The author posits that successful democracies require balance between competitive markets, honest governments and local communities. Currently, as markets scale up, states scale up too; Rajan offers an alternative: strengthening local communities.

It's on the televisions, in the papers and in our minds. Every day we're bludgeoned by news of how bad everything is - financial collapse, unemployment, growing poverty, environmental disasters, disease, hunger, war. But the rarely acknowledged reality is that our progress over the past few decades has been unprecedented. By almost any index you care to identify, things are markedly better now than they have ever been for almost everyone alive. Examining...

"A generation of people around the world, from Boston to Bangkok, from New York to New Delhi, are making everyday choices in ways that defy traditional logic. They are judging where and how their clothes were made, not just how they fit. They are thinking global but buying local. They are spending their money and their time, forming loyalties, casting votes and even enjoying entertainment based increasingly upon their desire to make a positive impact...