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

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.

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.

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.”

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.”

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