Economic freedom and growth specification debate: a retrospective

This article revisits a 2006 theoretical debate on the appropriate specifications for testing the relationship between economic outcomes and economic freedom. It provides out-of-sample empirical tests corresponding to each of the theoretical positions of the two sides of the debate. The two methods of testing the relationship essentially tie in their ability to predict out-of-sample, although neither model predicts very well for the decade following the debate.     

Schumpeter, Schumacher and the Greening of Technology

How compatible are the ideas of neo-Schumpeterians (following in the footsteps of Schumpeter, the modern father of technology and innovation studies), and Schumacher, the modern father of sustainable development? At one level, there appears to be a mutually reinforcing and positive relationship between the application of new technology, innovation and improved environmental performance. However, other environmentalists argue that 'global Schumpeter dynamics', by promoting more rapid economic growth worldwide, will swamp any relative improvements in environmental performance and intensity. The tensions between the two perspectives are perhaps most evident in discussions about a possible shift towards a green 'techno-economic paradigm' (TEP). This paper asks whether a green TEP is possible, and what it might look like, in the light of these two perspectives. Neo-Schumpeterians note that while the current information technology TEP shows some sustainability characteristics, it is not inherently 'green'. However, they consider that the groundwork for a sixth, green TEP can be prepared through a mix of policies on research and development, regulation, transport, etc. Schumacher also saw technology as crucial to developing a sustainable world. But his view of sustainability was based on largely self-sufficient and community-led 'intermediate technology' that applied modern science and technology to local settings on an appropriate human and technical scale. What would be the 'key factor' of a green TEP, analogous to the microchip in the fifth, information and communication technology paradigm? A neo-Schumpeterian possibility is hydrogen, in the form of fuel cells. But whether a hydrogen-based society (and economy) can be called 'green', in the sense of the environmental principles espoused by Schumacher, is highly debatable. A less explored possibility - local self-sufficiency - is much more attuned to Schumacher's ideals. This would require people (and their labour) to become the new 'key factor' in a green TEP.     

Education and the State

In the ethics-economy debate, money and credit have acquired growing significance. Moral judgements on some aspects of money and credit emerged particularly in the late medieval period when their development led the economic system towards capitalism. Scholarly Islamic and Christian analyses show that the evolution of money and credit may have triggered prejudices about the ethically-based rules underpinning the economy and society. Thought on the late medieval monetary and credit institutions highlight points of contact between Christian and Islamic ethical codes which are still of great interest, especially for the identification of a shared ethics going beyond business.     

The shallow or the deep ecological economics movement?

Ecological economics and its policy recommendations have become overwhelmed by economic valuation, shadow pricing, sustainability measures, and squeezing Nature into the commodity boxes of goods, services and capital in order to make it part of mainstream economic, financial and banking discourses. There are deeper concerns which touch upon the understanding of humanity in its various social, psychological, political and ethical facets. The relationship with Nature proposed by the ecological economics movement has the potential to be far reaching. However, this is not the picture portrayed by surveying the amassed body of articles from this journal or by many of those claiming affiliation. A shallow movement, allied to a business as usual politics and economy, has become dominant and imposes its preoccupation with mainstream economic concepts and values. If, instead, ecological economists choose a path deep into the world of interdisciplinary endeavour they will need to be prepared to transform themselves and society. The implications go far beyond the pragmatic use of magic numbers to convince politicians and the public that ecology still has something relevant to say in the 21st century.     

On Keynes' inverse relation between real wages and employment: a debate over excess capacity ∗

This article examines Keynes's argument in favour of an inverse relation between employment and the real wage rate. In examining the debate over the inverse relation that took place during the 1930s the article argues that the failure of Keynes's critics to persuade him to relinquish the inverse relation can be traced to his own unrecognized use of a concept of marginal productivity different from theirs but that the larger unresolved issues persisting throughout that debate and continuing till the present are those relating to the formulation of ‘excess capacity’ during a depression and the specification of the supply side of the underemployed economy. Drawing on that debate but contrary to Keynes's own response, the article will propose a respecification of excess capacity such that the labour market directly incorporates aggregate demand independently of changes in the price level, and where an increase in employment is not predicated on a reduction in real wages even in the presence of (neoclassical synthesis) diminishing returns.     

