A solution can be found to every one of these problems, if only we are willing to think outside conventional boundaries. The concept of efficient market theory to maximize return to investors has to be replaced by a theoretical framework that maximizes the efficiency of society as a whole by the full utilization of all available social resources to improve human welfare and well-being.
This Forum seeks to formulate a comprehensive package of solutions to mobilize the enormous untapped potentials of human and social capital based on far-sighted, ecologically sustainable economic policies; advanced delivery systems for higher education and vocational training; innovations in the application of science and technology; and new types of social networks and industrial clusters; together with strategies to release and direct social aspirations and energies into new fields of creativity.
Scientific knowledge, technological developments, infrastructure and productive capabilities, educated and skilled human resources, entrepreneurial skills, commercial organization and a rapidly expanding global social network offer unprecedented opportunities for rapid social progress.
Our problems arise from a mismatch between resources and opportunities: social science theory that is divorced from real world functioning, financial markets that siphon off funds from investment in the real economy, capital and technology-intensive manufacturing strategies that eliminate labor resulting in higher levels of unemployment and falling consumer purchasing power, educational systems that fail to impart the knowledge and skills required by the labor market, energy production technologies that threaten the ecosystem, mispricing of natural resources leading to overexploitation and waste, national level institutions incapable and unwilling of coping with global level problems. What is needed is to approach the challenges and the opportunities comprehensively and evolve an integrated package of solutions.
Incremental changes in public policy based on the present conceptual framework will only aggravate problems that are already acute.
At the same time, the resources and capabilities of global society have never been greater than they are today.
Panel 1: The Aim of Economy Panel 2: Boundaries of Economics Panel 3: The Role of Financial Markets Panel 4: The Concept and Measurement of Economic Value Panel 5: Beyond the Industrial Revolution Panel 6: Static vs.
Evolutionary Economic Theories3 Current theories based on the efficiency of markets overlook the gross inefficiency of economic systems that seek to maximize return to investors by wastefully consuming natural resources or grossly undervaluing and underutilizing human capital.
If the problem of overproduction does not seem understandable, then consider this fact: It is the crisis in which we now find ourselves.
Again and again, capitalism is shaken by a situation in which people lack the purchasing power to buy that which has been produced.