Achieving Sustained, Indigenous and Inclusive Growth (The Allama Iqbal Lecture)

Sung-hee Jwa

Abstract


The world economy is now facing paramount problems such as
long tern stagnation of economic growth and worsening income
distributions (or economic polarisation). This is even more
embarrassing, because the humans have been seeking more equal society
during the post-WWII era by engaging in the revised capitalism or social
democracy by the most of capitalist developed economies, the balanced
growth strategies under social democracy by most of the developing
economies and more dramatically the socialist economic regime by the
already collapsed socialist blocs, not to mention the still barely
surviving North Korea. “Growth stagnation and economic polarisation” is
not the one which has been intended and anticipated by policies but is
opposite to intention as well as expectations. Some of the critics on
capitalist economy have been arguing that this is the outcome of the
fundamental contradiction of the capitalist economy from the Marxian
perspective and/or the result of the neoliberal policies since the 1980s
[Piketty (2014) and Stiglitz (2012)]. However, if one understands that
the neoliberalism had short-lived only during the Thatcher-Reagan era,
of course with some lingering effects, this episode can be seen as a
typhoon within the tea cup. In this regard, broadly speaking, the common
underlying institutions of post-war politicaleconomy regime of the world
economy can properly be called as the economic equalityseeking
“egalitarian democracy” which includes the revised capitalism and social
democracy, not to mention the socialism. Therefore, one can see that the
efforts to create more economically equal society or in other words, the
shared growth have in fact created more unequal as well as
growth-stagnated economies against the intention as well as expectation.
This seems to be the fundamental dilemma faced now by the world
economies and these are perhaps waiting for the economic as well as any
other social science profession to come up with a solution to it. Of
course, some naive Marxists or leftist economists would claim that this
phenomenon of the worsening income inequality is simply the fact of the
capitalist economy

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DOI: https://doi.org/10.30541/v55i4I-IIpp.267-287

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