Assignment Paper on: Economic Methodology
Introduction
The economy is the basic
element and wealth of the whole world. The whole world is in control of
economy. The shape of today’s world is a result of the rise of the West and
subsequent Europeanization of the globe. Europe became the center of a truly
world political and economic system: political with its balance of powers and
economic with its system of “World Economy”.
The basic economic fact
in today’s world is that while minorities of the world’s people are growing
richer, the majority are growing poorer. Economic
justice is a concept in which the economic policies must result in distribution
of benefits equally to all.
On the other hand, economical injustice and inequality are
existing in the family, society and nations.
Scholastic philosophers addressed ethical questions
concerning economic behavior, and they condemned ‘usury' -- that is, the taking
of interest on money. Economic anthropology is the study of primitive and peasant
economies wherever they exist in the world, in its broadest form encompasses
economic and technological systems. The economy has a vital role in
Christian mission.
1. Philosophical Reflection on Economic Methodology
Philosophical reflection on economics is ancient, but the
conception of 'the economy' as a distinct object of study dates back only to
the 18th century. Aristotle addresses some problems of economics mainly as
problems of household management. Scholastic philosophers addressed ethical
questions concerning economic behavior, and they condemned 'usury' -- that is,
the taking of interest on money[1]
2. Methodology of Economical
Justice
Economic justice is a concept in which the economic policies
must result in distribution of benefits equally to all. [2]
Economic justice must touch both the individual and the social order.[3]
Most economic institutions are designed upon the principle of economic justice.[4]
Economic justice mainly aims at giving freedom to each person to engage
creatively in unlimited work. [5]According
to the principles of economic justice the jobs created by state and local tax
incentives must go to local people and taxpayers without any discrimination.[6]
Modern economics springs
from the search for a definition of economic justice, but has largely
abandoned that search. Thus, 19th-century utilitarian economists, such
as John Stuart Mill, spent much of their time searching for the principles that
would lead to a condition of equity. But by the 1940’s, economists reluctantly
came to the conclusion that there were no economic statements that
could be made about equity. In this they were in agreement with moral philosophers
and other social scientists that no ethical statements can be deduced from
purely factual or purely logical statements-the only two kinds of statements to
be found in modern economic theory. By the 1950’s questions of economic equity
were not even discussed in the basic textbooks, except to note that it was
necessary for a market economy to start with a “just” distribution of economic
resources.[7]
2.1. Marxist Theory of Economic System
The Marxist theory of historical materialism
understands society as fundamentally determined by the material conditions
at any given time - this means the relationships which people enter into with
one another in order to fulfill their basic needs, for instance to feed and
clothe themselves and their families. In general Marx and Engels identified five successive stages of the development of
these material conditions in Western Europe.[8]
The First Stage: is
usually called Primitive[9] Communism. It has the following characteristics. 1) Shared
property: there is no
concept of ownership beyond individual possessions. All is shared by the tribe
to ensure its survival. 2) Hunting and gathering: tribal
societies have yet to develop large scale agriculture and so their survival is
a daily struggle. 3) Proto-democracy: there is usually no concept of
"leadership" yet. So tribes are led by the best warrior if there is
war, the best diplomat if they have steady contact with other tribes and so
forth.[10]
The Second Stage: may be
called Slave Society,[11]
considered to be the beginning of "class society" where private property appears. 1) Class: here
the idea of class appears. There is always a slave-owning ruling class and the slaves themselves. 2) Statism: the state develops during this stage as a tool for the
slave-owners to use and control the slaves. 3) Agriculture: people
learn to cultivate plants and animals on a large enough scale to support large
populations. 4) Democracy
and Authoritarianism: these opposites develop at the same stage. Democracy arises
first with the development of the republican city-state, followed by the
totalitarian empire. 5) Private
Property: citizens now own more than personal property. Land
ownership is especially important during a time of agricultural development.[12]
The Third Stage: may be
called Feudalism; during feudalism there are many classes such as kings,
lords, and serfs, some little more than slaves. Most of these inherit their
titles for good or ill. At the same time that societies must create all these
new classes, trade with other nation-states increases rapidly. This catalyzes
the creation of the merchant class. Out of the merchants' riches, a capitalist
class emerges within this feudal society. However there are immediate conflicts
with the aristocracy. The old feudal kings and lords cannot accept the new
social changes the capitalists want for fear of destabilizing or reducing their
power base, among various other reasons that are not all tied to power or
money.[13]
The Fourth and Fifth: may be called as Capitalism and Socialism; that socialism would be
the best means for developing a backward economy is of course not what Marx
envisioned at all. Societies passed through stages of feudalism to capitalism
