'A New Economics for a Better World': Economics must focus on human security and societal development rather than feed the avarice of a golden ghetto minority

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Abstract

Economics has long been obsessed with GDP as the base measure of development. Global institutions and governments have acquiesced in this descent into a recklessness that threatens humanity. In India a GDP rising by around 7% looks good to some, but the traditional World Bank focus on GDP tells us nothing about who benefits, or who is left behind in the dash for growth. India would be better off paying attention to the UN Human Development Index – a far better measure of progress towards a better future.
India will pay a heavy price if it is in thrall to the kind of Chicago School economics that promotes ‘the market’ as the ultimate arbiter of policy making. Neoliberalism and the policy prescriptions of the Washington Consensus have been exported world-wide; the result is more frequent and deeper financial crises.
Economics must abandon the pretense that it is a science, and any assumption that human beings are rational. It should consider instead human needs and how to meet them. Such a reorientation is in India’s national interest, and in the interests of all humanity.
Economics, and the attention of governments, should focus on human security and societal development to the benefit of all, rather than feed the avarice of a golden ghetto minority with ever increasing wealth.
Original languageEnglish
JournalHindu Business Line
Publication statusPublished - 5 May 2017

Keywords

  • Neoliberalism
  • human security
  • economics
  • gross domestic product
  • development
  • inequality
  • poverty
  • wealth
  • India

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