Economics for true human development – future directions

Abstract

PurposeThe purpose of this paper is to show the limitations and inadequacies of the “Homo Economicus” model of human behaviour in terms of promoting human development and to outline directions for economics to promote “true human development”.Design/methodology/approachThe paper first discusses the concept of “Homo Economicus” and the criticisms of this model. It then explains the ladder of human development as propounded by Bhagawan Sri Sathya Sai Baba. The paper compares the “Homo Economicus” model with this ladder of human development. The economic philosophy of Bhagawan Sri Sathya Sai Baba is then explained to show the proper way ahead. Finally the paper gives future directions for economics to aid in “true human development”.FindingsThe paper finds that the “Homo Economicus” model of human behaviour is inadequate and needs to be substituted with a broader framework. The economic philosophy of Bhagawan Sri Sathya Sai Baba gives clear directions to develop this broader framework.Practical implicationsThe paper has practical implications in terms of understanding human development in the proper perspective and the steps that must be taken to move in this direction.Originality/valueThe paper compares the “Homo Economicus” model with the ladder of human development as outlined by Bhagawan Sri Sathya Sai Baba. The paper is also original because it gives future directions based on the economic philosophy of Bhagawan Sri Sathya Sai Baba.