to socialism; there was an historical necessity and inevitability to this
process. This meant that the socialist revolution had to come first to the
advanced capitalist countries.[14] The
fact that it happened first in Russia caused great ideological consternation,
but the theory soon adjusted to the new reality. And today in the advanced
countries only dreamers imagine the possibility of revolution. Even the
communist parties of Europe have gone the way of their social democrat
predecessors in becoming “revisionist”.[15]
Capitalism is an economic
cultural system, organized economically around the institution of property and
the production of commodities and based culturally in the fact that exchanging
relations.[16]
Capitalism alone taps into modern beliefs about individuality and exploits what
some would consider the baser human motives, greed and self-interest, to
produce rising standards of living. When it comes to catering to the wants and
desires of every individual, no matter how trivial those wants seem to others,
no system does it even half so well.[17]
The world “socialism” in
the Third World has all but lost any meaning, but as a minimum requirement it
can mean today a system where the major productive facilities are owned and
operated by the state and where there is comprehensive economic planning. This
is, as contemporary history shows us, no guarantee for undoing
underdevelopment, but it seems the one system capable of mobilizing resources
for national development and holding enough monopoly power to withstand
domination of the economy by foreigners.[18]
Economics deals with the
allocation of limited resources,[19]
material goods and human property and with the labor associated with producing,
distributing, and maintaining them.[20] The
Economic system is being basically feudal and individualistic and the
improvement of the economic condition under this system being largely the
responsibility of the individuals, places these poor people in a very unfair
competition with the people that have power of tradition, culture, politics,
Government and money. [21]
Their lot remains unaltered, in spite of reservations for political
representation. [22]
Even this weapon is moulded to fit into the exploitative social and economic
system of the country[23], thus
rendering the political weapon blunt and useless.[24]
The disparity between
rich and poor can be seen in every part of the world.[25] Despite
all the effort, both scientific and applied, the poor continue to grow poorer
and the hungry hungrier.[26] The
wealth must be equally divided and distributed.[27] The
poverty and other economical issues are also increasing because of economical
injustice.[28]
The nations are
developed, developing and underdeveloped.[29]
“Development is a process, which enables human beings to realize their
potential, build self confidence, and lead lives of dignity and fulfillment.[30] It is a
process, which frees people from the fear of want and exploitation.[31] It is a
movement away from political, economic, or social oppression.[32] It is
clear that the declared purpose of development is aimed at the eradication of
poverty, ignorance, and disease. [33] Most
developing countries failed to see that such figures could conceal the poverty,
suffering, and injustice that where the very ills they were eager to cure.[34]
It was the 19th
century that shaped today’s world, divided between the developed and the
under-developed. The world-view of this doctrine was that if the world economy
were left alone it would produce prosperity for all.[35] All
people have a right to participate in the economic life of society. [36]
4. The Methodology of
Anthropologists Study of Economics
Anthropologists study the
means by which goods are produced, distributed, and consumed in the context of
the total culture of particular societies. Although they have borrowed theories
and concepts from economists, many anthropologists feel that principles derived
from the study of Western market economies are not applicable to economic
systems where people do not produce and exchange goods for profit.[37]
Economic anthropology is the study of primitive and peasant economies wherever
they exist in the world. The study in its broadest form encompasses economic
and technological systems.[38]
Economic systems involve
the ways people, time, and materials are organized to produce, distribute (and
redistribute), and consumer goods and services. [39] Such
goods and services include the following:
1. Food for the physical sustenance along with goods and
services for religious, defense, and justice purposes; rites of passage; and
other aspects of social and community life.
2. Natural resources such as land, water, and minerals; human
cooperation involved in the division of labor; and technology.
3. Market places, foreign trade, monetary objects, devices for
measuring and record keeping.[40]
5. The Biblical Considerate
of Economic Justice
Yahweh the God of Economic
Justice[41], always
takes side with the poor and the weak to do justice. Yahweh never tolerates
injustice and that is why Yahweh many a time denounced Israel’s wrong doing.[42] Hosea 13: 5-6 explicitly
states that even though Yahweh ‘care for you in the wilderness, in a land of
drought, as if you were in the pasture,’ you ‘forgot Yahweh’ becoming ‘an
oppressor trampling on justice, doggedly perusing what is worthless.’ Because Yahweh
will not permit the triumph of evil, Israelites must be punished for their
wrong doings.[43]
The Society of Jesus day was highly
stratified.[44]
In such a context,[45] economic justice occupies a central place in
his proclamation. He declares that the poor are blessed.[46] Jesus
praxis entails establishing a new kind of solidarity[47] above
and beyond class differences and other differences inherent in human life.
