Foundations of Human-centered Economics Garry Jacobs CEO, World Academy of Art & Science CEO, World University Consortium Vice President, The Mother’s Service Society (India) Dubrovnik, February 1-3, 2017

Untapped Social Potential Unmet Needs Underutilized Resources 1.75 billion (25%) living in multidimensional poverty Global financial assets of $250 trillion, from $12 trillion in 1980 Food, clothes, housing for 3 billion people living on < $2.50 a day Global excess production capacity & life-saving technologies Need for education, medical care, social services, environment 200M unemployment globally. 1-2 billion under-employed Growing shortage of natural resources Methods to raise energy & resource productivity & reduce waste

Core Aspects of a Comprehensive Theory Production Resources & Ecology Markets & Trade Technology & Science Peace & Political Unity Education Law & Governance Distribution of Social Power Transport & Communication Values of Civilization and Culture Money, Banking & Finance Individuality & Leadership Social Organization, Management, Trust Ways of Thinking & Construction of Knowledge

Economy as a Social Organization Modern economy is a social institution founded on an ever-expanding organization of human relationships in space & time Social institutions are created to serve society. Like democracy, the value of economy depends on the guiding values and principles on which it is founded Society’s purpose is to maximize the economic security, welfare and well-being of all its citizens which is essential to achieve and maintain peace, social stability, sustainable prosperity, human dignity and the fullest realization of human potentials for individuals, societies and humanity as a whole.

Society Society is not merely a machine or complex, mechanistic system subject to mechanical laws of Nature. Economics should be based on an integrated conception of society as a complex, conscious, integrated living organism undergoing a continuous process of evolution. Society includes local, national and global dimensions that are all interconnected and interdependent with one another. Best analogy for society is the integration of the human body with emotional-mental consciousness and environment.

Value-based Social Science Beware of misguided naturalism in the social sciences. -- Karl Popper The laws of economy are human-made and subject to choice. All social science is value-based. The values should be made explicit. Current theories value growth, money, markets, systems and rules. Human-centered economics should be based on values of freedom, dignity, security, welfare, well-being, sustainability and evolution.

Interdisciplinarity Economy is an open system related to, interacting with and mutually interdependent on political, legal, technological, social, cultural, psychological and ecological dimensions of society. Therefore economic science must make explicit the dependencies and interactions between economy and these other spheres of humanity’s social existence.

Trans-disciplinarity Social science should be founded on fundamental social processes common to all human activity Evolution of conscious awareness & intention Implementation of values Conversion of human energy into social power for accomplishment Capacity for self-organization Development of complex relationships and network effects Emergence of concealed evolutionary potentials

Social Power Society is an infinite reservoir of social potential which is the source and driving force for all social development & accomplishment No society fully harnesses and utilizes the potential social power Social potential is converted into social power by the generation and channeling of human energies through social structures The distribution and exercise of power in society is a critical determinant of how economic systems function and who benefits. The more equitable the distribution, the greater the generation of power Social power expresses as the quantum of power individuals can draw from the society as permitted and supported by formal rights, laws, rules and social systems and informal institutions, customs, usage & values

Integration of Objective & Subjective Dimensions Social science needs to reconcile and reunify objective and subjective dimensions of reality and recognize the ultimate primacy of human aspirations, consciousness & values. Revolution of Rising Expectations Concept of Resources Value of money is founded on trust and confidence Trust, faith, confidence Resources

Role of the Individual In human science, the individual is not merely a single unit of a uniform type like atoms and molecules. Human individuals are characterized by both common and unique characteristics, both subconscious habits and conscious choice. The individual as leader, pioneer, inventor, artist and original thinker is the catalyst for all social innovation, creativity & evolution. Development of individuality and development of society go hand in hand. Society seeks more effective ways to foster the fullest development of individuality in harmony with collective welfare & well-being.

Evolution has a direction Society evolves by increasing levels of consciousness and organization directed in pursuit of universal values of freedom, human dignity, equality, interrelationship, innovation, creativity and individuality.

Human-Centered Economics The development and creative expression of human aspirations, energies and capacities – individual and collective – constitute the driving force and ultimate determinant of the direction and characters of economic development and human well-being. Individual Freedom, Social Equity & Ecological Sustainability are core values of the process.