Exploring mainly Heterodox type Economics, Monetary Reform, Environmental Sustainability, and Climate Change. It is a resource of Internet articles, and also promotes awareness of a futuristic modern universal Paradigm known as TFE, or Transfinancial Economics which is probably the most advanced, and most "scientific" form of Economics in the world .
Showing posts with label small is beautiful. Show all posts
Showing posts with label small is beautiful. Show all posts
Small Is Beautiful: A Study of Economics As If People Mattered is a collection of essays by British economist E. F. Schumacher. The phrase "Small Is Beautiful" came from a phrase by his teacher Leopold Kohr.[1] It is often used to champion small, appropriate technologies that are believed to empower people more, in contrast with phrases such as "bigger is better".
First published in 1973, Small Is Beautiful brought Schumacher's critiques of Western economics to a wider audience during the 1973 energy crisis and emergence of globalization. The Times Literary Supplement ranked Small Is Beautiful among the 100 most influential books published since World War II.[2] A further edition with commentaries was published in 1999.[3]
The book is divided into four parts: "The Modern World", "Resources", "The Third World", and "Organization and Ownership".
In the first chapter, "The Problem of Production", Schumacher argues that the modern economy is unsustainable. Natural resources (like fossil fuels), are treated as expendable income, when in fact they should be treated as capital, since they are not renewable, and thus subject to eventual depletion. He further argues that nature's resistance to pollution is limited as well. He concludes that government effort must be concentrated on sustainable development, because relatively minor improvements, for example, technology transfer to Third World countries, will not solve the underlying problem of an unsustainable economy.
Schumacher's philosophy is one of "enoughness", appreciating both human needs, limitations and appropriate use of technology. It grew out of his study of village-based economics, which he later termed Buddhist economics, which is the subject of the book's fourth chapter.
He faults conventional economic thinking for failing to consider the most appropriate scale for an activity, blasts notions that "growth is good", and that "bigger is better", and questions the appropriateness of using mass production in developing countries, promoting instead "production by the masses". Schumacher was one of the first economists to question the appropriateness of using gross national product to measure human well-being, emphasizing that "the aim ought to be to obtain the maximum amount of well being with the minimum amount of consumption". In the epilogue he emphasizes the need for the "philosophy of materialism" to take second place to ideals such as justice, harmony, beauty, and health.
Ernst Friedrich "Fritz" Schumacher (16 August 1911 – 4 September 1977) was an internationally influential economic thinker, statistician and economist in Britain, serving as Chief Economic Advisor to the UK National Coal Board for two decades.[1] His ideas became popularised in much of the English-speaking world during the 1970s. He is best known for his critique of Western economies and his proposals for human-scale, decentralised and appropriate technologies.
According to The Times Literary Supplement in 1995, his 1973 book Small Is Beautiful: a study of economics as if people mattered was among the 100 most influential books published since World War II.[2] It was soon translated into many languages, bringing him international fame. Schumacher's basic development theories have been summed up in the catch-phrases Intermediate Size and Intermediate Technology. In 1977 he published A Guide for the Perplexed as a critique of materialist scientism and as an exploration of the nature and organisation of knowledge.
Together with long-time friends and associates like Professor Mansur Hoda, Schumacher founded the Intermediate Technology Development Group (now Practical Action) in 1966.
Schumacher moved back to England before World War II, as he had no intention of living under Nazism. For a period during the War, he was interned on an isolated English farm as an "enemy alien". In these years, Schumacher captured the attention of John Maynard Keynes with a paper entitled "Multilateral Clearing"[3] that he had written between sessions working in the fields of the internment camp. Keynes recognised the young German's understanding and abilities, and he was able to have Schumacher released from internment. Schumacher helped the British government mobilise economically and financially during World War II, and Keynes found a position for him at Oxford University.