Profit Expectations and Confidence: Some unresolved issues in the Austrian/Post-Keynesian debate

Austrian and Post-Keynesian economists both continue to make important contributions to subjectivism in economics. Yet, as the ongoing debate between members of the two schools demonstrates, Austrians and Post-Keynesians have very different views about the possibility of intertemporal coordination in a market economy. This paper returns to the debate between Hayek and Keynes in order to respond to a contemporary Austrian critique of Keynes's theory of expectations. The paper shows that the fundamental difference between the two schools ultimately boils down to the nature of conventional expectations and the question of confidence. If the conventional expectation holds to assume the future will look enough like the present to give investors confidence in their decisions, Hayek's arguments about the possibility of intertemporal coordination merit attention. If, however, this convention does not hold, as Keynes thought was sometimes likely, the self-regulating potential of a market economy is called into question.     

The Migratory Worker in American Agriculture

The debate over the minimum wage is often conducted on a technical level, primarily focusing on the effects of wage increases. In recent years the debate has often been between those who maintain that increases in the minimum wage will result in disemployment, particularly among teenagers, on the one hand and those who maintain that increases will offer much needed assistance to the poor on the other. Lost in this focus have been serious discussions of the ethical grounds for such a policy. Core to the issue of the minimum wage are questions of justice and the type of society we would like to create. This article argues that the technical approach to the minimum wage so often taken is an outgrowth of a particular conception of justice, one predicted on liberal neutrality. A different conception of justice would enable us to view the minimum wage as but one tool for achieving other social objectives. Moreover, a justice approach to the minimum wage would enable us to consider our values because we would be required to engage in a more philosophically grounded discussion of the policy and the issues it raises.     

可持续发展能力空间结构研究的理论问题探讨

“可持续发展”与“可持续发展能力”的差异是我们经常忽略的。但一旦说到“能力”,由于可持续发展在人们心目中是一个极其复杂的系统,所以就要把经济、社会和生态与环境三个系统的能力都包括进去,于是就有了虽然可以避免偏颇但却日显庞大的用于测度的指标体系。文章认为,从哲学上看,地理环境如果离开人类的发展就没有其存在和对其进行研究的意义,经济系统的能力在三个系统中是最基本的,而经济系统的能力可以被看作为了实现可持续发展所要求的“支付能力”。根据环境经济学的原理,这个支付能力只能是政府提供“公共物品”的能力,文章进一步认为,政府的财政能力又是最基本的。在明确这个基本原理后,就可以使测度变得更容易,一是克服一个大的指标体系中本来不相关的指标的叠加,二是使其简便,三是使政策成为必然——哪些地方缺少能力和哪些地方能力相对剩余和政府应该怎样去配置能力。这就是能力的空间结构和促进空间关系发展的区域政策。     

Distortions in the trade policy for development debate: A re-examination of Friedrich List

This paper re-examines the works of Friedrich List and arguesthat he had a vision of how to promote economic and social developmentfrom the initial state of an advanced agricultural society thathas been distorted in the trade policy for development debate.It shows that his vision is much broader than the orthodox labelof ‘protectionism’ conveys. He thus proposed manymethods of promoting development, cautioned and suggested measuresagainst the drawbacks of protection, and emphasised exports.It is hoped that this paper will contribute to the debate onthe wisdom behind the current push toward trade liberalisation.     

构建和谐城市要反思城市化的历史经验

城市是我国经济、政治、科学技术、文化教育的中心，是现代工业集中的地方，是现代国家经济社会的主要载体，又是经济社会发展的基础，还是各种利益整合、各种矛盾交错的平台。民主法制、公平正义、诚信友爱、充满活力、安定有序、人与自然和谐相处，是构建和谐城市的根本指导思想和基本目标。“十一五”时期，我们要努力构建和谐城市，就要认真总结国内外城市化的经验教训，反思城市化的历史经验，重新审视我国的城市发展模式。     

Industry policy in Australia: debate and practice

This article analyses the debate over industry policy in Australia since the election of the Hawke Labor government in 1983. The social contract ‘Accord’ between that government and the union movement has been used by the latter to advance its own vision of industry policy. In contrast to most other parties associated with the formulation and implementation of industry policy, the unions have promoted interventionist mechanisms to lift output and investment. Much of the intellectual rationale, and some of the actual policy initiatives, are drawn from overseas, but the more singular union achievement has been the political strategy developed to convert ideas into innovative policy.     

