Economic growth is not “natural”: re-thinking current economic challenges
from Maria Alejandra Madi
Since the late 1980s, the World Bank has been defending a policy agenda that reinforces the free market model of endogenous economic growth where human capital plays an outstanding role since the acquisition of abilities would increase the productivity levels, and as a result, the income levels. In the model of endogenous growth, the evolution of the level of product per worker depends on the increase of productivity. Regarding the human capital model, the long run growth in each country is analysed considering the particular features of infrastructure and human capital. The divergences verified in the levels of product per worker among different countries can be attributed to the abilities accumulated by labour and to the infrastructure of the economies. The emergence and diffusion of the model of endogenous growth reflected the intellectual victory of the ideas about the supremacy of the competitive economic order and the rejection of interventionism to promote economic growth and social justice. Considering the relevant economic outcomes of this intellectual victory, the main question that arises in the context of economics education is: What is at stake in the economic discourse that privileges the economic competitive order as the pillar of economic growth?
The competitive order, as a necessary one, is the pillar of Hayek’s theoretical construction. Hayek’s economic discourse turns out to “naturalize” the competitive market as a superior arrangement. However, the “naturalization” of the competitive market – by considering it a “natural” arrangement – is overwhelmed by political interests that play a crucial role in the economic and political decision procedures, and in the institutional management of such issues.
Taking into account a real-world approach to economic growth, it is relevant to highlight the ideas of Keynes, Minsky, Kalecki, Rifkin in order to re-think current economic growth challenges
1. Uncertainty read more