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Transformational Economics- An Overview

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Transformational Economics- An Overview

Transformational economics is a branch of economics that focuses on how to redesign economic systems and institutions to be more sustainable, equitable, and socially just. Transformational economics looks beyond traditional economic measures like GDP to prioritize human well-being, ecological sustainability, and social justice. It critiques mainstream, neoclassical economics for overemphasizing growth, profit maximization, and individualism and calls for a more holistic, systems-based view. It argues current capitalist systems are extractive and exploitative and advocates major reforms to market structures, property rights, corporate governance, and globalization. It Supports de growth of overdeveloped countries and calls for selective, strategic growth in developing countries to meet basic needs. It promotes alternative economic models like solidarity economics, cooperative economics, participatory economics, and ecological economics and endorses new measures of progress like the Genuine Progress Indicator that accounts for social costs. It advocates redistribution of wealth and power and promotes workplace democracy, universal basic income, and community wealth building.

In practice, transformational economics aims to reshape economic policy, business practices, consumer behaviors, and societal values. It has informed new economic frameworks like doughnut economics and new ways of organizing like platform cooperatives. However, transforming current systems remains an ongoing challenge.

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