Showing papers in "International Journal of Social Economics in 1989"
TL;DR: In this article, the theory of the firm is employed to explain behaviour of the Church and it reduces transactions costs by enforcing a system of property rights, which is enhanced by the promise of heaven and threat of hell.
Abstract: The theory of the firm is employed to explain behaviour of the church. Churches produce a set of products including entertainment, a variety of socially valuable public goods, eternal life and alteration of otherwise fated events. Most importantly, it reduces transactions costs by enforcing a system of property rights. Enforcement is enhanced by the promise of heaven and threat of hell, two innovations uniquely available to the church. Some implications of the model using the standard Cross‐cultural Sample of the Human Relations Area Files are tested.
81 citations
TL;DR: The core of Islamic economics rests on theological foundations as mentioned in this paper, social welfare is valued above material gain and heavy emphasis is placed on a strong belief in and faithful obedience to God, and particular attention is paid to the injunction against interest payments and to the requirement that the faithful pay a capital levy or wealth tax.
Abstract: The Islamic economic system is a theoretical construct of an economy whose members follow the Islamic faith. The core of Islamic economics rests on theological foundations – social welfare is valued above material gain and heavy emphasis is placed on a strong belief in and faithful obedience to God. The characteristics of, and principles which underlie, Islamic economics are surveyed. Particular attention is paid to the injunction against interest payments and to the requirement that the faithful pay a capital levy or wealth tax.
62 citations
TL;DR: In Singapore, the political leaders have now cautioned Singaporeans against assimilating alien values and becoming a pseudo-western society as discussed by the authors, and they have called for a set of national principles based on Asian values to guide Singaporeans into the next century.
Abstract: The outstanding economic growth of several East Asian countries has attracted world attention. Many observers have attributed the success of these Confucian countries to their common cultural values, such as respect for authority, loyalty to good leaders, preference for order, hard work, thrift and emphasis on education. The above factors seem to have worked in Singapore, although some researchers have observed that economic success and rapid changes have eroded these traditional values. In Singapore, the political leaders have now cautioned Singaporeans against assimilating alien values and becoming a pseudo‐Western society. They have called for a set of national principles based on Asian values to guide Singaporeans into the next century.
55 citations
TL;DR: Falk as discussed by the authors argued that the classical approach to morality (Aristotle) and the Enlightened approach (Kant) need not compose antinomy, and that the Aristotelian emphases on the development of virtuous character and the nature of practical wisdom coalesce with the Kantian emphasis on autonomy in the person of the moral leader.
Abstract: Book VI of Aristotle′s Nicomachean Ethics is commented on, aimed at showing its relevance to some themes in contemporary moral philosophy. It is argued that the classical approach to morality (Aristotle) and the Enlightened approach (Kant) need not compose antinomy. Instead, the Aristotelian emphases on the development of virtuous character and the nature of practical wisdom coalesce with the Kantian emphasis on autonomy – what Falk calls “responsible self‐direction” – in the person of the moral leader. In particular, great moralists have recognised that moral wisdom is not mainly a matter of strict obedience to rules. While rules have their place, the subject matter of ethics cannot be determined by a quasi‐mathematical formalism. Over‐emphasis on the formalism of the categorical imperative obscures Kant′s more fundamental emphasis on autonomy. The autonomous person, able to exercise moral leadership, cultivates the Aristotelian virtue of phronēsis.
27 citations
TL;DR: In this article, a simultaneous equilibrium versus disequilibrium approach, initially applied in economics has now been extended to include natural sciences, leading to the organisation of an Orientation Table, that is, a methodological map of all possible combinations (systems).
Abstract: There is a double crisis in modern science and in particular in physics and mechanics. Among others Einstein and Stephane Lupasco, in the 1930s, warned about this crisis. The Quantum Theory cannot be reconciled with the Relativity Theory. Specifically there is a gap (cleavage) between micro – and macro‐physics and mechanics. Parallel or beneath there is also a second crisis derived from a discontinuity (again a cleavage) between classical and modern science, that is between two previous revolutions. A new research programme of a simultaneous equilibrium versus disequilibrium approach, initially applied in economics has now been extended to include natural sciences. It is the question of a new, more comprehensive methodology which is actually a sui generis synthesis between classical and modern heritage. The rigorous application of the new research programme leads to the organisation of an Orientation Table, that is, a methodological map of all possible combinations (systems). The Table shows, without any ...
22 citations
TL;DR: In this paper, a new concept in population economics is introduced, i.e. population economic density, which is different from the concept of population density, and many kinds of migration are analyzed, and it is believed that the main efficient cause of migration is economy.
