By Lea Sixtl
The academic discipline is dominated by mainstream economics. Orthodox economics. Is there space for criticism? As it is so strongly encouraged within the academic environment: “Think critically”, they say, but all that is taught is one school of thought. A thought the majority of the crowd accepts, not daring to step outside the box and start criticising the white (wild) west.
What defines a school of thought is quite simple, it’s a group of people like you and me, believing in the same way economics works. Mainstream is generally associated with neoclassical economics and Keynes, so pretty much everything you hear in your macro lectures. Heterodox economics (don’t be scared, I’ll define it in a second), on the other side, refers to all other approaches or schools of thought. So simply put: just a fancy word to refer to THE REST.
The rest has been muted within modern-day teaching, ignoring contributions from outside the European and western world. But the question I ask today is:
What about Islamic Economics? A way of economic thinking precisely based on religious scriptures, prohibiting interest rates on loans and redefining taxes, as a whole. This school of thought completely transforms monetary policy and the way economics works in an Islamic environment (Presley and Sessions, 1994).
What about the Sri Lankan economist Neville Karunatilake (1976), who writes in his book “The Confused Society”, about the Buddhist economic system? Taking a philosophical approach, by having its foundation in the development of a co-operative and harmonious effort in group living. Selfishness and materialistic pursuits have to be eliminated.
What about Austrian Economics? Heterodox views mostly critique capitalism, except the Austrian school of thought. This school embraces capitalism, basing its theory on individualism. (Not so far off the modern-day trend of self-actualization I’d say) It argues, that social phenomena result from the motivations and actions of individuals.
But let’s assume (a rare phrase an economist would use lol) the heterodox view just doesn’t hold with the facts and mainstream economics is the truth we should be embracing. Why has no one heard about all the outstanding diverse scholars, embracing the Orthodox approach?
Why haven’t you heard of the Latin American economist Hernando de Soto Polar and his research about the informal economy or his recent research about property rights, considering new global threats such as property right distortion?
Why haven’t you heard of the Zambian-born Economist Dambisa Moyo and her critical contributions to development economics, as well as current affairs within finance and politics?
Why haven’t you heard of the north African Economist Ibn Khaldun and his macroeconomic contribution with his supply side policy research and microeconomic work within supply and demand theory?
Shouldn’t we be able to adopt or at least be aware of such thoughts, thinkers and thinking? A successful economist isn’t just a sheriff in the wild west. He or she is also the explorer. A Francis Drake, minus the pirating and witchcraft, on an epic voyage of heterodox adventure. I’ve been watching too much BBC4 mind you!
References
Karunatilake, This Confused Society (1976)
Presley, J. and Sessions, J. (1994). Islamic Economics: The Emergence of a New Paradigm. The Economic Journal, 104(424), p.584.