Jesus seeks to defend the rights of all, especially the rights of the poor, the
low, the sick and the alienated. Jesus opposes everything that divides human
beings on the lines of envy, greed, calumny, oppression, hatred and so on.[48]
6. The Indian Economy
Almost half a century has passed since India[49]
gained its independence, but it has yet to join the ranks of the developed
countries.[50] That is
a dream still to be realized. And this is in spite of India being a large
country with all kinds of potential resources of men and material.[51]
The index of
vulnerability measured in terms of social and economic inequality is
threatening India’s economic stability. India has both the highest number
agriculture and other economic resources. Predominantly agricultural with 64%
of the labor force, but rapid industrialization and urbanization is taking
place. India is now a nuclear power and has a space industry. It is one of the
world leaders in computer software production. Economic growth accelerated in
the 1990s but has been offset by high birth rate, illiteracy, prejudice,
widespread corruption and bureaucratic inefficiency. The 250 million middle class
would benefit most from the market reforms and liberalization being instituted.
Over 600 million live in deep poverty, and 300 million live below the bread
line. India’s widespread use of English gives the country a major advantage as
its economy opens up to the world.[52]
Conclusion
Despite all the effort,
both scientific and applied, the poor continue to grow poorer and the hungry
hungrier. It was the 19th century that shaped today’s world, divided
between the developed and the under-developed. “Development is a process, which
enables human beings to realize their potential, build self confidence, and
lead lives of dignity and fulfillment. Most developing countries failed to see
that such figures could conceal the poverty, suffering, and injustice that
where the very ills they were eager to cure. Marx and Engels identified five successive stages of the development of
these material conditions in Western Europe such as, primitive communism, slave society, feudalism, Capitalism and Socialism. The world-view of this
doctrine was that if the world economy were left alone it would produce
prosperity for all. All people have a right to participate in the economic life
of society.
Yahweh the God of
Economic Justice, always takes side with the poor and the weak to do justice.
Yahweh never tolerates injustice and that is why Yahweh many a time denounced
Israel’s wrong doing. Jesus opposes everything that divides human beings on the
lines of envy, greed, calumny, oppression, hatred and so on. Paul envisions a community that is characterized by mutual sharing and
solidarity.
India has both the
highest number agriculture and other economic resources. The index of vulnerability measured in terms of social and
economic inequality is threatening India’s economic stability.
Notes
[1] Daniel M. Hausman, "Economic
Methodology" http://philosophy.wisc.edu/hausman/papers/enc-617.htm
(accessed 01/ 07/ 2012).
[2] "What Is "Economic
Justice"?"
http://www.ibdeditorials.com/IBDArticles… (accessed 06/ 06/ 2012).
[3] "Economic Justice Law & Legal
Definition ",
http://definitions.uslegal.com/e/economic-justice/ (accessed 06/ 06/
2012).
[4] "My Take On "Economic
Justice?"",
http://answers.yahoo.com/question/index?qid=20080730054004AA9MdE4
(accessed 06/ 06/ 2012).
[5] "Economic Justice",
http://www.businessdictionary.com/definition/economic-justice.html#ixzz10IBXPquz
(accessed 06/ 06/ 2012).
[6] "Economic Justice Law & Legal
Definition ", (accessed).
[7] Lester C. Thurow, "Toward a
Definition of Economic Justice" http://www.nationalaffairs.com/public_interest/detail/toward-a-definition-of-economic-justice
(accessed 06/ 06/ 2012).
[8] "Marx's Theory of World
Economic",
http://en.wikipedia.org/wiki/Marx's_theory_of_history (accessed 01/ 07/
2012).
[9] The primitive communism stage most likely begins soon after the dawn of
humanity itself, at the stage where fire is developed, and communal living
therefore becomes more convenient. Primitive communist societies tend to be very
small, consisting of a maximum of a few hundred members, with size being
dependent upon the environment. In this stage humanity is no different from any
other animal, in that it has not yet found ways to bend nature to its will.
