Adolfo Figueroa

Universal and Local Understanding of Poverty in Peru

The purpose of this survey of the literature on poverty in Peru is to contribute to universal and interdisciplinary understanding, while at the same time giving due weight to discipline-specific contributions. The first three sections review relevant literature on Peru by economists, social anthropologists and sociologists. The strict positivism of much economic literature renders it susceptible to neglect power relations and assume a benign and universal process of modernization. Anthropologists have revealed the importance of local cultural identity, but at the risk of downplaying universal dimensions of well-being. Sociologists struggle to reconcile a universal analysis of class structure with renewed emphasis on individual and collective agency in adversity. The last section puts forward an integrating theoretical framework centred on the concepts of inclusion and exclusion. In contrast to the ‘tragic optimism’ of Sender this theory of social exclusion can best be summed up as ‘constructive pessimism’.

Income distribution, demand structure and employment: The case of Peru

The present growth process of Peru is characterized by a relatively low rate of labour absorption in the modem firms (together with growing urbanization and urban under‐employmenf). This fact, which is common in underdeveloped countries, has been usually attributed to factor market imperfections and/or imported technology. This study attempts to estimate empirically the hypothesis that the rate of industrial employment may also be influenced by the demand structure which is associated with the existing income distribution profile in Peru. The result is that income transfers from the rich to the poor would increase industrial employment. This ‘redistribution effect’ is not remarkably high, however. For example, a 3 per cent increase in industrial employment would require a selective redistribution of 6 per cent of Perus national income.

Economics of the Anthropocene Age

This book uses Figueroa’s unified theory of capitalism to explain how economic growth has led to a new epoch, the Anthropocene, and it presents a new set of economic principles that are needed in this new age. The policies presented in the book are derived from an empirically corroborated scientific theory. Therefore, this book is unique in its discussion of public policy as the result of scientific knowledge, rather than based on ideology or private interests. In the new epoch we have entered, man is now the main factor in the fate of the Earth, and in social terms, the Anthropocene age also implies a period of high and persistent income inequality in the capitalist system, with the consequence of social disorder. Figueroa considers these conditions and addresses fundamental problems of our time, such as the ideal organization of production and distribution, and the functionality of a zero-growth society. Standard economics would approach these problems under the assumption that we still live in the Holocene age, but in this book, Figueroa both explains and develops new economic principles for this new context.

Agrarian reforms in Latin America: A framework and an instrument of rural development

Abstract Rural poverty is one of the more persistent problems of less developed countries, and land reform is a frequently advocated solution. This paper examines the prospects for land reform both by itself and in conjunction with other policies. The prospects for a rural development strategy consisting only of land reform are not good. We find that any development programme must address more than just land tenure patterns if it is to have a significant impact on rural or urban poverty. However, even though land reform alone is not an adequate solution, it is an ideal framework within which other policies can be implemented. Land reform realizes its greatest potential when it serves as such a framework for other policies.

The Economic Process

The process epistemology of Georgescu-Roegen is one of the logical pillars of economics. Its application makes economics a science and a social science. This chapter is devoted, firstly, to the understanding of the concept of economic process and, secondly, to make it operational by distinguishing different types of economic processes. In particular, special attention is given to the distinction between mechanical processes (which include static and dynamic) and evolutionary processes, and then to deterministic and stochastic processes. Finally, the process epistemology is extended to the other social sciences.

Rules for Scientific research in economics

The new research method presented in this book ensures that all economic theories are falsifiable and that irrefutable theories are scientifically sound. Figueroa combines the logically consistent aspects of Popperian and process epistemologies in his alpha-beta method to address the widespread problem of too-general empirical research methods used in economics. He argues that scientific rules can be applied to economics to make sense of society, but that they must address the complexity of reality as well as the simplicity of the abstract on which hard sciences can rely. Furthermore, because the alpha-beta method combines approaches to address the difficulties of scientifically analyzing complex society, it also extends to other social sciences that have historically relied on empirical methods. This groundbreaking Pivot is ideal for students and researchers dedicated to promoting the progress of scientific research in all social sciences.

Persistent Inequalities in Education

From the Peruvian peasant to the World Bank, education has been seen as the single most important element to end inequalities and poverty and provide not only true social mobility but also integration. We will show in Chapter 5 how the hope of national integration through education drove the Peruvian government’s social expenditure during the whole twentieth century. This chapter first documents the desire of marginal groups for education and confronts this with the reality: the data show persistent group inequalities in education and its rewards. Then we analyse and document the reasons why, with the aid of a model developed by Adolfo Figueroa. The chapter then concludes and reviews the argument through Chapters 2–4.

Economic Growth with Social Maladies

This chapter presents the basic empirical regularities of the capitalist economic growth process of the last decades. Then, the chapter summarizes the explanation given for the interrelations between income growth, income inequality, and biophysical degradation by the unified theory. This is done by presenting an evolutionary model of unified theory. The reader will thus learn not only about the structure of the unified theory, but also about how it explains reality, which will facilitate understanding of the next chapters. This chapter intends to make the whole book self-contained.

New Economic Principles for the Anthropocene Age

Since the end of World War II, the capitalist system has experienced rapid economic growth. Current generations only know a growing economy. A no-growth society is unknown. The arrival of the Anthropocene implies the end of the economic growth age. One of the new economic principles for the new age is zero-growth society. How would such a society function? The aim of this chapter is to present the new economic principles under which capitalism would function in the Anthropocene age.

Power Structure and Democracy

Market and democracy constitute the fundamental institutions of capitalism. Therefore, economic growth with social maladies found earlier as the outcomes of the economic process corresponds to democratic capitalism. This is certainly a paradox, which needs a scientific explanation. This chapter intends to supply such an explanation. To be sure, this chapter is not a philosophical or doctrinaire discussion of democracy (which is abundant), but a scientific one (which is scarce). It is not about what democracy ought to be; it is rather about what democracy is.