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北京大学英语新闻网/Peking University News Fifth Yan Fu Economic Lecture: Rethinking the Welfare Standard PKU NEWS 2007--12—01 http://ennews.pku.edu.cn/news.php?s=196653268 Peking University, Dec. 1, 2007: With China‘s economy growing rapidly, such questions as what new criterion should be adopted in measuring Chinese‘s living standard is causing more and more attentions from the public and the government. On Nov. 28th at the Fifth Yan Fu Economic Lecture held in China Center for Economic Research (CCER), Prof. Prasanta K. Pattanaik from University of California, an authority on welfare economics gave his answers to those questions. In his speech, ―The Concept of Well-being and the Measurement of Living Standards‖, Prof. Pattanaik pointed out that today the international community is paying more attention to and rethinking about the ways of national development, especially such traditional ways for the developing countries as putting the economic growth into the premier place. Pattanaik gave an introduction of the great contribution to welfare economics by Amatiya Sen, the Nobel Prize winner on economics in 1998. Pattanaik explained his new thoughts on the individual welfare using a method invented by Sen, the ―functioning approach‖. In contrast with the traditional ―utility maximum‖ view of the utilitarian welfare economics, the ―functioning approach‖ suggests that the difference among individual judgments toward utilities makes interpersonal comparisons of utilities impossible, and therefore ―utility maximum‖ is not a suitable standard of individual welfare; the ―social functioning approach‖ combines all possible individual behaviors and states as a new concept called ―functioning‖. People are able to obtain freedom of choices to realize personal developments through their ―functioning‖. The theory regards freedom and development rather than utility satisfaction gained from consumption as the primary standard of individual welfare, thus releasing economics from the fetter of utilitarian views. Then what‘s the practical meaning of that theory? Pattanaik believed that today people were accustomed to using income as a criterion of measuring living standard, overly valuing the effects of material factors while neglecting such non-material factors as health, leisure and interpersonal relations, which is obviously based on a utilitarian viewpoint. As a counter fact, Pattanaik introduced Sen‘s ―human development index‖, another 338
北京大学英语新闻网/Peking University News new concept of his first used in the ―Report on Human Development‖ of UN as a new measurement of human development. It extends the concept of development to fields besides economic growth by attaching more importance to average life span, education spread and basic incomes, trying to look at social and economic developments from a more comprehensive angle. Pattanaik also said that people‘s views on what factors affect their welfare were not the same in different times, with different cultural and personal background. Therefore, to some extent, those non-material factors in individual welfare were hard to be measured and compared by a quantifiable standard, and the subjective judgments of individuals were not likely to be measured under a same measurement system as well. However, within a specific time period and social environment, the standard of welfare could still be improved, which was the direction the society, especially those developing countries should followed. Edited By : Wang Yi Translated By : Ding Zhilan Source : www.caijing.com.cn Related Topic : Related News : Related Feedback : 339
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