The economy as an open system: An institutionalist framework for economic development

Abstract

The main purpose of this chapter is to set the stage for the rest of this volume by describing the economic system in a way consistent with original institutionalist principles, principles that prescribe an open system view of economies. The chapter emphasizes the ways in which technology, nature, and culture transact with the economic process. From this view the terms sustainability and development take on broader meanings. Strict sustainability requires adherence not only to environmental criteria but also to technological and social criteria. Development implies that the socioeconomic system changes in the direction of improved adherence to social criteria broadly defined. © 2009 Springer-Verlag New York.