A modern Scandinavian “Saga about political economy”: “Against the Stream. Critical Essays on Economics” by Gunnar Myrdal

Introduction. It is proposed to pose the question of the original understanding of fundamental economic science as a political economy, presented by Gunnar Myrdal in the book “Against the Stream. Critical Essays on Economics”, which can be regarded from a certain point of view as a modern Scandinavian «Saga about political economy». Hermeneutic analysis. G. Myrdal’s paradigm concept, based on the concept of “establishment economics” was more meaningful than the modern use of the term “mainstream” to characterize the dominant flow of economic thought. The theoretical and methodological substantiation of the scientific hypothesis about the periodic emergence of crises and the formation of the economic science evolution cycles made it possible to explain the chronology of the Keynesian paradigm ascent and decline cycle by changes in economy and society. The arguments in favor of the institutional approach prompted a fundamental conclusion about the advisability of returning economic science to the original name of political economy and restoring its spiritual, moral, value dimension. G. Myrdal questioned and refuted the traditional abstract assumption about the conflict between economic growth and egalitarian reforms, for which one must pay a high price such as the national economy productivity decline, proposed the concept of “created harmony” to characterize the modern welfare state. Conclusion. The interpretation of the scientific monograph “Against the Stream. Critical Essays on Economics” in the style of Scandinavian “Saga about political economy” added a lot of very interesting details, judgments, explanations that substantively complemented the theoretical and methodological approach, showed the opportunity to study, research and present the history of economic thought in an attractive literary style without sacrificing depth and completeness of acquired knowledge.

Potyczki metodologiczne Gunnara Myrdala

Purpose – The aim of this paper is to show the methodological approach in the works of Gunnar Myrdal, with particular emphasis on the publication of The Political Element in the Development of Economic Theory [Myrdal, 2017] – a leading theoretical and methodological work, as well as including the main methodological divisions in economics and the evolution of the Myrdal`s concept in the analysed substantive scope. Research method – In the article uses the descriptive and comparative analyses were used. Results – Myrdal reinforced the arguments of heterodox economists in the context of the symbolic `fight for recognition` of the methodology of mainstream critics. He developed a pragmatic element of economics, which in turn influences the style of teaching economics and conducting scientific research at world universities.

TD 2598 - Os Médicos, a Saúde Como Completo Bem-Estar e a Questão do Desenvolvimento

Este estudo procura evidenciar que a conhecida definição de saúde como um completo bem-estar, conforme consta dos estatutos da Organização Mundial de Saúde (OMS), definidos em 1946, surgiu da influência da doutrina utilitarista de Jeremy Bentham sobre alguns médicos europeus propugnadores da medicina social. Considera-se que a ideia de completo bem-estar deve também ser interpretada prospectivamente pela questão econômico-social do desenvolvimento, conforme seria ratificado em 1952 mediante as ideias desenvolvimentistas do economista sueco Gunnar Myrdal. Neste trabalho, são expostas brevemente as ideias desenvolvimentistas de dois médicos brasileiros, seguidores de Myrdal, Josué de Castro e Mário Magalhães da Silveira. Ademais, o texto defende a tese de que a difusão dos estudos acerca da transição epidemiológica a partir da década de 1970 fez com que médicos pesquisadores de diferentes partes do mundo viessem a renovar seu interesse pela questão do desenvolvimento, especialmente em relação à prioridade das doenças tropicais negligenciadas, entendidas como uma falência da promessa de saúde como completo bem-estar. Adicionalmente, o texto enfoca as ideias de cunho humanista de Amartya Sen sobre saúde como liberdade, e a concepção fenomenológica de Martin Heidegger sobre saúde como estar bem.