Abstract: The economic law of population distribution and migration has been studied chiefly based on the Chinese situation. The distribution and development of productive forces decide the distribution and migration of population, and in turn, the latter influences the former. The population distributions in three different stages of social development, namely agricultural, industrial and information society, are described. A new concept in population economics is introduced, i.e. population economic density, which is different from the concept of population density. The formula of population economic density is P(population)/R(resources). Many kinds of migration are analysed, and it is believed that the main efficient cause of migration is economy.
19 citations
TL;DR: In this article, the affinities of Smith's invisible hand notion and Hegel's cunning of reason are examined through a study of all the key locations in which the invisible hand and cunning of reasoning are introduced, and they reach similar conclusions regarding the play of self-interest and the emergence of the social good.
Abstract: The affinities of Smith′s invisible hand notion and Hegel′s cunning
of reason are examined through a study of all the key locations in which
the invisible hand and cunning of reason are introduced. Despite their
differences in orientation and philosophy, both writers reach similar
conclusions regarding the play of self‐interest and the emergence of the
social good. Specifically, each requires a deus ex machina
– Providence or Geist – to generate the necessary
telosthat supplements their respective logical arguments
concerning the concrete play of interest. At the same time, each view
provides little to explain how individualism creates the greater social
good, so that recourse in each argument to an extra‐social entity
obscures the actual functioning of the social order. The common
approaches of the two very different thinkers thus reflects on the
general requirements and dilemmas of arguments concerning the social
good and individual interest.
15 citations
TL;DR: A view of Islam as a comprehensive way of life for its adherents is presented in this paper, where the spiritual and ethical reconstruction of individuals, societies and the world order are given in a socio-economic framework.
Abstract: A view of Islam as a comprehensive way of life for its adherents is presented. The spiritual and ethical reconstruction of individuals, societies and the world order are given in a socio‐economic framework. The principles of Islam and brotherhood, with reference to the Quran, are explained in some detail.
14 citations
TL;DR: The work of E.F. Schumacher as mentioned in this paper is addressed in the broad context of economic philosophy, and his economics present a frontal attack on neo-classical economics.
Abstract: The work of E.F. Schumacher is addressed in the broad context of economic philosophy. His economics present a frontal attack on neo‐classical economics. He likewise rejects a Marxist analysis of society. And while he shares some of the concerns of the institutionalists, he nonetheless stands apart from them in his questioning of the moral and philosophical foundations of the discipline. Schumacher can be considered a member of a fourth school – philosopher/economists.
7 citations
TL;DR: The history and development of urban transportation sysems in Brazil are reviewed in some detail in this paper, where social implications of transport costs, wasted travel time, the development of slum areas in inner cities, are considered and viewed as a poor reflection on an industrial and urban economy such as Brazil.
Abstract: The history and development of urban transportation sysems in Brazil are reviewed in some detail. Early urban developments were served by rail and relied upon the rail transit systems but this has deteriorated since the 1930s as a result of high urban growth rate. Rail transport has chiefly been replaced by buses and micro‐buses, and latterly by cars but these have compounded rather than improved the situation. Industrialisation in the 1950s had a profound effect as existing networks were unable to cope with rapid urban development and growth. The social implications of transport costs, wasted travel time, the development of slum areas in inner cities, are considered and viewed as a poor reflection on an industrial and urban economy such as Brazil. The conclusion is drawn that the transportation system may ultimately jeopardise the continuity of Brazil′s industrialisation and modernisation.
7 citations
TL;DR: Wang et al. as mentioned in this paper argued that neither efficiency-oriented market wage system nor use of the equity-oriented planned wage system can solve the dual problem of economic growth and income distribution, and a synergy of the two systems will therefore be needed.
Abstract: Wage reform is an important aspect of Chinese economic reform. The success of wage reform is likely to depend upon the following understanding: Neither use of the efficiency‐oriented market wage system nor use of the equity‐oriented planned wage system can solve the dual problem of economic growth and income distribution. A synergy of the two systems will therefore be needed. Such a synergetic wage system, which simultaneously solves the dual problem of production and distribution, can expedite the rise of social productivity – the fundamental mission in the preliminary stage of Chinese socialism. In other words, wages should be differentiated, and the differences should be related to workers′ effort and society′s demand for them. These differences, however, need not be very large.
TL;DR: Schmoller rejected the study of economics in isolation, but preferred a holistic approach as discussed by the authors, eschewed laissez-faire and thought little of self-seeking entrepreneurs who made no contribution to the common good.
