Volume 22, 2008
Philosophy of Economics
Aleksandr V. Gevorkyan
Pages 61-69
Innovative Fiscal Policy
Dialectics of Philosophic and Economic Identity
The article uncovers an inherent link between philosophy and political economy. Application of the dialectical analytical framework to economics opens up distinctly innovative opportunities in social policy and theoretical advancements. Evolutionary understanding of a phenomenon in its totality rather than its break up into seemingly unrelated bits is crucial. Such analysis is capable of offering an all encompassing scientific explanation of the social and economic transformations taking place in modern times. To ensure sustained and socially fair growth, a proactive fiscal involvement is called upon in the areas of a)
infrastructure, b) human capital [i.e. education and healthcare] and c) labor migration. Innovative approaches to fiscal policy focus on Infrastructure Development Fund, Strategic Learning Systems, Migration Development Bank, involvement of the Diaspora mechanism and Sovereign Diaspora Bond program [managed via
State–Diaspora Supervisory Boards] to support developmental initiatives. A policy prescription cannot be a “one-fits-all measure.” Considerations of individuality of country specific development patterns as well as the need for understanding history and evolution of the economy, i.e. society, evolve in the dialectical analysis of
philosophic and economic identity of the totality of social change. This prompts innovative fiscal policy in adequate balance with monetary policy and other development tools.