Barefoot Economics, Poverty and Why The U.S. is Becoming an "Underdeveloping Nation"
Manfred Max-Neef, recipient of the Right Livelihood Award in 1983, speaks of poverty, underdeveloping nations and his âbarefoot economicsâ theory.
"AMY GOODMAN: So, to avoid another catastrophe, collision, if you were in charge, what would you say has to happen?
"MANFRED MAX-NEEF: First of all, we need cultured economists again, who know the history, where they come from, how the ideas originated, who did what, and so on and so on; second, an economics now that understands itself very clearly as a subsystem of a larger system that is finite, the biosphere, hence economic growth as an impossibility; and third, a system that understands that it cannot function without the seriousness of ecosystems. And economists know nothing about ecosystems. They donât know nothing about thermodynamics, you know, nothing about biodiversity or anything. I mean, they are totally ignorant in that respect. And I donât see what harm it would do, you know, to an economist to know that if the beasts would disappear, he would disappear as well, because there wouldnât be food anymore. But he doesnât know that, you know, that we depend absolutely from nature. But for these economists we have, nature is a subsystem of the economy. I mean, itâs absolutely crazy.
And then, in addition, you know, bring consumption closer to production. I live in the south of Chile, in the deep south. And that area is a fantastic area, you know, in milk products and what have you. Top. Technologically, like the maximum, you know? I was, a few months ago, in a hotel, and there in the south, for breakfast, and there are these little butter things, you know? I get one, and itâs butter from New Zealand. I mean, if that isnât crazy, you know? And why? Because economists donât know how to calculate really costs, you know? To bring butter from 20,000 kilometers to a place where you make the best butter, under the argument that it was cheaper, is a colossal stupidity, because they donât take into consideration what is the impact of 20,000 kilometers of transport? What is the impact on the environment of that transportation, you know, and all those things? And in addition, I mean, itâs cheaper because itâs subsidized. So itâs clearly a case in which the prices never tell the truth. Itâs all tricks, you know? And those tricks do colossal harms. And if you bring consumption closer to production, you will eat better, you will have better food, you know, and everything. You will know where it comes from. You may even know the person who produces it. You humanize this thing, you know? But the way the economists practice today is totally dehumanized.â
When asked how young economist should be taught today in order to become âcultured,â he proposes 5 economic principles and one fundamental value principle:
"One, the economy is to serve the people and not the people to serve the economy. Two, development is about people and not about objects. Three, growth is not the same as development, and development does not necessarily require growth. Four, no economy is possible in the absence of ecosystem services. Five, the economy is a subsystem of a larger finite system, the biosphere, hence permanent growth is impossible. And the fundamental value to sustain a new economy should be that no economic interest, under no circumstance, can be above the reverence of life."
Watch the interview or read the full transcript on DemocracyNow
