ABSTRACT
The world's politics seems deeply troubled, with daily reports of bombings, terror plots, rogue states, and civil strife. Markets do panic but over economic not political news. Conventional economic wisdom, embodied in organizations such as the International Monetary Fund and the World Bank, had become far more critical of the quasi-socialist path of countries like India. In a globalized world, almost all problems spill over borders. Whether it's terrorism, nuclear proliferation, disease, environmental degradation, economic crisis, or water scarcity, no issue can be addressed without significant coordination and cooperation among many countries. After the Cold War ended, there was a general hope and expectation that China and Russia would move inexorably into the post–World War II Western political and economic system. The reforms needed are obvious but because they mean some pain now for long-term gain, the political system cannot make them.
