ΙΜF:FINANCE & DEVELOPMENT

 

Art: Sally Deng; iStock / Tamara Luiza Dear maria, How should economists measure growth and prosperity? How much should inequality and redistribution drive economic policymaking? What should define the social contract between a government and its people? The pandemic may be accelerating a rethink of economics as we reconsider what we value as individuals and as a society. In recent issues of Finance & Development, we've tried to shine a light on areas of new thinking in economics. In our most recent issue, Miles Kimball and co-authors write about the principles that could define a new measure of economic prosperity beyond Gross Domestic Product to account for happiness and satisfaction. Also in the issue is a piece by Gillian Tett, which argues for a more anthropological approach to policymaking taking into account the cultural and environmental context of peoples' lives--a practice that could find value with policies ranging from mask wearing to renewable energy. In a world now two years into a global pandemic, peoples' expectations of government and authority may be changing. Minouch Shafik writes about what could form a new social contract for the 21st century that rethinks how society shares risk, provides social safety nets, and creates opportunity. The pandemic and the moral choices it has brought has spread into economics, write Samuel Bowles and Wendy Carlin, cofounders of the CORE Project, which is an effort to update and advance undergraduate economic curriculum by including aspects of empathy, altruism, and care for the environment. Ethical considerations are unavoidable, especially those of fairness and solidarity, even among strangers, they write. Rising inequality has raised questions over redistributive policies. Binyamin Applebaum argues that the field of economics should stop turning a blind eye to the distribution of prosperity and no longer consider it a political debate. Ideally, a rethinking of economics will lead to different approaches and, potentially, even a broader paradigm shift. Martin Sandbu writes that the pandemic should bring about these fundamental shifts. Leaders face "revolutionary questions" that could potentially reset the course of their societies. Ian Goldin looks at how global challenges like pandemics and climate change require a rethink of global cooperation. And as technology and automation grow more intertwined with our economic destiny, Daron Acemoglu writes on how we need to shape innovation in a beneficial way. We are grateful to be able to share these keen insights with you and appreciate your readership and engagement over what has been yet another momentous year. In the year ahead, we are working to provide more thoughtful and relevant pieces both in our quarterly issues and online special features. Happy holidays to you and yours! We'll see you next year. Check out our latest December Issue of Finance & Development.  We also recently published a special series of articles that give a closer look at the issues critical for the development of sub-Saharan Africa. Adam Behsudi Senior Editor F&D Magazine abehsudi@IMF.org