Abstract: The author′s purpose is to show by reference to Schmoller′s own writings that he can be classified as a social economist. Schmoller rejected the study of economics in isolation, but preferred a holistic approach. He eschewed laissez‐faire and thought little of self‐seeking entrepreneurs who made no contribution to the common good.
TL;DR: The authors discusses the origin and rationale behind the construction of moral codes, the moral codification of preferences and its associated problems, as well as the problems associated with moral codes in welfare economic theory.
Abstract: Economic theory rests on the principal axiom of egoism; that every action is driven by self interest, and is therefore seen as a moral‐free science. Morality, on the other hand, concerns subjective value judgement, usually in the interpersonal context of whether an action is right or wrong. Although the two are seemingly unrelated, welfare economic theory and its applications cannot proceed very far without the assistance of moral codes. This article discusses the origin and rationale behind the construction of moral codes, the moral codification of preferences and its associated problems.
TL;DR: The question of whether at present Smith is of any importance for economic analysis is dealt with in this paper, where the attempts of a number of authors to reach a new interpretation of Smith are examined.
Abstract: The question of whether at present Smith is of any importance for economic analysis is dealt with. The attempts of a number of authors to reach a new interpretation of Smith are examined. The emphasis is on the argument on which the decision to come to a reorientation on Smith would be based. Reasons are given for why the current Smith interpretation might be disqualified as an anachronism. Finally, on the basis of a number of specific passages from The Wealth of Nations, there is a particularisation in the questions one might justly ask regarding the current interpretation of Smith′s economic thought.
TL;DR: Schmoller claimed that the basic principle of social reform was a contemporary version of Aristotelian "justice" as mentioned in this paper, and defended the necessity for social reform against conservative attacks whilst at the same time denying the legitimacy of Socialist demands for income distribution.
Abstract: Schmoller claimed that the basic principle of social reform was a contemporary version of Aristotelian “justice” On the one hand Schmoller defends the necessity for social reform against conservative attacks whilst at the same time denying the legitimacy of Socialist demands for income distribution The Schmoller approach to justice is re‐examined not only as an important contribution to the history of economics, but of surprising contemporary relevancy
TL;DR: In this article, the authors underline the three non-ideological consequences of specialisation within the economics profession and conclude that unless generalisation supersedes fragmentation, no coherent picture of the economic...
Abstract: With the process of continuous specialisation within economics and with its incessant subdivision into different schools, the practitioners of the discipline are becoming more and more alienated from each other. The need and opportunity to communicate are disappearing. When a dialogue takes place, one side is often unable to hear the other. And even when the other side is heard, it is simply not understood. No attempt is made to explain the causes of such compartmentalisation among economists. Rather, the aim is to underline the three non‐ideological consequences of specialisation within the economics profession. The effects of a mutual misunderstanding are: (1) various names are used to define the same concept; (2) the same name is employed to describe different notions; and (3) the relative character of a given approach is not recognised. Several examples are utilised to underscore the major points. It is concluded that, unless generalisation supersedes fragmentation, no coherent picture of the economic...
TL;DR: This article examined whether there was any relationship at all between crime, unemployment and sales of alcohol and, if there was a relationship, whether the two domains shared two dimensions, as opposed to only one dimension, and what the pattern of relationships were relating variables in one domain with those in the other.
Abstract: The tremendous and highly complex industrial development which went on with ever‐accelerating rapidity during the latter half of the nineteenth century brought the USA face‐to‐face at the beginning of the twentieth century with the very serious social problem of crime. This article examines whether there was any relationship at all between crime, unemployment and sales of alcohol and, if there was a relationship, whether the two domains shared two, as opposed to only one dimension and what the pattern of relationships were relating variables in one domain with those in the other.
TL;DR: The authors compare Hayek's and Schmoller's concepts of "social policy" and suggest that the focus of the discussion should be mainly on Hayek and his critique of Schmollen's two important components of his somewhat “syndicalistic” system which determined his vague but still relevant concept of social policy.
Abstract: The quite difficult task of comparing Hayek's and Schmoller's concept of social policy can only be attempted by confining the discussion to the dominant and basic principles of their prevailing ideas. The reasons are manifold. Just one of them for instance is that Schmoller, as far as I can see, never gave us any workable definition of this ambiguous term, and for Hayek this term is a politically much abused and empty phrase. Another would be that Hayek referred to Schmoller only sporadically and treated the latter's voluminous oeuvre only very peripherally in his own relevant work. I, therefore, suggest the concentration mainly on Hayek's critique of Schmoller's two important components of his somewhat “syndicalistic” system which determined his vague, but still relevant concept of “social policy”.