According to Leopold Kohr's obituary for Schumacher, when "Multilateral Clearing" "was published in the spring of 1943 in Economica, it caused some embarrassment to Keynes who, instead of arranging for its separate publication, had incorporated the text almost verbatim in his famous "Plan for an International Clearing Union", which the British government issued as a White Paper a few weeks later."[4]
After the War, Schumacher worked as an economic advisor to, and later Chief Statistician for, the British Control Commission, which was charged with rebuilding the German economy.[1] From 1950 to 1970 he was Chief Economic Adviser to the National Coal Board,[1] one of the world's largest organisations, with 800,000 employees. In this position, he argued that coal, not petroleum, should be used to supply the energy needs of the world's population. He saw oil as a finite resource, fearing its depletion and eventually prohibitive price, and viewed with alarm the reality that "the richest and cheapest reserves are located in some of the world's most unstable countries"[5]
His position on the Coal Board was often mentioned later by those introducing Schumacher or his ideas. It is generally thought that his farsighted planning contributed to Britain's post-war economic recovery. Schumacher predicted the rise of OPEC and many of the problems of nuclear power.[citation needed]
In 1955 Schumacher travelled to Burma as an economic consultant. While there, he developed the set of principles he called "Buddhist economics", based on the belief that individuals need good work for proper human development. He also proclaimed that "production from local resources for local needs is the most rational way of economic life." He travelled throughout many Third World countries, encouraging local governments to create self-reliant economies. Schumacher's experience led him to become a pioneer of what is now called appropriate technology: user-friendly and ecologically suitable technology applicable to the scale of the community; a concept very close to Ivan Illich's conviviality. He founded the Intermediate Technology Development Group (now Practical Action) in 1966. His theories of development have been summed up for many in catch phrases such as "intermediate size", and "intermediate technology". He was a trustee of Scott Bader Commonwealth[6] and in 1970 the president of the Soil Association.
E F Schumacher was greatly influenced by Mahatma Gandhi and J. C. Kumarappa and Gandhi's concepts of "Economy of Permanence" and appropriate technology. While delivering the Gandhi Memorial Lecture at the Gandhian Institute of Studies at Varanasi (India) in 1973, Schumacher described Gandhi as the greatest 'People's Economist' whose economic thinking was compatible with spirituality as opposed to materialism.[7]
By the end of his life, it can be said that Schumacher's personal development had led him very far afield from the ideas of John Maynard Keynes. Keynes, second only to Adam Smith, is widely regarded as the most influential modern orthodox economist. Schumacher is one of the most widely recognised heterodox economists.[citation needed]
Schumacher wrote on economics for London's The Times and became one of the paper's chief editorial writers. At this post he was assigned the somewhat uncomfortable task of compiling information for the obituary of John Maynard Keynes many years before the event of his death. He also wrote for The Economist and Resurgence. He served as adviser to the India Planning Commission, as well as to the governments of Zambia and Burma – an experience that led to his much-read essay "Buddhist Economics".
The 1973 publication of Small is Beautiful: a study of economics as if people mattered, a collection of essays, brought his ideas to a wider audience. One of his main arguments in Small is Beautiful is that we cannot consider the problem of technological production solved if it requires that we recklessly erode our finite natural capital and deprive future generations of its benefits. Schumacher's work coincided with the growth of ecological concerns and with the birth of environmentalism, and he became a hero to many in the environmental movement and community movement.
In 1976, he received the prestigious award Prix Européen de l'Essai Charles Veillon for "Small is Beautiful"
His 1977 work A Guide for the Perplexed is both a critique of materialisticscientism and an exploration of the nature and organisation of knowledge.
As a young man, Schumacher was a dedicated atheist, but his later rejection of materialist, capitalist, agnostic modernity was paralleled by a growing fascination with religion.[8][9] He developed an interest in Buddhism, but beginning in the late 1950s, Catholicism heavily influenced his thinking. He noted the similarities between his own economic views and the teaching of papal encyclicals on socio-economic issues, from Leo XIII's "Rerum novarum" to Pope John XXIII's Mater et magistra, as well as with the distributism supported by the Catholic thinkers G. K. Chesterton, Hilaire Belloc and Vincent McNabb. Philosophically, he absorbed much of Thomism, which provided an objective system in contrast to what he saw as the self-centered subjectivism and relativism of modern philosophy and society.[10] He also was greatly interested in the tradition of Christian mysticism and read deeply such writers as St. Teresa of Avila and Thomas Merton. These were all interests that he shared with his friend, the Catholic writer Christopher Derrick. In 1971, he converted to Catholicism.[11]
Schumacher gave interviews and published articles for a wide readership in his later years. He also pursued one of the loves of his life: gardening. He died of a heart attack on 4 September 1977, in Switzerland, during a lecture tour.
Schumacher's personal collection of books and archives are held by the Schumacher Center for New Economics' library in Great Barrington, Massachusetts. The Center continues the work of E. F. Schumacher by maintaining a research library, organising lectures and seminars, publishing papers, developing model economic programs, and providing technical assistance to groups all for the purpose of linking people, land, and community to build strong, diverse local economies.[12]
Schumacher Center For New Economics (formerly The E.F. Schumacher Society) in Great Barrington, Massachusetts, which houses his personal library and archives.
