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With the challenges of inequality so embedded in the political and economic infrastructure and their origin at least in part associated with national and global forces outside and beyond the control of the city, remediation is extraordinarily difficult. Only with innovation and imagination is inequality likely to be touched. Only if we are willing to look at the informal as well as the formal economy, and ignore the common wisdom about corruption and squatting and hidden capital, are we likely to find some partial answers to the burdens under which the most progressive and prosperous cities labour. (Excerpt)
The most obvious lesson from the recent crisis is that today's version of unfettered capitalism is unable to selfcorrect. For the past 30 years and more, perhaps, the neoliberal model of capitalism has ruled supreme, promoting ultimate freedom in markets and the globalisation of finance to apparently deliver endless prosperity to all through consumption-led growth. The result has been massive environmental damage, depletion of natural resources and a growing gap between rich and poor. The model is unravelling, as the hidden costs are surfacing everywhere. Asian governments are being called upon to wake up and understand that to rely on the market to correct the inefficiencies in the allocation of resources is at best futile and naive and at worst plain dishonest.