COLLECTIVE INSTITUTIONS IN INDUSTRIALIZED NATIONS: Economic Lessons for sub-Saharan Africa

Nonfiction, Social & Cultural Studies, Political Science
Cover of the book COLLECTIVE INSTITUTIONS IN INDUSTRIALIZED NATIONS: Economic Lessons for sub-Saharan Africa by Samuel Enajero, Ph.D., Page Publishing, Inc.
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Samuel Enajero, Ph.D. ISBN: 9781682136652
Publisher: Page Publishing, Inc. Publication: December 8, 2015
Imprint: Language: English
Author: Samuel Enajero, Ph.D.
ISBN: 9781682136652
Publisher: Page Publishing, Inc.
Publication: December 8, 2015
Imprint:
Language: English

 Fundamental institutions are core values that originate from beliefs. Beliefs reflect on behaviors and repeated behaviors become habits. Shared habits are peoples’ values, which when ingrained become norms and customs. Societies that believed in human interdependency formed collective institutions. These institutions are compatible with modern economic prosperity. Thus, Contrary to conventional economic teaching, which implies that behaviors, including preferences are biologically determined, all socially relevant behaviors, including economic behaviors are acquired, learned and routinized through habits (institutions) in which individuals find themselves.

Again, contrary to popular beliefs that economics is about “pursuit of self-interest” as stipulated by Adam Smith (1776), the “pursuit of self-interest” does not translate to selfishness. For example, an entrepreneur relies on public capitals and skilled labors to succeed; a producer relies on adequate consumption to produce at capacity; a firm’s profit is enhanced with higher consumer income, etc. Therefore, capitalism is a function of collective institutions.

Collectivism is a solution to group interdependency. People sharing the same space are interdependent and are faced with interdependency costs. Interdependency cost equals external cost plus decision making cost. Failures to eliminate or minimize external costs (externalities) through collectivization of activities result to resource misallocation. The problem of sub-Saharan Africa.

Moreover, modern development theories are constructed around macroeconomic variables. Money, banking, interest rate, savings, trade liberalization, financial assets, deficit and debt management are modern macroeconomic development tools. These are based on aggregation of data and variables. Thus, collectivism is more pronounced in macroeconomic policies. Yet, many emerging nations of sub-Saharan Africa, do not find it mandatory to build all-inclusive economies by mobilizing resources en masse.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

 Fundamental institutions are core values that originate from beliefs. Beliefs reflect on behaviors and repeated behaviors become habits. Shared habits are peoples’ values, which when ingrained become norms and customs. Societies that believed in human interdependency formed collective institutions. These institutions are compatible with modern economic prosperity. Thus, Contrary to conventional economic teaching, which implies that behaviors, including preferences are biologically determined, all socially relevant behaviors, including economic behaviors are acquired, learned and routinized through habits (institutions) in which individuals find themselves.

Again, contrary to popular beliefs that economics is about “pursuit of self-interest” as stipulated by Adam Smith (1776), the “pursuit of self-interest” does not translate to selfishness. For example, an entrepreneur relies on public capitals and skilled labors to succeed; a producer relies on adequate consumption to produce at capacity; a firm’s profit is enhanced with higher consumer income, etc. Therefore, capitalism is a function of collective institutions.

Collectivism is a solution to group interdependency. People sharing the same space are interdependent and are faced with interdependency costs. Interdependency cost equals external cost plus decision making cost. Failures to eliminate or minimize external costs (externalities) through collectivization of activities result to resource misallocation. The problem of sub-Saharan Africa.

Moreover, modern development theories are constructed around macroeconomic variables. Money, banking, interest rate, savings, trade liberalization, financial assets, deficit and debt management are modern macroeconomic development tools. These are based on aggregation of data and variables. Thus, collectivism is more pronounced in macroeconomic policies. Yet, many emerging nations of sub-Saharan Africa, do not find it mandatory to build all-inclusive economies by mobilizing resources en masse.

More books from Page Publishing, Inc.

Cover of the book COLORS of LIFE - Deathbed by Samuel Enajero, Ph.D.
Cover of the book A Cry For Justice by Samuel Enajero, Ph.D.
Cover of the book Out in the Sun by Samuel Enajero, Ph.D.
Cover of the book Lost Child of the Song by Samuel Enajero, Ph.D.
Cover of the book For My Beautiful Black Sister by Samuel Enajero, Ph.D.
Cover of the book Nibiru's Final Servitor by Samuel Enajero, Ph.D.
Cover of the book SCAFFOLDING - THE HANDBOOK FOR ESTIMATING and PRODUCT KNOWLEDGE by Samuel Enajero, Ph.D.
Cover of the book A Chance for Fulfillment by Samuel Enajero, Ph.D.
Cover of the book The Adventures of Mickey by Samuel Enajero, Ph.D.
Cover of the book Locked Room Mysteries by Samuel Enajero, Ph.D.
Cover of the book Stoned Dead by Samuel Enajero, Ph.D.
Cover of the book Substantially Incapacitated by Samuel Enajero, Ph.D.
Cover of the book Of Labor For Labor By Labor: A Plan for Economic Security by Samuel Enajero, Ph.D.
Cover of the book Poems of Life by Samuel Enajero, Ph.D.
Cover of the book Love That Never Dies by Samuel Enajero, Ph.D.
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy