Presentation done by Steven Vogel, Professor of Political Science and Political Economy, University of California, Berkeley on "Building Human Foundation" at #TheIndiaDialog on February 24 at Stanford University. The #TheIndiaDialog was organised by Institute for Competitiveness and US Asia Technology Management Center at Stanford University.

1. Marketcraft for
India
India Dialog
Stanford University
February 24, 2023
Steven K. Vogel
UC Berkeley

2. Marketcraft
Think of “marketcraft” (market
governance) as a core government
function, roughly comparable to
statecraft.
Marketcraft can produce spectacular
successes or devastating failures,
just like statecraft.

3. The Marketcraft Thesis
If all markets are governed, then . . .
1. There is no such thing as a free market.
2. Markets have to be constructed.
3. Market reform is primarily a constructive
enterprise, not a destructive one.
4. And the government vs. market
dichotomy is false.

5. President Ronald Reagan
(1981-88)
“At the heart of our efforts is one idea . . .
Freedom and incentives unleash the drive
and entrepreneurial genius that are the core
of human progress. We have begun to
increase the rewards for work, savings, and
investment; reduce the increase in the cost
and size of government and its interference
in people’s lives.”

6. Prime Minister Narendra Modi
(2014-present)
“The labour reforms are shining examples of
‘minimum government, maximum
governance.’... They will ensure ‘ease of
doing business.’ These are futuristic
legislations which will empower enterprises
by reducing compliance, red-tapism, and
‘Inspector Raj.’ These reforms also seek to
harness the power of technology for the
betterment of the workers and industry both.”

7. A Way-too-Simple
Marketcraft Scorecard for India
Labor market reform
Regulatory reform
Formalization of the economy
Antitrust
Financial regulation
Corporate governance
Bankruptcy code
Also: human resource development, infrastructure
investment, industrial/technology policy