Post-Neoliberal Economics

This chapter summarizes the important historical contribution made by liberal economics in accelerating economic growth and reducing poverty, while examining its profound and persistent difficulty in responding effectively to societal demands for greater social inclusion, environmental sustainability and resilience to major shifts and shocks. It traces a growing body of evidence and criticism that modern economics may be constitutionally incapable of addressing these considerations adequately.

This central theoretical chapter of the book proposes to reformulate the standard liberal growth and development model by formally internalizing within it the critical role played by institutions (norms, policy incentives and public administrative capacity in key domains) in improving the social quality of growth---"aggregate social welfare" or the general standard of living---while also often helping to increase its quantity (aggregate production or GDP).

This concluding chapter interprets the potential larger significance of the concepts and tools presented in Human-Centred Economics: The Living Standards of Nations for the academic discipline of Economics and the political fortunes of the liberal tradition more generally in the 21st century.