Understanding Economics - 2

Chilean Economist Manfred Max-Neef: US Is Becoming an "Underdeveloping Nation"


Never in human history has there been such an accumulation of knowledge like in the last 100 years. What was that knowledge for? What did we do with it? And the point is that knowledge alone is not enough, that we understand very little. When you’re separated, you can accumulate knowledge. And that is—that’s been the function of science. Now, science is divided into parts, but understanding is holistic.

And that happens with poverty. One understood poverty only by experience. And then you begin to learn that in that environment there are different values, different principles from—compared to those from where one is coming. Economists look at the poverty from the outside, instead of living it from the inside.

And you learn extraordinary things. The first thing you learn, that people who want to work in order to overcome poverty and don’t know, is that in poverty there is an enormous creativity. You cannot be an idiot if you want to survive.

The whole language as an economist is not coherent with those situations and conditions. The principles, you know, of an economics which should be are based in one fundamental value and principle five postulates.

The fundamental AXIOM to sustain a new economy should be that no economic interest, under no circumstance, can be above the reverence of life.

1- The economy is to serve the people and not the people to serve the economy.

2- Development is about people and not about objects.

3- Growth is not the same as development, and development does not necessarily require growth.

4- No economy is possible in the absence of ecosystem services.

5- The economy is a subsystem of a larger finite system, the biosphere, hence permanent growth is impossible.

The Threshold Hypothesis :

In every society there is a period in which economic growth, conventionally understood or no, brings about an improvement of the quality of life. But only up to a point, the threshold point, beyond which, if there is more growth, quality of life begins to decline.

Growth is a quantitative accumulation. Development is the liberation of creative possibilities. Every living system in nature grows up to a certain point and stops growing. But we continue developing ourselves. So development has no limits. Growth has limits. And that is a very big thing, you know, that economists and politicians don’t understand. They are obsessed with the fetish of economic growth.

Economist Ha-Joon Chang on the G20 Summit, Currency Wars and Why the Free Market is a Myth

The Max-Neef Model of Human-Scale Development

Manfred Max-Neef is a Chilean economist who has worked for many years with the problem of development in the Third World, articulating the inappropriateness of conventional models of development, that have lead to increasing poverty, massive debt and ecological disaster for many Third World communities. He works for the Centre for Development Alternatives in Chile, an organisation dedicated to the reorientation of development which stimulates local needs. It researches new tools, strategies and evaluative techniques to support such development, and Max-Neef's publication Human Scale Development: an Option for the Future (1987) outlines the results of the Centre’s researches and experiences

Max-Neef and his colleagues have developed a taxonomy of human needs and a process by which communities can identify their "wealths" and "poverties" according to how these needs are satisfied.

Human Scale Development is defined as "focused and based on the satisfaction of fundamental human needs, on the generation of growing levels of self-reliance, and on the construction of organic articulations of people with nature and technology, of global processes with local activity, of the personal with the social, of planning with autonomy, and of civil society with the state." (Max-Neef et al, 1987:12)

The main contribution that Max-Neef makes to the understanding of needs is the distinction made between needs and satisfiers. Human needs are seen as few, finite and classifiable (as distinct from the conventional notion that "wants" are infinite and insatiable). Not only this, they are constant through all human cultures and across historical time periods. What changes over time and between cultures is the way these needs are satisfied. It is important that human needs are understood as a system - i.e. they are interrelated and interactive. There is no hierarchy of needs (apart from the basic need for subsistence or survival) as postulated by Western psychologists such as Maslow, rather, simultaneity, complementarity and trade-offs are features of the process of needs satisfaction.

Max-Neef classifies the fundamental human needs as: subsistence, protection, affection, understanding, participation, recreation(in the sense of leisure, time to reflect, or idleness), creation, identity and freedom. Needs are also defined according to the existential categories of being, having, doing and interacting, and from these dimensions, a 36 cell matrix is developed which can be filled with examples of satisfiers for those needs.

Satisfiers also have different characteristics: they can be violators or destroyers, pseudosatisfiers, inhibiting satisfiers, singular satisfiers, or synergic satisfiers. Max-Neef shows that certain satisfiers, promoted as satisfying a particular need, in fact inhibit or destroy the possibility of satisfying other needs: eg, the arms race, while ostensibly satisfying the need for protection, in fact then destroys subsistence, participation, affection and freedom; formal democracy, which is supposed to meet the need for participation often disempowers and alienates; commercial television, while used to satisfy the need for recreation, interferes with understanding, creativity and identity - the examples are everywhere.

Synergic satisfiers, on the other hand, not only satisfy one particular need, but also lead to satisfaction in other areas: some examples are breast-feeding; self-managed production; popular education; democratic community organisations; preventative medicine; meditation; educational games.

