Jagdish Bhagwati’s intellectual arc has taken him from
profound theoretical analysis of international trade to deep insights into the
political economy of globalization. No economist now living has displayed so
potent a combination of academic analysis and practical wisdom.
On Award of Distinguished Fellowship of the American Economic
(in MS Word)
Participants and Papers
Dinner, August 5, 2005)
Program (in pdf)
Directions to Columbia
Columbia Campus Map
to the Main Conference Page
70th Birthday Celebration
International Trade and Factor
Mobility: Theory and Policy
Celebrating a Free-Market Economist
BY PRANAY GUPTE - Special to the Sun
July 29, 2005
One week from today, a host of Nobel laureates, academics, press
luminaries, foreign-policy and business leaders, politicians, diplomats, and
even the secretary-general of the United Nations will gather at Columbia
University to honor a tall, bespectacled Indian born intellectual on his 70th
The celebrants will deliver speeches about how Jagdish Bhagwati
has transformed contemporary developmental thinking. They will acknowledge his
seminal role in moving the developing world from its postcolonial romance with
socialism toward embracing freer markets. They will cite his influence in
accelerating liberalization of global trade regimes.
They will note that leftist academics ridiculed his early
kneejerk state intervention in promoting economic and social development, and
they will surely point out that his analysis has been vindicated as third-world
nations have jettisoned state controls and opted for open economies. Mr.
Bhagwati's striking phrase "pull-up strategy" has entered the lexicon
of policymakers, dislodging the once-popular leftist put-down of growth policies
as "trickle-down" economics.
The guests at Columbia next Friday will refer to his steady
stream of bestsellers, academic treatises, widely quoted opinion articles in
major publications - and his ubiquitous presence on broadcast shows and the
lecture circuit, where his ripostes, accompanied by trademark giggles, have made
Mr. Bhagwati a popular figure.
Some of the celebrants may even wonder aloud why the Nobel Committee has
overlooked him so far while rewarding other economists who have had a sustained
record of failed prescriptions. His theoretical work in international trade is
universally regarded as worthy of a Nobel Prize, whereas he trumps most Nobel
laureates in his impact on policymaking.
And they may wonder what it is that enables Mr. Bhagwati to retain his perch in
the space where theoretical economics fertilizes public policy.
On that last point, the celebrants at Columbia on August 5 are likely to get the
answer that the honoree offered to The New York Sun yesterday:
"Words matter, as George Orwell famously said, and ideas
"I believe in creating knowledge," the professor said. "But then
it must be used for advancing the public good. Knowledge and virtue are the twin
attributes of a great economist in my view."
Over an eclectic lifetime, Mr. Bhagwati has created and used economics for
social purposes. But many economists have also professed to work for the social
good - and actually done harm. One example of such well-meaning but unproductive
intellectualizing is Mr. Bhagwati's fellow Indian economist, Amartya Sen, whose
embrace of public-sector white elephants and other leftist prescriptions
contributed to India's nearly three decades of abysmal growth and consequent
increase in poverty.
By contrast, Mr. Bhagwati's prescriptions of openness in trade and foreign
investment and other economic reforms have led to accelerated growth and poverty
reduction in the last 15 years - to the point where President Bush has said he
expects India to become an economic superpower.
"My views were contrarian at the time in India," Mr. Bhagwati said
yesterday. "And they made me unpalatable to the huge numbers of
intellectuals and economists who were convinced of the wisdom of their mistaken
views. But I believe that a professor can do public good only by becoming a
public nuisance. He will be invited to fewer parties - but so what?"
Of course, next week's party at Columbia - on his 70th birthday - suggests that
now there isn't much likelihood of any dearth of invitations; indeed, economists
and policymakers representing the entire range of political views, from Martin
Feldstein on the right to Paul Krugman on the left, will be in attendance to
What is noteworthy about Mr. Bhagwati's beliefs, however, isn't that he's been
consistent about espousing them for nearly five decades.
What's striking is that freer markets and openness to the world economy isn't
where he started.
Nor did he start with any particular resolve of becoming an economist.
The son of one of India's most famous jurists - and a Supreme Court justice -
Natwarlal Bhagwati, Jagdish expected to become a lawyer. His older brother,
Praful, had joined the family trade, and went on to become the chief justice of
the Indian Supreme Court (and later a renowned human rights jurist).
It wasn't until Mr. Bhagwati got to St. John's College at Cambridge University
in Britain that the notion of a career in economics formed in his mind.
That's because he came under the tutelage of prominent economists such as Joan
Robinson and Lord Kaldor. They saw unusual promise in him, just as they did in
Mr. Bhagwati's close friend and a friend from college, Manmohan Singh. They
spawned in both men a fascination for Fabian Socialism, that philosophy of
benign state intervention popularized by Beatrice and Sidney
Mr. Bhagwati, like Mr. Singh, fell under their spell. Decades
however, both men collaborated - one intellectually and the other through
politics - in unshackling the controls and inward looking policies that had
proliferated like a spreading stain in earlier administrations, starting with
India's founding father, Prime Minister Nehru.
Theirs, in fact, has been one of the most remarkable professional
associations and personal friendships in contemporary policymaking and economics
At a lunch that Mr. Singh hosted in 1992 for American CEOs, when
as finance minister, he was implementing massive reforms, he pointed to Mr.
Bhagwati and his wife, Padma Desai, also a celebrated economist. He said that,
had India quickly adopted the suggestions the couple had made for economic
reforms in their book on India in the 1960s, the CEO lunch would have been
gratuitous: The CEOs would already have invested in India.
Mr. Bhagwati fought for long - and with eventual success- the view that
developing countries could not export successfully, arguing they had become
victims of a harmful import-substitution strategy.
With this success under his belt, he turned next to the problems
of the global trading system. He was invited by the late Arthur Dunkel, then the
director general of the General Agreement on Tariffs and Trade to be his first
economic policy adviser.
A few weeks ago, in fact, he was part of an expert group at the World Trade
Organization that produced an influential report on the future direction of the
institution. And U.N. Secretary-General Annan recently made him a member of his
advisory group on Africa.
Mr. Bhagwati has already advanced the debate on assistance to
Africa by writing that a distinction should be made between aid spent in Africa
and aid spent in America for Africa.
"One must be cautious about the former, because there are many obstacles
within Africa to using expanded aid productively," he said. "Much more
money can be used here to aid Africa by developing vaccines and cures for
African ailments, for example."
"Working on Africa returns me full circle to the developmental problems I
started working on in the early 1960s," Mr. Bhagwati said. "Our common
humanity requires us to assist Africa. How best to do it is the last remaining
challenge for developmental economists. We cannot afford to fail - for me,
Africa represents the final challenge of my career."
Final challenge? Not likely.