"A new economic model: Development as Freedom," Amartya Sen (1998)
- A proposed international taxation of foreign exchange to limit the pressures of capital mobility
- ?A grain of sand? in the workings of foreign exchange transactions
- An original project which aimed to discourage "speculation that perform forward and backward a few weeks"
- The reinterpretation of the project and its extensions: a roundabout idea
- The expected benefits of the tax
- Increased autonomy of monetary policy
- A decrease in the volatility of foreign exchange market
- Better protection against currency crises
- Revenue received by the Tobin tax
- A tax often described as utopian and meets many objections to the benefit of more realistic alternatives
- The introduction of the tax would raise practical difficulties
- Implementation difficult
- Terms of employment and revenue management which remain to be found
- Efficiency challenge
- The perceived risks associated with the implementation of the tax
- Proposals for controls on capital movements alternatives, but remain just as difficult to implement
- The experience of the deposit has not convinced more
- The CBCT, another promising tax plan?
"A new economic model" (original title: "Development as Freedom") the work for which Amartya Sen won the Nobel Prize in Economics in 2003, was written in 1998. It begins with the damning of the concomitance of an unprecedented growth of wealth during the past century, and the persistence of endemic poverty, characterized by the lack of "ability to live the life you want" while the theories and attempts to aid developing countries are developed over several decades. Amartya Sen's life is marked by change. A native of Bangladesh he began his studies in India before the finishing in one of the most prestigious universities of the West, of which he later became one of major figures (Harvard professor and director of Trinity College, Cambridge). Having focused his research on the economic theory of choice of technology and growth, he turned to two other areas: the theory of well-being and that of collective choice. But it was his research on human development, poverty and famine was recognized, and in which there is more debate involved, as he participated in the design of HDI and was the advisor to the UNDP Human Development department. Sen uses the latter as one of the major theses of his book: the need for public debate in the quest for development. In his preface, he states his intention to design his book as an "offer of domain and public debate" and not as an economic consulting work for political leaders, based also lectures at the World Bank in 1996. On the merits, Sen makes a real small "revolution" in the design of development: "Development as Freedom."
One will see that the model proposed by Amartya Sen provides a new approach to the concept of development that is based on freedom "in the form of planned capacities of people to accomplish what they have reason to want to do." In agreement with the Western liberal model including American theories of development that emerged in the second half of the twentieth century based on the objectives of economic and industrial growth. This model measures the level of development of a country as the sole criterion of wealth that it is capable of generating (GDP). Southern countries such as African and Asian countries are countries that failed to get rich, they are by their definition of development of undeveloped countries, or "developing". The "Washington Consensus" refers to all the reforms recommended to indebted poor states, tends to impose strict budgetary discipline and therefore a reduction in public spending, export promotion and trade liberalization, in this order to take off their economic growth, ie GDP / capita. But in doing so, as the author points out, they do not take into account the problems faced by developing countries, such as the socialization of human inequalities and the strengthening of the worsening of poverty . This is to show that the development as increasing wealth is a value that Western countries try to impose on underdeveloped countries, either (it would be too naive to believe) to bring their well-being of modern societies , or for reasons of economic and trade associated with globalization.
Tags: Amartya Sen; Development of Freedom; a new economic model;