdown version)](/-/media/files/publications/fandd/article/2020/march/fr/note-de-lecture-de-capitalism-alone-qureshi.pdf.md){rel="alternate" type="text/markdown"} - [Notes de lecture (PDF)](/-/media/files/publications/fandd/article/2020/march/fr/note-de-lecture-de-capitalism-alone-qureshi.pdf){rel="external" type="application/pdf"} - **《资本主义制度的未来》 - 书 评 - 金融与发展 - 国际货币基金组织季刊 -2020年3月号·第57卷·第1期** - [《资本主义制度的未来》 - 书 评 - 金融与发展 - 国际货币基金组织季刊 -2020年3月号·第57卷·第1期 (Markdown version)](/-/media/files/publications/fandd/article/2020/march/zh/book2.pdf.md){rel="alternate" type="text/markdown"} - [《资本主义制度的未来》 - 书 评 - 金融与发展 - 国际货币基金组织季刊 -2020年3月号·第57卷·第1期 (PDF)](/-/media/files/publications/fandd/article/2020/march/zh/book2.pdf){rel="external" type="application/pdf"} --- _Source: https://www.imf.org/en/publications/fandd/issues/2020/03/book-review-of-capitalism-alone-qureshi_