This stage ends with the development of private property, especially with the
development of large scale agriculture. This in turn produces
productive property, such as cattle and slaves. [Ibid., (accessed).]
[10] Ibid.,
(accessed).
[11]
The
slave-owning class “owns" the land and slaves, which are the main means of
producing wealth, whilst the vast majority has very little or nothing. The
property less included the slave class, slaves who work for no money, and in
most cases women, who were also dispossessed during this period. From a Marxist
perspective, slave society collapsed when it exhausted itself. The need to keep
conquering more slaves created huge problems, such as maintaining the vast
empire that resulted (i.e. The Roman Empire). It is ultimately the aristocracy born in this epoch that
demolishes it and forces society to step onto the next stage. [Ibid., (accessed).]
[12] Ibid.,
(accessed).
[13] Ibid.,
(accessed).
[14] Bernard Nossiter, "Getting Trough
with Poor Nations," in The
Development Apocalypse, ed. Stephen C. Rose and Peter Paul Van Lelyveld
(New York: Youth Department, World Council of Christian Education, 1967), 32.
[15] Etim N. E. Udoh, "International
Justice Today: Myth or Reality?," in The
Development Apocalypse, ed. Stephen C. Rose and Peter Paul Van Lelyveld
(New York: Youth Department, World Council of Christian Education, 1967),
40-41.
[16] Indukuri John Mohan Razu, Global Capitalism as Hydra (Delhi:
ISPCK, 2006), 17.
[17] Ibid., 3.
[18] James Becket, "The World Economy:
Short on Change," in The Development
Apocalypse (0r) Will International Injustice Kill the Ecumenical Movement?,
ed. Stephen C. Rose and Peter Paul Van Lelyveld (New York: Youth Department,
World Council of Christian Education, 1967), 25.
[19] Andreas Kostenberger,
"Economics," in Evangelical
Dictionary of World Missions, ed. A. Scott Moreau, Harold Netland, and
Charles Van Engen (grand Rapids: Baker Books, 2000), 297.
[20] Paul G. Hiebert, Cultural Anthropology (Grand Rapids: Baker Book House, 1997), 299.
[21] Becket, 12-13.
[22] Becket, 11.
[23] In a country with a
developing economy, where a vast majority of the people is living at a
subsistence level, higher agricultural and industrial production is a prime
necessity. If the standards of living of the masses are to be improved and the
basic conditions of civilized existence are to be Ugured to them, higher
production will have to be ensured through greater private and public
investment. ["Economic Growth with Social Justice", http://essaysandarticles.com/search/economic-justice-in-india/
(accessed 06/ 06/ 2012).]
[24] K. Rajaratnam, "A Methodology for
Transformation of Rural Society," in Ecumenism:
Prospects and Challenges, ed. Vinod Victor, Leslie Nathaniel, and Surya
Prakash (Delhi: ISPCK, 2001), 144.
[25] Julia Fleming, "The Right
Reputation and the Preferential Option for the Poor," in Studies in Christian Ethics, ed.
chrysene Gudorf and Paul Lauritzen (Kotayam: Andreas-Punnoose Publishing
Company, 2009), 583-84.
[26] "Definition: Economic Justice for
All",
http://www.disciplesnow.com/articles/430/index.html (accessed 06/ 06/
2012).
[27] Ibid.: 585.
[28] Jose Kuriedath, "Globalization
Market Economy and Increasing Poverty," Jeevadhara XXXIX, no. 232 (July 2009): 262.
[29] Prechard B. M. Basaiawmoit,
"Towards Koinonia - a True Community," in Ecumenism: Hope in Action, ed. Aruna Gnanadason (Nagpur: National
Council of Churches in India, 1990), 36.
[30] Rudolf C. Heredia, "Option for the
Poor and the Local Church," Vidyajyothi
Journal of Theological Reflection 67, no. 7 (July 2003).
[31] Paulos Mar Gregorious, Global Peace and Common Security (Delhi:
Mar Gregorios Foundation & ISPCK, 1998), 2-3.
[32] Becket, 12.
[33] O. L. Snaitang, A History of Ecumenical Movement: An Introduction (Bangalore:
BTESSC/SATHRI, 2010), 217.
[34] Mathews George Chunakara,
"Sustainable Development and Economic Growth in the South Amidst Negative
Impact of Globalization; Challenges to the Ecumenical Movement," in Ecumenism: Prospects and Challenges, ed.
