The NEF (New Economics Foundation) has reported recently that thirty international universities have signed up to a campaign for economic reform; rebuking the existing one of neoclassic economic theory.
The current neoclassic model of economics has proven to cause boom and bust consistently over the last century to the present financial crisis; with many suffering the negative side of economic inequality and a minority retaining all the power and the wealth.
Maximizing profits and gains, minimising inputs which the majority of the time comes at great cost of compromised ethics, higher standards, good work practise and transparency. What a country in the richer north may deem appropriate may be seriously compromising for another country in the poorer south.
As India and China begin to pick up the pace on becoming the world’s stronger economies; will they make all the same mistakes that Europe and North American have undertaken the last 100 - 150 years with its negative reciprocating effects upon the rest of the planet socially, economically and environmentally.
With austerity measures being put in place in many countries, a real emphasis has emerged upon civil/community responsibility where now the general public are expected to pick up the slack which before many took for granted as local authorities tasks (pick up litter, clean up graffiti, clean the autumn leaves away, dealing with local trouble-makers through calm communication, networking up a more localised economy.) What if a new economic theory could come from all these activities and how it ties a community together and makes it more functional?
As we make fundamental shifts towards real localism on a rural and dense urban level (streets clubbing together within districts, within local authorities, within city boundaries within counties, within countries etc. etc.) results in communities will simply hve to make more localised connections in order to progress in an appropriate manner where society can function properly and effectively without health compromise, greed, crime and overall poor wellbeing being supported.
Economics of neoclassical variety take a stance where one size fits all countries economics systems appropriately. It may be a more appropriate economic system is designed for specific localities: will one system of economics based on a small level of only ten thousand people in a dessert arid region be appropriate to transfer to a very different location five thousand people in a lush mountainous region.
Is an international economy really going to ever work? With the 2008 financial crisis sat on the back of the 2007 credit crunch, sat on the back of a booming early to mid-2000’s global economy – where risks were being taken by banks, lenders and other entities – yet when the USA economy sneezed the entire planet economical system caught the proverbial cold.
Is economic localisation the real step forward? Can theories of economics be revised an new models created based on local geography, local resources, local real needs (not wants) which may support a more efficient agricultural system (food miles significantly reduced) providing healthier food first for the locality of half a million people, with emphasis on appropriate taxes and incentives to help people live healthier lifestyles and not a ticking time bomb of our expanding global obesity problem, failing medicines against the superbug, chronic inequality between the districts, counties, countries and international borders.
What economic model will be best? The new eco-local-nomics model?
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