This model forms the basis of an explanation of many of the problems arising from a dependence on mechanistic economics, and contributes to understandings that are necessary for a paradigrn shift that incorporates systemic principles. Max-Neef and his colleagues have found that this methodology "allows for the achievement of in-depth insight into the key problems that impede the actualisation of fundamental human needs in the society, community or institution being studied" (Max-Neef et al, 1987:40)

This model provides a useful approach that meets the requirements of small group, community-based processes that have the effect of allowing deep reflection about one's individual and community situation, leading to critical awareness and, possibly, action al the local economic level.

The Wonder Years - 1

While growing up, I was scared to do anything wrong in the school or colony. Assuming and thinking hundred times that action might hurt reputation of mine parents. I was worried about everything. I am still a jerk in the social life but the environment of the school was more suffocating for me. I just didn't go up against all odds, and everything was OK for me.

I was always a model of obedience to the teachers and parents. Progressive parents surely helped me to have broaden mindset over many many things. It was an advantage over those forced to struggle from the outset with prejudices and rigid religious strictures. As the people say - हमारे यहां अपनी दिलचस्पियों के साथ वयस्‍क होने की इजाजत नहीं है। हम दूसरों की उम्‍मीदों के हमदम होते हैं और हमारी ख्‍वाहिशों का कोई मददगार नहीं होता।

I was a real nerd till the age of 19. I rebelled in the hostel life and even shed studies for the sake of starting new chapter in the life. I established a complete new 'me' in those four years. College life helped me to throw that baggage of fear and expectations. I was little frightened of the college administration in those days. The fear of submission and disciplinary action has gone now. Perhaps, because I am financially independent currently. Today, I am not worried about the colleagues and the manager.

Heart is strange thing. Once it falls for someone, it falls like apple under gravity. It does not think, what people will think or say ? And it just cares whether the beloved has heard him or not. That is Love. Once a person taste the freedom, one falls same kind of love with the liberty. And then one say the right thing at the right time in the right place.

Once a person become independent economically and socially, the society wants him/her to be married and settled. Its quite insane when society pushes girls/boys in the marriage before their thinking buds can open. A society that gives time to youth on its own expense to youth to seek their own truth prospers with the knowledge and peace.

People talk about love only and they seemed never to be touched by love. Its scary to consider gifts and lies as a sign of love. Love is a bitter experience for me !

When one observes and attempts to understand with a distancing gaze the circumstances of one's life in a constantly changing world, it gifts one a far bigger overview of the life. That is a first step towards meditation.

Banaras: A Bitter Memoir

I was reading a Jug Suraiya's column : Atheism is the best worship recently. I sunk deeply in the memories of city that I detest heavily. That city is Varanasi, notorious for touts. I will quote a paragraph here for the context :

A French sociologist has likened personal prayer and the giving of votive offerings to bribery. He has noted that in countries where the tradition of personalised God-worship is most entrenched –as in India, and in Roman Catholic Italy – the incidence of bribery in everyday life is also proportionately high. If God himself is a Babu who can be bribed to do your bidding with a prayer and a few diyas or candles, where’s the harm in slipping some currency notes to a bureaucrat or politician or policeman to do what you want done? Doesn’t God himself teach us to bribe? In which case, how can bribery and corruption be bad things, if they’re God-given?

Varanasi is the city of the old people and orthodox practices. There are lot of peoples with power and money without any sense of future. They live with same aura of timelessness that has surrounded this city from long times. The traditions and orthodox habits are only adapting comforts and avoid any drastic social changes in the veil of cultural preservation.

The scoundrel priests who extort money from the pilgrims & tourists with a blessing while reading few Sanskrit hymn and dab of powder on the forehead needs more than a few coins in return! These will be starters on the menu while main course of fraudulent nature appears gradually. One has to give up the baggage of tourist and interact with the people as of their own neighborhood to understand the minute details of the ruthless face of the town. This city always looks backwards for hope and stories. People here will always go into memories when they were somebody, who were loved and honored. Only saving grace in the city is BHU campus full of natural beauty and young students.

It is too overwhelming to see the sunsets and sunrise on the Ghats. What I found most amazing is our quality to ignore the desperate beggars, widespread poverty and flies swirling around atop a garbage heap on the edge of a river. The ancient traditions of this city fly in the face of modern rules of sanitation and public health. The filth of the daily life practices and prevailing hypocrisy in rituals in this holy city of Hindus reflect real condition of Hinduism. A religion filled with great philosophies and discriminative social culture at the same time.

It’s not the Ghats, the water or the spirit that is most breathtaking, but the corruption and deception. My stay at Varanasi is not the story of vanished moments. It is a mad tale of people asking for 'Moksha' and bribes in the same breathe. Amid chaotic and overwhelming city environment, the college life was full of relief.

In this tourist city, foreigners arrive with a certain image of India in mind, then only to have it shattered by teenage youths at the McDonald’s counter. Cultural shock for them ! A tip to pilgrims is popular as proverb in local culture.