Who should be precautionary? Governance of nanotechnology in the risk society

This article focuses on one important ethical and political element in the development of nanotechnologies: the relevance and importance of the precautionary principle. The principle recommends political actions based upon experiences and early scientific warnings, even when there is no clear scientific evidence to prove causal links. Our chief contribution to the discussion about the precautionary principle in nanotechnologies is the development of the stakeholder approach in a governance perspective. We link our article to the theoretical and empirical discussions on risk society. In at least two ways the risk society of Ulrich Beck seems highly relevant for the precautionary principle within nanotechnologies: Precautionary actions represent one model for the society to deal with modern risks; and Beck redefined the relation between science and society. This article is based upon qualitative interviews with four groups of stakeholders in Norway: (1) non-governmental organizations—consumer, environment, health; (2) political authorities and politicians; (3) industry and businesses; and (4) the scientific community. In the present phase of the development of nanotechnologies, the responsibility for taking precautionary actions are, to a large extent, placed on the individual researcher and the scientific community. We have identified seven issues in the interviews that are pertinent for the scientific and political discourse about nanotechnologies.     

Market, civic virtues, and civic bargaining in the medieval and early modern age: some evidence from sixteenth century Italy

In the last decades, historians have shown that the modern market is rooted in the institutional system created in European towns since the middle ages. This approach leads us beyond the usual opposition between market and society or between public and private market. Indeed, in the medieval and early modern age, the market was part of a wider institutional design of civil life, which had a basic conceptual frame of reference in the notion of the common good, a feature typical of such organicistic and hierarchical societies. This paper explores the process of market construction in the medieval and early modern age. I firstly analysed the role of the market in these societies and then focused on the case of foodstuff provision: a key element of the non-written, ancient pact between rulers and people, based on the assurance of subsistence. As a basis for the study, I employed sixteenth century documents regarding Vicenza, a medium-sized town in the Republic of Venice. These show very clearly that, in general, market and price regulation was not the result of arbitrary interventions by public authorities; on the contrary, it was the result of a process of negotiation, which I call civic bargaining. This process involved??to various degrees??public authorities, landowners, merchants and guilds, and the town??s people, the pursuit of the common good being, in practice, a matter of balancing various needs and interests. Present-day economic and social public policies are, in many aspects, an inheritance of the institutional system created in the medieval and early modern age: knowledge of these origins is useful in the present debate regarding economic versus social development, as discussed at the end of the paper.     

Crystallizing the nanotechnology debate

Much of the initial commentary on nanotechnology assumed, implicitly or explicitly, that nanotechnology represented a radical discontinuity from existing science and technology. The birth of the nanotechnology debate was marked by the differences of opinion as to whether the technology's outcomes would be positive or negative. The authors trace the journey from this polarized debate to the current discussion of nanotechnology, finding that the latter is still conducted in the parameters set by the initial utopian and dystopian extremes. Yet the discussion now focuses on defining the technology and identifying the social and ethical issues, which are often reduced to the potential risks of toxicity and the need for public engagement. The authors argue that nanotechnology is erroneously treated as homogeneous and is under-analysed; it is the very diversity and transdisciplinary nature of nanotechnology that makes it distinctive and interesting to social science enquiry. In this way, it may yet be prototypical of Gibbons et al. 's 'Mode 2' science. The focus of social science research should be less on the implications of nanotechnology, and more on its creation, the processes through which it develops and the alternative perspectives underlying this. The authors conclude by outlining core elements of a social science agenda for nanotechnology.     

