The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World

The Commanding Heights is about the most powerful political and economic force in the world today -- the epic struggle between government and the marketplace that has, over the last twenty years, turned the world upside down and dramatically transformed our lives. Now, the Pulitzer Prize-winning author of The Prize joins with a leading expert on the new marketplace to explain the revolution in ideas that is reshaping the modern world. Written with the same sweeping narrative power that made The Prize an enormous success, The Commanding Heights provides the historical perspective, the global vision, and the insight to help us understand the tumult of the past half century.

Trillions of dollars in assets and fundamental political power are changing hands as free markets wrest control from government of the "commanding heights" -- the dominant businesses and industries of the world economy. Daniel Yergin and Joseph Stanislaw demonstrate that words like "privatization" and "deregulation" are inadequate to describe the enormous upheaval that is unfolding before our eyes. Along with the creation of vast new wealth, the map of the global economy is being redrawn. Indeed, the very structure of society is changing. New markets and new opportunities have brought great new risks as well. How has all this come about? Who are the major figures behind it? How does it affect our lives?

The collapse of the Soviet Union, the awesome rise of China, the awakening of India, economic revival in Latin America, the march toward the European Union -- all are a part of this political and economic revolution. Fiscal realities and financial markets are relentlessly propelling deregulation; achieving a new balance between government and marketplace will be the major political challenge in the coming years. Looking back, the authors describe how the old balance was overturned, and by whom. Looking forward, they explore these questions: Will the new balance prevail? Or does the free market contain the seeds of its own destruction? Will there be a backlash against any excesses of the free market? And finally, The Commanding Heights illuminates the five tests by which the success or failure of all these changes can be measured, and defines the key issues as we enter the twenty-first century.

The Commanding Heights captures this revolution in ideas in riveting accounts of the history and the politics of the postwar years and compelling tales of the astute politicians, brilliant thinkers, and tenacious businessmen who brought these changes about. Margaret Thatcher, Donald Reagan, Deng Xiaoping, and Bill Clinton share the stage with the "Minister of Thought" Keith Joseph, the broommaker's son Domingo Cavallo, and Friedrich von Hayek, the Austrian economist who was determined to win the twenty-year "battle of ideas." It is a complex and wide-ranging story, and the authors tell it brilliantly, with a deep understanding of human character, making critically important ideas lucid and accessible. Written with unique access to many of the key players, The Commanding Heights, like no other book, brings us an understanding of the last half of the twentieth century -- and sheds a powerful light on what lies ahead in the twenty-first century.

The writers, Daniel Yergin and Joseph Stanislaw, are both players of the business world, and Ph.D. holders (Yergin's from Cambridge University, where he was Marshall Scholar, and Stanislaw holds a Ph.D. from Edinburgh University). Furthermore, Yergin's book "The Prize" was awarded the Pulitzer Prize. One could only expect a dry, scholarly frightening work from the two, but, surprisingly, Commanding Heights is anything but intimidating.

This is a very good introduction to 20th century's economic plans and philosophies- from Gandhi's "swadeshi" to Thatcherism of the late 1970s and 80s to the 'global economy' of the 90s and present.

The book's treatment of Thatcher and Thatcherism is very good and readable, and almost enlightening. The portrayal of Margaret Thatcher is illuminating, if not flattering for the subject. The Thatcher of the book is not the evil witch of left-wing politics, but that of a hard-working, decent and uncompromising woman from a lower middle class background. Her (political) partnership with Joseph Keith and her devotion to Keith's plan is intriguing, and her David-and-Goliath battles with the 'establishment' is inspirational. ("I am the rebel head of an establishment government" she once boasted). Keynesians beware- this book might turn you into a Thatcherite!

Another highlight is the book's treatment of Latin America's economic dogmas and policies. Here, Chapter Nine of the book, it reads like a dark, compelling, political thriller authored by Vargas Llosa (Not surprisingly, Llosa's name appears in this book). Like the rest of the book, this chapter is highly fascinating and lively.

With great clarity and intelligence, this is a highly recommended 'big' book. A great companion as we face a new century. READ IT!


Offers insightful understanding of globalization.   January 18, 1998
Pranay Gupte (Brooklyn, NY United States)
31 out of 35 found this review helpful

Daniel Yergin provides the reader extraordinary insight into contemporary globalization. In a masterful, sweeping work that encompasses economic and social history of the post-war era, Yergin (who won the Pulitzer Prize for "The Prize," his study of the oil industry) and his co-author Joseph Stanislaw help us understand how economies around the world, but especially in the third world, are abandoning the old faith in big government and are embracing the marketplace. But Yergin and Stanislaw also warn that the marketplace -- laissez-faire -- is fraught with perils for countries that don't have sound governance and indigenous institutions and entrepreneurs who are able to function responsibly in an increasingly interdependent world. I found the book's analysis particularly lucid; the chronology at the end, which details the evolution of economic theory as well as cites political trends, should be especially useful to students. This is a book I'd recommend highly for laymen and scholars alike.


Excellent coverage of economic history   November 22, 2002
Eric N. Gross (Eugene, Oregon United States)
9 out of 10 found this review helpful

...Of course the "battle of ideas" is far from over. With a globalization that has been hijacked by mega-corporate interests and plenty of issues surrounding the social services like healthcare and such, the next 20 years in global politics will almost certainly continue to be interesting and ground-breaking. Socialism, seemingly 'dead' from the viewpoint of this book, is making a comeback in the first few years of the new century. Learning how to manage the global economy to prevent exploitation and protect human civil liberties will be the next big goal.

If you want to know the history of American antitrust legislation, it's in this book. Curious about the social market economy? You'll find out very soon after opening the cover. Why is it that Margaret Thatcher managed to get all her reforms through despite initially negative feedback from the first wave of pro-market policies? Well, you'll just have to read to find out. Detailed accounts of various countries' economic history are found here unlike the video which can only include a few more prominent examples. There is very good coverage of the East Asian "tigers" and an in-depth account of American deregulation, as well as the European Union, topics not covered significantly in the video.


fascinating sweep of economic/geopolitical history   July 8, 1999
8 out of 9 found this review helpful

I'm a few pages from the end and I've loved every page of this book. A wealth of historical and economic data is lightened with personal anecdotes about or from key players on the world stage in this century. The reader from Hong Kong, presumably more familiar with Chinese history than some of us, understandably may find the China section lacking but I found the insights into the struggles for power within the CCP enlightening. This book put together information I was mostly familiar with from other sources, but weaving it all together in a balanced way, adding anecdotes and colorful details, is tremendous added value. I'm familiar with at least the titles of many works of economics mentioned and was pleased to find little-known (in the U.S.) but key works mentioned such as Hernando de Soto's El Otro Sendero. Should be required reading.