Hindi Proverb: रांड़, सांड़, सीढ़ी संन्यासी। इनसे बचै तो सेवे काशी।।
English translation: Be on your guard against prostitute, bulls, stairs(of temples, bathing places etc., which may be very steep and dangerous), ascetic person but often a mendicant and then you may worship at Kashi (Varanasi).

I loved my college with the appreciation what life has to offer in various ways. In India when people want to die, they go to Varanasi to live there and to die there. No old man can believe that the days are good now – they were always in the past, the golden past, the good old days when things were like this and that. I also remember college days when everything was good. Now, I have become an alumni, the whole college world seems to be old and golden. But the world remains the same, only we go on changing. That I learned from that old and damned city.

Things to do in Varanasi:

1. The Sunrise along the 84 riverside ghats
2. Take a hand pulled boat ride down the Ganga River
3. The evening Ganga Aarti ceremony at Dasashwamedh ghat
4. The Burning Ghats at Harish Chandra and Manikarnika ghats
5. Ram Nagar Fort Museum across the river Ganga
6. Sarnath Museum, Ashoka pillar & Buddhist Sites
7. Chill out with students near Vishawanath Temple in the Banaras Hindu University campus.

I have seen many picasa photo albums and photo blogs of Varanasi. Best of all is : Visions Of Varanasi.

No tour of Varanasi is complete without Benarasi Paan. In the words of a foreign tourist : Be prepared to face the devastating power of Banaras Paan, a local betal nut product wrapped in a edible leaf and filled with molasses, rosewater, tutti fruiti, licorice, cloves and poisionous lime paste. Enjoy!

I protest !

Why there is a Julian Assange at all ? Reason: watchdog journalism is dead. The media is bought and paid for the PR work. We have to be careful to distinguish between the man and the institution since confusing the two can lead to the unfortunate mistake of shooting the messenger for delivering an unpalatable message. Its the individuals who had changed the world by creatively destroying the old institutions and building new ones.

We need more people speaking out. This country is not overrun with rebels and free thinkers. It's overrun with sheep and conformists. This country suffers from an excess of civil obedience. As Oscar Wilde said: “Disobedience, in the eyes of anyone who has read history, is man's original virtue. It is through disobedience that progress has been made, through disobedience and through rebellion.”

The right to protest clears the path to progress and inclusion. There is a short term sacrifice of protest. Every person is the beneficiary of a long line of protesters stretching back through the centuries who has stand up for the unprivileged and oppressed. Every worker gets minimum wages, every woman reading this can vote and every pensioner gets enough to survive because protesters demanded it. What what life would be like if all those protesters through all those years had been frightened into inactivity?  We were left at the whim of an elite, whose priority is tax cuts for themselves, paid for with spending cuts for the poor.

When two entities exchange value for mutual benefit, it is symbiosis. When two entities exchange value with one gaining more than the other, it is exploitation. When two entities exchange value at the cost of the third, it is…yes, drum-roll the word we Indians love to hate, talk about and practice the most, Corruption. The measure of corruption is not just the exchange of money. It is the distance and dissimulation rulers exhibit in relation to their own governments. To be always honest and aware about ground realities is enough in the fight against corruption.

India is a nation of sheep walking in herds and try to stick as closely as possible with the caste and enclosed community with not willing or able to break rank or file for anything. Opportunists align themselves with changing beliefs to temporarily form identity-based groups in order to achieve political or economic objectives subsuming the manifest differences between their identities. This country needs large numbers of anarchists and entrepreneurs for the progress and mobility across various groups.

Examples of this unbreakable code of silence are prevalent everywhere around us. Our moral compass tends to be so tilted in the favor of strongly armed with money power than the needy. Then, we justify lack of emotions and sensibility to each other with by the name of Immunity or barbaric I ask? Ours society punishes the victims and ensure that the torturers or criminals roam free without any sense of guilt.

Our various fortune tellers think one day some of us will rise and bring about some sort of revolution led by a savior to end all our evils. Well newsflash! Saviors come from people who are determined to save themselves. They don't arise from those who keep their heads down in the rat race making sure not to be noticed, because  if someone stops them and asks, they will have to say something which will challenge the system, and then their lives will stop as they will become aware of their own soullessness because they are the system.

It's the nature of a human that when you get neglected somewhere you want to go back and prove a point. I don't give respect to do-gooders as they are idiots who actually believe that everyone is trying to do their best and don't have an intention of harm. Squeezed between well-intentioned stupid people and the essentially criminal, I am pissed. I have a foolish head that does not abide by the moral values of everyone and absurd traditions of honor. I am a emotional and over aggressive as well as because I can't cover up the truth. The power of truth and transparency will surely unveil the hypocrisy around and in us.

 It is to hard to pigeonhole the man in any identity or role as Jonathan Swift, author of the English classic Gulliver’s Travels (1726), had pithily observed that “when a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.”