Global Crisis and Adam Smith

The paradigm of LGP (liberalization, globalization and privatization) gained accelerated pace with the collapse of communist states during the end of 1980s, opened up avenues of rapid development of developing nations which had so far been shackled by the paradigm of socialism and had bogged down in the quagmire of stagnation. At the same time the new era threw a formidable challenge to the world economy based on free market mechanism. A series of crises have gripped the global economy in general and the major economies in particular ever since the emergence of the globalized new era. Economists belonging to various schools of thought have explained the causes and devised solutions in their own way. Mainstream economists have ascribed the causes to certain unethical practices in the corporate world without going into the psychosis of such unethical or inadvertent activities. Keynesians have sought the cause in liberalization and relaxation of state control over the economy and radical Marxists have envisioned the end of capitalism in the crises. This e-book endeavors to point out that a more profound explanation and hint of a more enduring solution is to be found in the writings of Adam Smith, the father of modern economics. This particular aspect has scarcely been explores so far.