COC
 

Economic Rights and Economic Justice Theory

In 1976, the International Covenant on Economic, Social and Cultural Rights (ICESCR) entered into force. Despite its standing with the UN, economic, social and cultural rights have proven rather difficult to define, implement, and successfully advocate for. This marginalization is closely tied to the economic model which currently dominates economic discourse and the popular understanding of markets.

The economic model which governs mainstream discourse and dominates introductory economics textbooks has only recently gained ascendance. Early economists, like Adam Smith and Karl Marx, operated in the classical school of economics where the value of human labor was emphasized and a morality of economics argued in favor of securing basic livelihood.

Neoclassical economics came to the fore by the 19th century with an emphasis on positive economics and grounded in utilitarianism. In the neoclassical school, the individual utility (maximizing pleasure and minimizing pain) of the rational actor reigned supreme. The school of thought is marked by a distrust of government intervention, an emphasis on an open market and the prioritization of efficiency over equality. Inline with this thinking is the fundamental belief that changing the initial circumstances should only be done when such a change would improve the welfare of at least one person while the welfare of no one else declines (pareto improvement). The optimal situation then is when no such change is impossible (pareto optimality). As Mariama Williams (1998) notes, this belief is "a critical stumbling block in the path of economic and social rights since relying on this criterion would a priori preclude most activities of government to promote, fulfill and protect economic and social rights.

The 1930's saw a brief respite from the dominance of neoclassical economics with the rise of Keynesian economics (liberal economics) which theoretically legitimized the role of the government to stabilize and redistribute economic benefits. It was during this period, when the dominant Keynesian model provided an enabling environment for the discussion of rights, poverty alleviation and human development, that the human rights system was established.

However, problems with inflation and stagnation in the 1980's led to the resurgence of the neoclassical thinking in the form of the neoliberal model and the rights of the market again gained dominance over the rights of citizens. It is in this environment, where the neoliberal model dominates, that we as advocates for economic and social justice must find innovative and multi-faceted means of advancing the human rights agenda.

After more than 20 years of rule by the neoliberal model, the pendulum may be swinging in the other direction. As inequality grows in both developed and developing countries, poverty persists, and the global climate crisis comes to center stage, faith in the neoliberal liberal model and the resultant transnational global production systems is waning. The door is opening for human rights and social concerns to once again enter the economic debate.

For additional information on the issues raised above, please see Mariama Williams article, "Economic Rights and Economic Justice in Economic Theory and Policy: An Introductory Note."