Contextual Economics
A process-relational intervention for personal and planetary wellbeing
Keywords:
Process philosophy, Doughnut economics, Ecological economics, Politics Philosophy and Economics (PPE), Ecological civilisation, Personal and planetary wellbeingAbstract
Contextual economics weaves together aspects of orthodox and heterodox economics theories (e.g. feminist, ecological, Keynesian and Marxist economics) in such a way that (re)interprets formal economic models within changing social, historical and environmental contexts. Drawing from the work of Julie Nelson, Kate Raworth and process philosophers, this paper conceptualises the contextual economic paradigm as nesting static abstractions within changing contexts. This brings into question the static metaphysics assumed by mainstream neo-classical economics, and presents an alternative basis for economics arising from process-relational metaphysics. This leads to an economics that: situates the economy as a subsystem of society and ecosystems; replaces Homo economicus with persons-in-communities; and redirects economic policies from profit and GDP growth to purpose and improving wellbeing. This shift in thinking, metaphysics and economics—nesting static in processes—is posited as a critical reorientation of economic decision-making for personal and planetary wellbeing.
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