TL;DR: In this paper, the authors identified nine causes for the occurrence of surplus agricultural labour with the modernisation of agriculture and several solutions to this problem are presented, including urbanization of the agricultural population in a way suited to China's characteristics.
Abstract: Nine causes for the occurrence of surplus agricultural labour with the modernisation of agriculture have been identified. Several solutions to this problem are presented. Urbanisation of the agricultural population in a way suited to China′s characteristics is necessary, important and possible.
TL;DR: In this paper, a cross-section of 1980 US data on the prison population and its rate of inflow is examined, and regression analysis is used to investigate the impact of prison overcrowding, race, crime, and unemployment on the above variables.
Abstract: A cross‐section of 1980 US data on the prison population and its rate of inflow is examined. Regression analysis is used to investigate the impact of prison overcrowding, race, crime and unemployment on the above variables. Racial composition and overcrowding are found to have significant positive impacts on the numbers in prison and the rate of inflow. Unemployment does not have a significant influence, nor does the crime rate influence inflow, but it does have a significant positive correlation with the level of the prison population.
TL;DR: The Talmudic writers who came closest to the thought world of the modern human capital theorists were the rabbis as discussed by the authors, who employed human capital concepts in the examination of issues relating to free persons as well as slaves.
Abstract: Of any group of ancient or medieval thinkers it is the Talmudic writers who came closest to the thought world of the modern human capital theorists. The only other group which might be considered in this regard is the one comprising the jurists of ancient Rome. However, the insights of the jurists were confined to the context of discussion of damages with respect to sales of slave capital. The rabbis, by contrast, ranged beyond the question of damages. Furthermore, they employed human capital concepts in the examination of issues relating to free persons as well as slaves. There were three main points of departure for Talmudic debate in the field of human capital analysis. One of these was the biblical account, in the book of Exodus, of the construction of the Tabernacle. Another was the problem of estimation of appropriate compensation in cases of physical and psychological injury. A third involved attempts at the valuation of human life, which were evoked by the section of the book of Leviticus which deals with the dedication of persons to the sanctuary.
TL;DR: In this paper, a brief look at some of the seminal examples of historical work in economics, particularly the German historical school, is taken at the scope and consequences of neglect of historical methods in contemporary economics, and an outline of Schmoller's work as an example of a historical social economist is discussed.
Abstract: It is proposed that social economics is in danger of losing its societal significance if economic analysis is reduced to one method only. Recently, prominent economists have emphasised the need to reintroduce the historical method into economic research work. A brief look is taken at some of the seminal examples of historical work in economics, particularly the German historical school. Other areas discussed include the scope and consequences of neglect of historical methods in contemporary economics; an outline of Schmoller′s work as an example of a historical social economist; and how Schmoller′s work compared with that of his contemporaries. The article concludes with a plea for a renewed emphasis on historical methods in economics.
TL;DR: Gorbachev's book Perestroika is used to explain why the author believes the new policy of restructuring of the Soviet economy cannot and will not work as mentioned in this paper, and it is concluded that the policy is cosmetic restructuring and Gorbachev's downfall, like Khruschev's, is assured.
Abstract: Gorbachev′s book Perestroika is used to explain why the author believes the new policy of restructuring of the Soviet economy cannot and will not work. The policies of Perestroika are introduced and evaluated and the existing socio‐economic system presented. At the end of this sceptical Western analysis, it is concluded that the policy is cosmetic restructuring and Gorbachev′s downfall, like Khruschev′s, is assured.
TL;DR: To what extent Mikhail Gorbachev's Glasnost and Perestroika anticipate the paradigm of a socialist market economy, is investigated in this article, where the authors investigate the extent to which they anticipate the socio-economic theories which abstract themselves from the observations and needs of daily life, especially to the interrelationship of personal initiative, morality, law, government and public policy.
Abstract: To what extent Mikhail Gorbachev′s Glasnost and Perestroika anticipate the paradigm of a socialist market economy, is investigated. Gorbachev, like China′s Deng Xiaoping, realises that socio‐economic theories which abstract themselves from the observations and needs of daily life have little relevance. That is, a meaningful paradigm has to pay attention to society′s values, especially to the interrelationship of personal initiative, morality, law, government and public policy. Hence, Gorbachev advocates the establishment of more favourable socio‐economic conditions to lay the foundation for a “functional socialist social market economy”, however defined, in the Soviet Union.
