FIFTEENTH ESSAY 12-14-00
Moral Economics - Essays On The Relation of Economic Theory to the Moral
Perspective in POVERTY AND DEVELOPMENT: AN INTER-FAITH PERSPECTIVE.
[www.wfdd.org.uk/]
This is the fifteenth of an occasional series of short essays about how
economic theory interacts with a moral perspective. Readers are invited to
discuss and to re-post widely, but please quote the source.
SOME STANDARD MACRO-ECONOMIC P0LICIES HARM POOR PEOPLE
"...any process of development which creates or perpetuates poverty is
illegitimate...Again and again the programmes of faith based organizations
have been rendered nonviable by structural adjustment programmes and
international financial and market mechanisms."[POVERTY AND DEVELOPMENT: AN
INTER-FAITH PERSPECTIVE, para 5.4]
PRESENT DEBATE OVER IMF POLICIES
Today there is widespread debate over the macroeconomic policies promulgated
by the IMF in its structural adjustment programs. These policies normally
involve complete capital liberalization, reduction of protectionist devices
for poor countries while leaving such devices in place for developed
countries, reduction or elimination of social programs and destruction of
natural resources as a means to earn export dollars.
The uniform result of applying these policies is an increase in poverty and
misery, even in those countries that show macroeconomic improvement.
MARKET FAILURES RECOGNIZED BY SOME ECONOMISTS, NOT BY ALL
At the same time, the economics profession recognizes the existence of
market failures and the necessity of creating governmental mechanisms to
ameliorate those failures.
Sadly however, some economics practitioners do not recognize the necessity
for such corrective mechanisms. This consistent failure by some practicing
economists to acknowledge and correct the evident harm caused by the
unbending application of failed policies is immoral.
Michael Pierce McKeever, Sr.
Economics Instructor, Vista Community College, Berkeley, CA
URL: www.mkeever.com
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