Beyond the Growth Paradigm

"It is no measure of health to be well adjusted to a profoundly sick society." J Krishnamurti

Following on the previous blog, just came across this from the excellent Adbusters in Canada and the latest edition of their magazine 'Thought control within economics' . Another analysis of the need to overturn the dominance of neo-classical economics within the academy https://www.adbusters.org/magazine/85/textbook-insurgency.html

Other inspiring sources of the fightback against this neo-classical hegemony is the 'decroissance' or 'degrowth' movement in France and the 'Toxic Textbook' campaign http://www.toxictextbooks.com/ of which I'm a member here in Ireland -more anon as soon as anything's organised. One great aspect of this latter campaign is its provocative 'health warning' stickers it has designed to be put on neo-classical economic textbooks- see above.

Its not that the neo-classical model has necessarily got it all wrong or is necessarily 'bad' but its hegemony is stifling pluralism and exposing students in Universities to different perspectives on economics, what the economy is, how it can or should be organised, with what principles, institutions etc. etc.

I sometimes think there is a lot of parallel between the struggle in Eastern Europe against communist domination and this similar intellectual (but with very real effects) struggle against the tyranny of neo-classical economics. and the pressing need for it to be returned to its proper position as one amongst many approaches, not the only, or necessarily the best. I'm reminded here of the following "Economists give answers not because what they say is true, but because they are asked".

Limits to and beyond 'economic growth'

Went to an excellent talk by Prof. Tim Jackson - Economics Commissioner of the UK's Sustainable Development Commission http://www.sd-commission.org.uk/pages/tim-jackson.html - at Queens last night 'Northern Ireland and the Transition to a Sustainable Economy'. Tim author of the SDC's report Prosperity without Growth - http://www.sd-commission.org.uk/pages/redefining-prosperity.html - out next month as a book -Prosperity without Growth: Economics for a Finite Planet - http://www.earthscan.co.uk/?tabid=92763. What was one of the most interesting aspect of the evening - extremly well attended - was the utter silence from those who one would have imagined were defenders of the orthodox economic growth perspective in the audience (neo-classical economists, senior policy-makers etc.). Not one question or comment came from those in the lecture whom I would have expected to defend what Tim was criticising. Reflecting on this afterwards I suggested that 'power does not need to speak', the brave defenders of the economic status quo do not need to defend it with reasoned arguments. No doubt there was much mutterings afterwards about how utterly wrong Tim's analysis is, how impractical etc., but in public...silence and no sign of reaction, except the discernable stiffening of backs and shifting in seats. But nada by way of publicly defending what they believe....

Northern Ireland Economic report on Innovation contains little innovative thinking

In Northern Ireland, the Barnett review - Independent Review of Economic Policy (DETI and Invest NI) - http://www.irep.org.uk/Docs/report.pdf - published yesterday, is weighty and provides much food for thought in terms of the economic challenges and opportunities for NI. However whether the NI executive (aka Sinn Fein and the DUP) will use it to create a new economic strategy or whether it will sink only time will tell (my bets are on the latter). Some of the main findings of the report - commissioned by the Department and Enterprise Trade and Investment - are outlined below.While the report finds that Invest Northern Ireland has contributed to job creation and NI's overall economic performance, it confirms the views of those, like me, who have viewed NI's economic strategy as partly a 'race to the bottom' in terms of seeking low-wage and insecure service sector jobs. As the report puts it:"When compared to other UK regions, NI has attracted a higher number of new foreign-owned investment projects and promoted a higher number of jobs per head of population. However, many of these jobs, particularly those in the service sector, offered wages below the private sector average (e.g. contact centres). Furthermore, a significant proportion of support was associated with safeguarding jobs in the manufacturing sector" (p.7).While recognising that a lot of the policy drivers affecting economic performance lie outside the NI Executive, it also notes the lack of improvement in NI's productivity and sees R&D as a key driver of economic growth, which it views as - surprise, surprise - FDI attracting and export-led. One of the report's most striking recommendations - and one likely to cause perhaps most political upset within the NI executive - is the proposal for the creation of a single 'Department of the Economy' - (requiring the amalgamation of two existing Departments - DETI (which the DUP hold) and DEL (which the UUP hold)). Re-carving political power within the 4 party executive - especially given the increasing hostility betwene the DUP and UUP - is not politically feasible, even though it make make economic and policy sense (but then when did the latter have anything to do with how the NI executive operates?!).Another, unsurprising finding is that Universities should support STEM and 'Innovation relevant' subjects more (which in the current financial constext facing Universities in NI means less 'non-economic' subjects, and further increasing the trend towards viewing the primary role of University as providing skills for the economy), and create more industry-university innovation links. However, the report also suggests the creation of: "A new institution for commercially-oriented research should be explored in NI, along the lines pioneered by the successful VTT institute in Finland. The institution should be outside the University system and not subject to the constraints of the Research Excellence Framework (REF)" (p.10). So, speaking as an academic, the authors of the report either thought universities were not deemed to be up to the task, or were inappropriate, or that it was accepted that there is some scope (just) and rationale for universities to also engage in non-economic research and teaching. If the latter - how big of them!There is mention of the 'Green New Deal' (and indeed support for the social economy) for NI but this is not seen as a central plank for economic recovery. Here the report echoes the short-sightedness of the Matrix report - http://www.matrix-ni.org/ which likewise viewed a green, low-carbon economic strategy as something that was of future, but not of immediate relevance to the regional economy in NI.It views the Green New Deal not as a distinct, innovation-led strategy to provide jobs,enhance energy security and begin the process of putting Northern Ireland on a 'low carbon' path, but as something which merely contributes to 'energy saving and conservation' (p.11) as part of the 2008 Strategic Energy Framework. Sadly, this indicates to me the authors of the report did not either read what the GND is about and what they possibilities are for a GND in NI, or did and decided rather to present a conventional 'business as usual' economic analysis and set of recommendations.While the report does outline some good ideas, provides a wealth of information, data and critical analysis of the NI exeutive's economic policy, it is regretable for a report that focuses on and arguges for the centrality of 'Innovation', that it contains precious little innovative economic thinking.