I - Introduction

Abstract

This chapter provides an overview of economic theories and policies, which operate in a constantly changing context. If economic theories and policies do not adapt to these changes, the results could be disruptive and might be disastrous. However, one must keep in mind that economic policies that may have been thoroughly valid in the context in which they were originated are themselves responsible for not only economic but also social and political change. The extent of the novelty depends on the degree of novelty in the economic policies. A change from a plural, free-enterprise economic system to one of monolithic public ownership and management creates such fundamental transformations that the human situation is radically different and is clearly seen to be so. In terms of economic theories and policies, these societies have been static, and the economic theories and policies inaugurated at the beginning of the period have not changed but have rather preserved these societies in their deep-freeze. It may be that the world's people face a future of increasing chaos and disruption, with a substantial recession from the levels of economic well-being, the degree of political stability, and the relative assurance of national and individual security that have recently been experienced.