Conventional Economics
is primarily pre-occupied with optimization of the use of limited resources. Optimisation
is actually the outcome of both maximization and minimization. For instance,
produce as much as possible with available resources is the motto of the
conventional economics. To achieve this, producers, on the one hand, maximizes
their revenue or profit for which they, on the other hand, minimizes cost of
production. However, today it appears that economics as a branch of knowledge
must revisit it’s this approach especially in the face of issues like
environmental implications of such optimizing approach. In other words, environmental implications of
the hither to followed economics with its obvious inclination to production
spree has already started ringing the alarm bell to the world. Simply put, this
beautiful planet said to be billions of years old is now being pushed to the
brinks of its own extinction due to the erroneous economic approach driven by
rapid industrialization since the beginning of industrial revolution about
three hundred years ago. International bodies like UNO have already warned the
world that if carbon emission goes on unabated, then by 2060 this planet will
have encounter debilitating catastrophe.
Given such a
background, the obvious question is what should be done? The simple answer is
to change the economic approach. In other words, from the traditional
optimization approach, economics must embark on reconciliatory approach.
Optimization approach is developed at a time when there were no factors or
forces which must be taken care of in this process of optimization. When the
motto was expand the production, it was not a matter of concern then how this
expansionist approach will affect, for instance, ecology simply because we were
just beginning to produce and therefore, its detrimental effect were not felt.
But today picture is entirely different. We have already enough evidences in
front of us indicating that matters are going to be worst. In other words, our expansionist economics
approach has given birth to forces which have already begun to work against the
same system responsible for its emergence. Therefore, today’s economics can no
longer afford to continue with production spree disregarding such noises. In other
words, economics has to assume a balancing approach in its endeavor, what so
ever be.
Consider ‘make in
India’ initiative. Certainly, if such an initiative is truly pursued and made a
true experience will be of great use for the people as it will ensure jobs to
them. But there is flip side to this. Where to find the resources such as
energy for such a massive expansion of production in India? There are two
obvious ways to find energy resources. One is to exploit available resources in
the country like coal and minerals. However, this solution is half-baked as it
will either displace people from areas where these resources are deposited or
the very mining of such resources is not sans with its environmental
implications like deforestation. Second, country can import fossil fuel like
oil to meet its energy requirements.
But, can we economically afford it and even if it is affordable, can we
afford to bear its environmental impact? Thus, authorities must think twice
when they come with such policies and initiatives which are essentially driven
by the traditional economic approach. That is, this ‘make in India’ approach,
for instance, fundamentally belongs to traditional economic approach as it envisages
massive production expansion in India disregarding its environmental or social
implications.
Having said all these
it is imperative to put in perspective what is this ‘reconciliatory economics’
all about? This is all about adopting a reconciliatory economic approach to
accommodate conflicting interests which involves primarily two things. First,
go back to agriculture by way of giving primary consideration to fostering
agriculture. Expansion of agriculture will ensure that people have food
security, jobs and after all thriving agriculture will foster environment. This
does not mean to side-line industrial sector or service sector. Instead, shape up and promote agro based
industries instead of focusing on such industries dictated by forces of greed
in the market. For, it is spreading havoc both for the health of the society
and environment. For example, instead of promoting products like junk food,
promote value added products produced from agriculture outputs which will guarantee
jobs at the same time products will be health friendly. For this state must play a key and proactive
role with a stated mission of promoting industries for the benefit of the
society like providing jobs instead of aligning with greedy market players.
Second important component of the so called ‘reconciliatory economics’ is to
encourage development of environment friendly technology. For this also
government must encourage rigorous innovative researches and overhaul the
current system of education as a whole and higher education in particular in
India. Thus, this new approach calls for a new attitude from all walks of life
such as education, government, industrialists etc. Or earth will be a
proverbial planet for those who will be in Mars by 2060.
