Abstract

Capitalism comes before capital and growth. The term capitalism was used for the first time in 1854 by Thackeray in his novel, The Newcomes. In Alvi's view, mercantilism explains growth better than liberalism. He invites readers to observe the Chinese outcome. The current debate on growth, either invoked or deplored, is misleading. The growth issue can be challenged only by limiting the role of the State, by reforming the financial institutions and cooperating in the production stage, within a libertarian and supportive design.