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"Global capitalism is currently suffering from an unmistakable malaise, epitomized by wide and growing inequality that is eroding popular support for capitalism. Such anti-capitalist sentiment, coupled with a growing anti-globalization mood, delivered Brexit in a UK referendum and swept Donald Trump to the US presidency. In Capitalism in the 21st Century, internationally well-regarded economist Dr Donghyun Park articulately explains why more capitalism is needed to tackle global problems such as climate change and inhumane poverty. While defending capitalism against its unfair demonization, the author makes a positive case for entrepreneurial capitalism, which creates wealth and jobs as well as drives human progress. According to the author, reforming the financial industry, which has become a self-serving leviathan, and more fundamentally, tweaking the economic role of the government, which stifles growth-promoting entrepreneurship, are critical to restoring the vitality of capitalism. The book is explicitly written in such a way that the general reader without any background in economics or finance can easily understand it."--

A major side effect of globalization is the erosion of the tax base due to the growing mobility of capital and the consequent international tax competition for capital. The potential loss of revenues is encouraging developing Asia's governments to look for alternative, nonconventional, nontax sources of revenue. The central objective of this paper is to explore the extent to which one potential source of nonconventional revenue - the region's soaring excess foreign exchange reserves - can help to compensate regional governments for the erosion of their tax bases. The analysis indicates that more active management of excess reserves along the lines of profit-maximizing sovereign wealth funds can indeed make a significant contribution to the region's nonconventional fiscal revenues.

Dong Hyun Park finds evidence strongly supportive of popular opinion that developing Asia should manage its foreign exchange reserves more actively. The analysis indicates that, contrary to popular opinion, the region's reserves are not a free fiscal asset but the income from investing them represents a fiscal dividend for the region's governments. This and other factors suggest that the first-best use of the region's reserves is to invest them abroad to maximize risk-adjusted returns. The resulting expansion of fiscal space will help the region's governments tackle the huge long-term developmental challenges still facing the region