Academic
Foundation of the ‘Science of Prosperity’
1. Is it possible to become ‘science of prosperity, as a sector science of economics?
In order to become a certain
research as a sector science of academy it should full fill following the terms
of conditions;
·
Possession of the value
reflecting the characteristics for special sector.
2. Emerging the ‘Science of development economics’
Since the World War 2,
international community started to concern in economic development for less
developed countries. It focused to eliminate absolute poverty as a direct task
and getting priority for economic development policies for sustainable economic
growth structure. That was the starting of sector science of development
economics'. The Bretton Wood Agreement as an international supporting system
launched IBRD as a helping institution for economic development of developing countries
and also IMF and GATT for the sustainable economic development of international
community. These supporting systems have developed continuously and still
remain as a central role for international economy management.
Academic foundation of 'science
of the development economics' was representing the strategy of 'Economic
growth'. Through the economic growth, the quantity of GNP can be expanded, and
simultaneously absolute poverty numbers minimized on this foundation.
Industrial development policies were pursued as a detailed measure for economic
development. In order to expand investment for industrial development, a series
of economic policies have been tried like savings expansion, economic aids for
development and trade expansion policy etc. As a means for efficient pursuing these goals,
many developing countries preferred to take a system of ' economic development
plan'. Even now, a few of developing countries are fond of this like
comprehensive development plan system.
It has passed a period of time
for 70 years after World War 2. During the period of time, some countries
promoted to advanced countries and some upgraded to new industrialized
countries as an emerging market. There are still remained as a group of
developing countries and substantial number of absolute poverty groups but the
share of number of those groups to total are diminishing. At present, 34 countries joined to OECD
member so called certified advanced economy. In case of Korean economy, Korea
took the membership of OECD in 1996. Since then, Korean economy is getting
recognition of upgrading the existing weight among the members.
The influences of the financial bankruptcy
of Leman Brothers in 2008 to the world economy were serious. The most significant
thing was the fact that so called advanced economy which was one of the
respecting model for developing countries showed their naked faces without
cosmetics of taking deal with the real economic difficulty to world. From
Greece, Italy, Spain, France, England to Japan, Ireland faced the similar difficulty.
The naked figures of these countries made the rest of world understand they are
not so great capability to overcome difficulties comparing with the rest of
them. Those became different meanings in
terms of expectation which advanced countries might show a different style of
overcoming difficulties with developing countries to handle the issues.
3. Confusion of the value system pursued by development economics
Development economics started to
be premised on the government directions in national economic management from
the beginning because the pursuing goal was limited to economic growth. Also,
naturally developing countries preferred to have economic development plan
system in order to take a strategy of enhancement of the development performances
within the limited time. It was the reason why many of developing countries
have taken the economic development plan system because of the specific
characteristics of development economics.
On the other hand, so called
advanced countries like US which were satisfied with the superiority of war
winner countries have taken policies of swinging between Keynes and Hayek
following the governments. After then two major changes came out since Reagan
government of United State ‘money supply’ as a major policy variables equivalent
to existing ‘national budget’ and ‘neoliberalism’ based on small government
which was initiated by Friedman became a principal value for the national
economic management. That also emphasized the importance of finance economy as
well as the real economy. Naturally, Wall street started to show a significant
role as a more important places for world economic management.
On
the other side, the invisible hand of Adam Smith asked to become the prerequisites
of accuracy in market role but sometimes real economy failed to prove this in
reality. Sinking of Leman Brothers in 2008 drove the world economy at edge of
sinking together and in this period of time the influence gaps of economic emergencies
between individual countries expanded following the individual economic situations.
The confusions of national
economic management of 21 century have been along continuing bearing with the structural
contradiction in both of development economics and new free economics of neo
liberalism.
The strategic industry
development in development economics created many of success stories and also
became a basement for step forward but simultaneously showed the results
expanding the gaps of development between the groups of participated and non
participated. These gaps expanded unbalances of income distribution and pushed
up the social issues of so called ‘have and have not group’.
The social unbalances made taking
care of the low income bracket become a important policy value as well as on
the other side ‘individual happiness’ arising the importance of the policy value. But there can be possible
the conflicts becoming serious between values of individual happiness if the
individual values too much seized to personal interest. In order to solve this
problems, the ‘Rule of game’ is becoming more important policy values. Under
the situations changes, general concerns about the development economics looks to start fade away slowly.
4. The value system pursued by prosperity economics
The value system pursued by prosperity
economics is continuing the sustainable economic development strategies. Based
on the economic growth, it is pursuing the up grading income level and more
deepening the economic development structure. Simultaneously it is toward
maximizing the guarantee of personal freedom, equitability and happiness.
As a means of developing value
system, the existing two value systems of development economics and
neoliberalism are needed to get merged together with as a value system. It is
needed to develop the development economics based on economic growth and also
succeeded the neoliberalism being prerequisite the market efficiency.
5. Suggestions for a new methodology of approaches
The methodology of new approaches
to succeed reaching new value system by prosperity economics emphasizes for
supplying new policy alternatives, quick winning rather than a scientific
theory development. But the new theoretical researches are also exploded
1)
Based on neoliberalism
2) Re- systemize the function of government suggesting the necessities of market intervening and the limits to intervene rather than unconditional pursuing small government.
3) The positive government support system to the market failures be up graded to the level of ‘happiness pursuing right’. A little bit subjective theory differed concept from democratization of economy which is more political gesture and struggling between ‘have and have not’.
4) Fare trade order and rule of game should be pursued perfectly. The power balance between superior(甲) and subordinated(乙) no more becoming the elements of social conflicts.
5) New Brettonwood be pursued for the purpose of co-development together with the advanced economy and developing economy through the up grading IMF and WTO system which is more focusing on advanced economy oriented.
1. Is it possible to become ‘science of prosperity, as a sector science of economics?
·
Suggesting the present
problems of related sector.
·
Suggesting the new
approaches to solve the problems
2) Re- systemize the function of government suggesting the necessities of market intervening and the limits to intervene rather than unconditional pursuing small government.
3) The positive government support system to the market failures be up graded to the level of ‘happiness pursuing right’. A little bit subjective theory differed concept from democratization of economy which is more political gesture and struggling between ‘have and have not’.
4) Fare trade order and rule of game should be pursued perfectly. The power balance between superior(甲) and subordinated(乙) no more becoming the elements of social conflicts.
5) New Brettonwood be pursued for the purpose of co-development together with the advanced economy and developing economy through the up grading IMF and WTO system which is more focusing on advanced economy oriented.
