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The Market, Democracy and Development

*
Professor Amartya Sen

cannot adequately express how happy I am to be back

I in Thailand a country of incomparable grace, elegance
and inspiration, which has charmed me ever since I first visited it
36 years ago. I am also very honourd to have the opportunity of
speaking here today, and extremely happy to become associated
with the distinguished King Prajadhipok's Institute. I was origi-
nally asked to speak on "Democracy, Governance, Development
and Social Justice in a Globalized World." There are a great many
themes there, but they all relate, one way or another, to the chal-
lenges of living in the contemporary world, especially at a time of

economic adversity and crisis. I have chosen to highlight the mar-
ket mechanism as well as democratic practice in the new title of
this lecture.

The economic mood of the world can change fast -
very fast. Not long ago in the 1980s market capitalism seemed

triumphant. Businesses were all booming in old capitalist econo-
mies in the West as well as in the new centres in Japan and East
and South"East Asia. Not only did socialism look absolutely dead,
even the welfare state (the pride of contemporary Europe) was
beginning to be seen as an euphemism for profligate even waste-
ful spending. The great effectiveness of the market economy had
become the dominant message.

A decade and a half later, things look rether different.
East and South East Asia had its economic crisis, with widespread
suffering of newly destituted sections of the population. The per-

Ph.D. : Trinity College. Cambridge.