Prologue

Gunnar Myrdal published his magnum opus, Asian Drama: An Inquiry into the Poverty of Nations, in 1968. At the time, I was a graduate student in economics at Oxford. It was a subject of conversation among students outside the classroom. It was brought up in questions at seminars about development. It led to animated discussion in the lively common room at Balliol College. It was also written about. The book made a splash. I walked across to Blackwell’s next door and bought the three volumes, at twenty-five shillings (GB£1.25) each, for what was then a princely sum. And I read it, all 2300 pages, over the next six months. The primary motivation was that so much of the book was about India. But, in late 1968, after a tumultuous summer in Europe, it was also fashionable to be unfashionable in economics. Myrdal was critical of mainstream economics. It also coincided with the beginnings of change in my own thinking about development. Orthodox trade theory, which I had been immersed in, was no longer an exciting prospect. I had decided to work on India for my doctoral dissertation. Paul Streeten, who had had just returned to Oxford, agreed to supervise my research. Streeten and Myrdal were good friends who had worked closely with each other. It was sheer coincidence that I met Gunnar Myrdal at dinner in Paul Streeten’s home. To be honest, I was overawed, for Myrdal had a reputation of being totally absorbed in his work, which was his life. But he was relaxed while chatting over dinner, to my relief not about India. He propounded a counter-intuitive thesis that one should expect young people to be conservative and to become more radical as they grow older. My intuitive belief, then, was the exact opposite. It was difficult to resist the temptation of getting into an argument. Fortunately, the wit and charm of Thomas Balogh, among the guests at dinner, came to my rescue....

Resurgent Asia

Resurgent Asia analyses the phenomenal transformation of Asia, which would have been difficult to imagine, let alone predict, fifty years ago, when Gunnar Myrdal published Asian Drama. In doing so, it provides an analytical narrative of this remarkable story of economic development, situated in its wider context of historical, political, and social factors, and an economic analysis of the underlying factors, with a focus on critical issues in the process of, and outcomes in, development. In 1970, Asia was the poorest continent in the world, marginal except for its large population. By 2016, it accounted for three-tenths of world income, two-fifths of world manufacturing, and one-third of world trade, while its income per capita converged towards the world average. However, this transformation was associated with unequal outcomes across countries and between people. The analysis disaggregates Asia into its four constituent sub-regions—East, Southeast, South, and West—and further into fourteen economies—China, India, South Korea, Indonesia, Turkey, Taiwan, Thailand, Philippines, Malaysia, Singapore, Pakistan, Bangladesh, Vietnam, and Sri Lanka—which account for more than four-fifths of its population and income. This book enhances our understanding of development processes and outcomes in Asia over the past fifty years, draws out the analytical conclusions that contribute to contemporary debates on development, and highlights some lessons from the Asian experience for countries elsewhere. It is the first to examine the phenomenal changes that are transforming economies in Asia and shifting the balance of economic power in the world, while reflecting on the future prospects in Asia over the next twenty-five years. A rich, engaging, and fascinating read.

The Dilemma of Balancing Growth and Social Justice

At Independence in 1947, India emerged from a century and half of economic stagnation, a radicalized and land-hungry peasantry, chronic food deficit and the spectre of mass starvation and famine looming over parts of the country. Faced with similar challenges, post-war ‘developmental states’ followed the course of economic development based on a template of state-controlled economic designs for growth, investment and trade. However, despite the challenge of resettling millions of refugees following the bloody partition of the country, war against Pakistan, and a violent peasant uprising in the South, the government of India, under the leadership of Jawaharlal Nehru, decided to open up all aspects of politics to democratic consultation. Many specialists of the time, including Barrington Moore and Gunnar Myrdal considered a ‘soft-state’, whose power and legitimacy derived from popular consent, to be ill-equipped to take hard decisions such as land reforms, and industrial growth. Contrary to such pessimistic prognoses, India has held together as a strong, stable, emerging economy. One can infer the strength and ingenuity of the Indian model in meeting the twin imperative of growth and justice from the steady growth of Indian economy and democratic consolidation over the past seven decades since Independence.