TL;DR: A planning commission was set up to determine priorities and co-ordinate Indian economic development as mentioned in this paper, and the principal objectives of planned development have been to build up within a democratic context: (1) a rapidly expanding and technologically progressive economy, and (2) a social order based on justice and offering equal opportunity to every person.
Abstract: India was a colony of Great Britain until 1947 when the subcontinent was partitioned into two politically separate and independent countries: India and Pakistan. The partition resulted in a major political and economic upheaval in the subcontinent. In 1950, a planning commission was set up to determine priorities and co‐ordinate Indian economic development. The system has been called a “mixed economy” as opposed to either a centrally planned economy or an essentially free marketdriven system. Over the years, the principal objectives of planned development have been to build up within a democratic context: (1) a rapidly expanding and technologically progressive economy, and (2) a social order based on justice and offering equal opportunity to every person. Several of the achievements and the problems faced in the course of the development effort are discussed.
TL;DR: In this article, a defence of an active role for government in the economy is developed, based on social and institutional economics, and the traditional explanations for American exceptionalism given by Sombart, Commons and Perlman are outlined.
Abstract: The American public exhibits an exceptionally strong bias against public sector activity in the economy. Why this is so is investigated by applying the traditional literature on “American exceptionalism” and the comparative method. A defence of an active role for government in the economy is developed, based on social and institutional economics. The traditional explanations for American exceptionalism given by Sombart, Commons and Perlman are outlined. A comparison of the Canadian and US politico‐economic cultures is employed as a means for evaluating the validity of the arguments in the traditional exceptionalist literature. Although those investigating American exceptionalism have often compared the US with Europe, it is argued that Canada makes a better subject for comparison with the US. This is because the two countries are very similar, yet exhibit different attitudes toward the public sector.
TL;DR: The historical background of the Chinese co-operative movement is presented, the structure and quality of different types of co-operatives examined, the performance of co−operatives and the benefits of being a cooperator evaluated and the characteristics and problems of this system considered.
Abstract: How the Chinese Nationalist Government tried to use co‐operatives as a socio‐economic instrument in mainland China (1928‐1949) but met with little success is discussed. The historical background of the Chinese co‐operative movement is presented, the structure and quality of different types of co‐operatives examined, the performance of co‐operatives and the benefits of being a co‐operator evaluated and the characteristics and problems of this system considered.
TL;DR: In this article, the authors look at Gustav Schmoller's economic political theories developed in the face of industrialisation in Germany and the foundation of the German Nation State, particularly seen from the point of view of commercial and trade policy.
Abstract: The starting point of the work in hand is the economic historian's interest in the question of the relation of theoretical economic‐political concepts to economic, social and political developments within society. In this regard it is interesting to look at Gustav Schmoller's economic‐political theories developed in the face of industrialisation in Germany and the foundation of the German Nation State, particularly seen from the point of view of commercial and trade policy. Schmoller's theory of economic policy is based on the actual economic, social and political developments of his time. These theories were of a programmatic nature and often resulted in concrete demands.
TL;DR: The main objective of Aganbegyan′s book is to enhance arguments made by Gorbachev in the latter′s Perestroika as discussed by the authors, which is the major objective of this article.
Abstract: The major objective of Aganbegyan′s book is to enhance arguments made by Gorbachev in the latter′s Perestroika. New Thinking for Our Country and the World. Like his leader, Aganbegyan asserts that the ultimate purpose of perestroika is people′s welfare and that the policy of the acceleration of the Soviet economic development is the principal means to achieve the goal. This article challenges Aganbegyan′s claim. It argues that: (1) given the inefficient and wasteful character of the Soviet system, the projected increase in the standard of living of the Soviet population could be accomplished now, and not in the future; (2) the acceleration of the economic growth and restructuring of Soviet society contradict one another and, thus, make the attainment of the proclaimed goal impossible even in the future, and (3) the forthcoming reform of retail prices more than anything else reveals the true, anti‐consumerist nature of the policies of the Soviet leadership.
TL;DR: The epistemological precondition for this is Schmoller's axiom on the formation of communities as mentioned in this paper, in which each member of the community is rewarded according to his or her contribution to the community.
Abstract: The author attempts to reconstruct the political way of thinking pervading Schmoller′s works. Schmoller′s pleading for a primarily aristocratic constitution results from a theory of justice in which each member of the community is rewarded according to his or her contribution to the community. The epistemological precondition for this is Schmoller′s axiom on the formation of communities.