Vinod Victor, Leslie Nathaniel, and P. Surya Prakash (Delhi: ISPCK, 2001),
50-51.
[35] Ibid., 13-14.
[36] "Definition: Economic Justice for
All", (accessed).
[37] William A. Haviland, Anthropology (New York: CBS college
Publishing, 1985), 411.
[38] Stephen A. Grunlan and Marvin K.
Mayers, Cultural Anthropology
(Michigan: Zondervan Publishing House, 1988), 107-08.
[39] James Becket, "The World Economy:
Short on Change," in The Development
Apocalypse (0r) Will International Injustice Kill the Ecumenical Movement?,
ed. Stephen C. Rose and Peter Paul Van Lelyveld (New York: Youth Department,
World Council of Christian Education, 1967), 11.
[40] Ibid., 108.
[41] Yahweh is the protector
of the poor and the establisher of right for those who are oppressed. To know
him is to experience Yahweh’s acts in the concrete affairs and relationship of
people such as liberation the weak and helpless from suffering and humiliation.
Yahweh’s special concern in to execute justice for the poor and the widow and
this emphasis takes the central place in Jeremiah’s prophecy. “For among my
people there are wicked men; their houses are full of fraud; as a cage is full
of birds, they grow rich and grand, bloated and rancorous; their thoughts are
all of evil, and they refuse to do justice; The claims of the orphan they do
not put right nor do they grant justice to the poor,” (Jer. 5: 26-28). The poor
are Yahweh’s own and special possession. They are the people. The divine has
called into being to accord freedom to these people. Therefore, as the
sovereign king of people whose existence is dependent upon God’s saving power,
Yahweh Judges Israel in the light of their treatment towards the poor. [James H. Cone,
"Biblical Relation and Social Existence," Interpretation: A Journal of Bible and Theology XXVIII (October,
1974): 424-28.]
[42] Mark Aamot,
"Biblical-Social-Economic-Justice"
http://www.efremsmith.com/category/blog/2009/07/biblical-social-economic-justice/
(accessed 06/ 06/ 2012).
[43] Cone: 453.
[44] Jesus’ praxis is eminently social and
public in character. It touches upon the structure of society and religion. The
liberative nature of Jesus’ actively shows up clearly in his social relations.
[Gunter Klein, "The Biblical
Understanding of the Kingdom of God," Interpretation:
A Journal of Bible and Theology XXVI, no. 387-93 (October, 1972): 387.]
[45] There were neighbours and
non-neighbours, pure and impure, Jews and Gentiles, men and women, and the
observers of the Torah and ignorant people. Jesus established fellowship with
people who were outside the camp and therefore he was accused of being a
glutton, a drunkard and a friend of those outside the Law (Mat. 11: 19). [Leonardo Boff, Jesus Christ Liberator: A Critical Christology for Our Time
(London: SPCK, 1987), 64.]
[46] Robert S. Samuel, Jesus Christ the Greatest Liberator (New Delhi: ISPCK, 1996), 24.
[47]Paul envisions a community that is
characterized by mutual sharing and solidarity, which is of course based on the
command to love sincerely. It is here that we find specific key words that
refer to suffering – words that world invoke emotions and/or memories of the
socioeconomic hardships and injustices they suffer from at present and in the
recent past.[47]
Yet they know that they are to love their enemies because God has already shown
them mercy (12:1), and that they can find comfort and refuge in a community
that practices love and mutuality. [Siu Fung Wu, "Practise Love and
Follow Christ: The Profound Relevance of Romans to Holistic Mission," Transformation: An International Journal of
Holistic Mission Studies 29, no. 1 (January 2012): 64.]
[48] Ibid., 25-26.
[49] Especially in a huge
country such as India, which now has a population of more limn 100 cores? Out
of this total, those in the 15 to 30 age-group constitute 40 jar cents, are
available for handling various tasks of development—local, regional and
national. ["Economic Growth with Social Justice", (accessed).]
[50] The Indian Economy is the world’s
tenth largest economy by the nominal Gross Domestic Product (GDP) and the
fourth largest economy by Purchasing Power Parity. [Felix Raj S.J., "Indian Economy at
the Crossroads," Vidya Jouthi
Journal of Theological 76, no. 2 (Feb. 2012): 81.]
[51] "Economic Growth with Social
Justice", (accessed).
[52] K. G Samuel, Major Religions and Evangelism (Thiruvalla: Rhema Publications),
18-19.
No comments:
Post a Comment