Main trends of research in the social and human ... - unesdoc - Unesco

294 Economics
The persistence of these two trends in contemporary economics stems not
only from the classical capital-labour contradictions but also from their specific
geographical institutionalization in the capitalist and communist worlds; so
much so that the political outcome of confronting the two sometimes gives the
impression that the principle of cuius regio eius religio applies. Although often
unconsciously, economists participate actively in this confrontation.13 Looking
realistically at contemporary development trends therefore, it is evident that the
existence of these two trends in economics wil impose limitations on the process
of integration which, during the next few decades, will most likely proceed pri-
marily within each of them. Under these circumstances, integration in economic
science (on the same lines as in the natural sciences) can hardly be expected. For
the present, we must content ourselves with classifying the factors and phe-
nomena that contribute to integration or are reflections of it, and those that are
contrary.
a. The rapid development of widely-accepted research techniques (e.g. input-
output analysis, econometric methods of market research) is one positive factor.
During the last three decades, there has been a remarkable expansion of quanti-
tative methods of economic analysis that has produced several new disciplines
(either created or adapted by economists) such as econometrics, programming
theory, operations research; and a new approach to theoretical problems. Theo-
retical hypotheses are now formulated in such a way that they can be tested by
statistical methods. Theorists employ mathematics to give greater precision to
their reasoning - undoubtedly a great advance. Thirty years ago, measurement
was systematically employed only in statistical research on price fluctuations,
the basic task of many business cycle research institutes; now, there is no aspect
of economic life in which some attempt at least is not made to approach eco-
nomic phenomena quantitatively.
b. Another integrating factor is the increase in the stock of concepts and
categories (e.g. national income, investment, savings, types of technical progress)
which are used with at least approximately the same meaning by contemporary
economists, statisticians and econometricians. The clear definition of terms -
including those which may be used with differences of scope or several meanings
-has become the general practice; this also makes it easier to pass from one con-
cept to another.
c. Again, most economists now have a pragmatic approach to the distinction
between micro-economic and macro-economic methods; previously considered
absolutely contradictory, they are now increasingly regarded as complementary
- aview already put forward in 1950 by Kenneth Boulding (A Reconstruction of
Economics, New York 1950). This view was vehemently opposed by Friedrich
von Hayek, who argued that macro-economics prepared the way for total irra-
tionalism and should be rejected,Iq but Boulding’s opinion is regarded as mark-
ing an important step forward in economics in recent decades.15
These are the positive factors;16 the following are the most important among
those which are contrary or unfavourable.
a. Recent decades have been marked by an absence of broad discussions and
important writings on the general foundations and methodology of economics.