Development Revisited: A Sociological and Managerial Analysis Part 3

Thus far, we have been discussing what true economic development means. In doing so, one approach we have been using is to sociologically analyse economic development as advanced by the West and pursued by the rest of the world. We do so by examining the five main institutions of society (political, religious, economic, marital and educational) and their respective contributions to development.

In the first two parts, we discussed the political and religious systems. Both have been found to be miserably wanting. Will the economic system live up to the task? Well, let’s see.

To begin with, we want to find out what ‘Economics’ means. Then we will figure out what the economy contributes to development.

Definition of Economics

 A very popular definition of Economics by Lionel Robins is this: “Economics is the science which studies human behavior as a relationship between given ends and scarce means which have alternative uses.”

The ends refer to what one wants to achieve. The means is how to achieve those ends; the factors required for production. And by this definition, the means are scarce. And this is what brings about the problem of economics: What goods and services to produce, how can they be produced and for whom should they be produced.

Thus at the heart of economics lies a fundamental challenge: the scarcity of resources. This scarcity means that the finite resources available are insufficient to meet all human wants and needs. While wants represent desires that can be deferred or forgone, needs are essential requirements for survival and well-being.

This scarcity creates a pressing dilemma: how to allocate limited resources to satisfy unlimited desires. Economics seeks to address this problem by exploring various methods and possibilities for allocating resources efficiently. By examining the complex interplay between resources, production, and human desires, economics aims to provide solutions to the economic problem, ensuring that resources are utilized in the most effective way possible to meet the needs and wants of individuals and societies.

Economic Problem?

Is there really a problem of scarcity of resources? That is highly debatable. Some would refer to the resources of the earth such as oil, mineral resources and even soil fertility. Others would also cite land, labour and capital as scarce resources

However, let me once again quote the wisdom that set the tone for this series: “This is all that I have learned: God made us plain and simple, but we have made ourselves very complicated.”—Ecclesiastes 7:29 (Good News Bible)

Greed is the number one problem of true economics. An economy that is able to regulate greed in their system will have already resolved about 80% of their economic challenges. The aggregate success in this regard at the world level would mean life would be better for the masses.

The truth is that there’s nothing like true scarcity! Do you call it scarcity if the Organisation for Petroleum Exporting Countries (OPEC) greedily decides to cut back production so as to increase the price of fuel and thereby increase their income? Or when a ‘developed’ country decides to pay farmers what they would earn if they produced so they don’t have to farm in a specific year to keep food prices high?

Is it not greed and wickedness that bring about the so-called problem of economics? If every individual would just consume what he actually needed and make the rest available to the rest of mankind would we have the word ‘scarcity’ in our vocabulary? Or if all of us were truly industrious and did away with sloth would there be food shortages? And if we had not made our lives complex or complicated would we be lacking?

The rain falls when it’s due. The sun is faithful to rise up and give light and heat necessary for both plant and human/ animal life. The waters are stocked with adequate fish. Nature thus makes everything sufficiently available. Where then is the scarcity, than that we are greedy and wicked?

We are living in a world where almost everyone wants to have everything to ourselves—from individuals to nations. As a result, we greedily scramble for all the wealth that we can obtain. Our wants have thus become numerous and industry seeks to satisfy them for the gain of business and the economy. Yet as you well know, greed is insatiable. Thus when economics says human wants can never be satisfied it is actually admitting to the quality of greed! Should economics, then, concern itself with how ‘scarce’ resources can be allocated to produce those goods and services or rather be tampering with the greedy nature of people that leads to the excessive exploitation of those resources? Should that be left in the hands of the ‘invisible’ hand of the interactions between the forces of demand and supply?

In a system where in the name of laissez-faire economics that engenders unbridled competition all the wealth finds itself in the hands of just a few and the knowledgeable seek to conceal what they know for the sake of financial gain should we be surprised if there’s so much poverty, sicknesses and death that could otherwise be prevented? Once again is there really an economic problem as defined traditionally? Let’s now take a look at the real problem of economics.

The True Problem of Economics

Is it possible to develop in anarchy? What about deceit? Is condescension beneficial for development? We can answer these fundamental questions of development only if we appreciate the root cause of the woes of humankind.

As I mentioned earlier, greed is the number one problem of true economics. An economy that is able to regulate greed in their system will have already resolved about 80% of their economic challenges. The aggregate success in this regard at the world level would mean life would be better for the masses.

The spirit of competition has also done a great deal of disservice to the world’s economy. Competition is held as one of the basics of economics. However, wisdom would tell us that collaboration is more productive. Competition has deepened the greed to acquire more and produce more. And that has further spurred on the excessive exploitation of earth’s resources. No wonder the worlds ‘developed’ countries are also the worst culprits of environmental degradation, thus threatening the very existence of humanity.

In a system where some businesses and individuals become insatiable with wealth to the detriment of the environment, and some, if not most, go as far as bribing public officials in order to get their way would you call it ‘development’? Usually when discussing issues like this many are quick to point to developing nations as those endemic with such problems. Yet, is it not true that even in so-called developed countries worse things happen both at the corporate and individual levels? True, they have systems and tools that enable them check and sometimes apprehend most of those involved in such crimes. Yet, even if they do, that does not root out greed, and the irreversible harm would’ve been visited on society.

A truly developed economy would be made up of developed/civilized people. These developed people would all be morally upright. These would learn to do the right things not because the law will catch up with them but because they have a conscience. That should be the fundamental problem for true economics to solve.

The Economy

As we have been discussing, the fundamentals of economics which establish the economy are themselves wanting. Economic development should therefore be looked at more holistically.

Materialism has become the main determinant of who a developed economy is. Thus indices such as the rate of inflation, GDP, reserves and the like have been used as the basis for measuring the success or otherwise of an economy. Yet there are many other factors that should be taken into account when gauging an economy’s development. An economy with a high rate of crime, violence, divorce, youth delinquency, drug abuse, depression, stress and so on cannot be said to be developed. All such factors determine the quality of life of the citizenry.  A truly developed country should be able to eliminate all this.

The spirit of competition has also done a great deal of disservice to the world’s economy. Competition is held as one of the basics of economics. However, wisdom would tell us that collaboration is more productive.

Competition has deepened the greed to acquire more and produce more. And that has further spurred on the excessive exploitation of earth’s resources. No wonder the worlds ‘developed’ countries are also the worst culprits of environmental degradation, thus threatening the very existence of humanity.

Certainly, then, what economics is and how economies should operate need to be redefined. A paradigm shift from what Western hegemony has advanced over the years is urgently needed for true development. It would therefore be wise for ‘developed’ nations to eschew their condescension. And instead of finding ways to entrench their ‘superiority’ by dictating to and stifling ‘developing economies, they should rather be sitting down at the table as partners to chart a better system of economics.

What Western hegemony has done over the years is to suffocate the plurality of ideas among partners of development. The precarious nature of the world economy today is a testimony to that truth.  Is anyone listening? The next part in the series will be addressing the marital/family institution. Please make it a point to ‘catch’ it.

The author Jules Nartey-Tokoli is Founder and Group CEO at Groupe Soleil Vision, comprising Soleil Consults, LLC, NubianBiz dot Com and Soleil Publications. He has lived and worked in both Ghana and the United States, having extensive experience in Strategy, Management, Entrepreneurship, Premium Audit Advisory and Web consulting. He has also published several articles on Strategy and Management among others.