The political economy of wage-earner funds: policy debate and Swedish experience

Various European proposals for wage-earner funds are briefly surveyed. The central issues of the policy debate surrounding these funds are then discussed. It is argued that the outcome of this debate was not determined solely by a rational appraisal of the economic costs and benefits of the various policy options. Wage-earner funds raise questions concerning the ownership and control of capital and have therefore been the focus of political conflict between powerful interest groups. The paper then analyses the experience of wage-earner funds in Sweden, dealing with their objectives, behaviour and economic performance.     

John Stuart Mill's utilitarianism and the social ethics of sustainable development

This paper considers the writings of John Stuart Mill in political philosophy and political economy as a prototype for ideals of a 'sustainable development' grounded in a norm of justice and social solidarity. Mill's conception of a just 'stationary state* of society is examined alongside his attempts to reconcile precepts of non-interference (individual freedom) and private property, with the constraints and obligations of social, economic, and ecological coexistence. It is shown that notwithstanding vaccillations, Mill ends up espousing an ethical norm of reciprocity and solidarity that is quite different from the premise of self-interest axiomatized in most economic models of competitive market economies. These intuitions about a duty of care complementary to the non-interference principle, when systematized, are shown to find a new contemporary application to questions of economic justice and environmental sustainability.     

论新时代绿色共享经济发展的瓶颈和路径

随着经济全球化和信息技术的发展,绿色共享经济作为一种新经济模式逐步兴起,成了市场经济发展的新的驱动力。绿色共享经济增加了供给和服务,为经济增长做出了很大贡献,也推动人们的生活向着更文明更生态的方式转变。绿色共享经济适应了生态文明的需要,能够推动经济增长模式转变,促进人与自然的和谐。绿色共享经济体现着人与自然、人与社会、人与人的关系,体现着现代文明理念,需要进一步发展绿色生态循环经济,开发生态技术,建立现代性的经济模式。     

Foresight: A major tool in tackling sustainable development

For many decades, the concept of sustainability has been highly successful in public policies and even in the business world.¹ Nowadays, all initiatives must be sustainable and are primarily assessed on that criterion. However, the efforts made to construct specific methods dedicated to building sustainable strategies seem rather weak. Futurists themselves underestimate the relationship between sustainable development and foresight, even if they are talking about sustainable planning.² They remain generally unaware that foresight could be a major tool in tackling sustainability as well as one of the best methods of preparing sustainable strategies and policies.Indeed, one of the biggest problems in sustainability approaches is the simplistic way used to define the concept, for instance, by using only the very first part of the 1987 the Bruntland report Our Common Future and by limiting the fields of activity on sustainability to the three pillars of the OECD model: economy, social questions, environment.At the Copenhagen United Nations Climate Change Conference (December 2009), it seemed forgotten that sustainability is already an old issue in which futurists were heavily involved at the time of the United Nations Stockholm Environment Conference (1972), in the Limits to Growth Report, published by the Club of Rome (1972)³ and in the OECD Interfutures Foresight, spurred on by Jacques Lesourne (1978).⁴Since that time (forty years ago!) researchers and consultants have learned how to deal with the concept of sustainability, how to analyze it as an ultimate aim for society as a whole as well as a complex object that needs to be approached with adequate methods such as systemic analysis.As Christian Stoffaës said, the aim of foresight is sustainable development in a changing world. As a result, the ultimate aim of strategic foresight appears to be clear: it is sustainability. This article highlights that fundamental relationship as we see it today.⁵     

How substitutable is natural capital?

One of the recurring themes in the sustainability literature has been the extent to which a loss of natural capital can be made up for in welfare terms by an increase in other forms of capital. This issue was raised early on in the debate on sustainability by Pearce and has never really been resolved. This paper is an empirical attempt to measure the degree of substitutability between different forms of capital. A nested CES production function is used to allow flexibility in the estimated elasticities of substitution. Also, within this specification, natural resources and other inputs are combined in different levels of the function, thus allowing for different levels of substitutability. Institutional and economic indicators are also incorporated in the production function estimated. Results show that the elasticities derived from functions involving land resources were generally around one or greater, implying a fairly high degree of substitutability. Furthermore, changes in trade openness and private sector investment have a statistically significant and direct relationship on the efficiency of production and hence on income generation. No statistically significant relationship between income and any of the institutional indicators was found.