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The Foundational Economy as a Cornerstone for a Social–Ecological Transformation

Author

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  • Richard Bärnthaler

    (Department of Socioeconomics, Institute for Multi-Level Governance and Development, Vienna University of Economics and Business, Welthandelsplatz 1/D4, 1020 Vienna, Austria)

  • Andreas Novy

    (Department of Socioeconomics, Institute for Multi-Level Governance and Development, Vienna University of Economics and Business, Welthandelsplatz 1/D4, 1020 Vienna, Austria)

  • Leonhard Plank

    (Department of Spatial Planning, Centre of Public Finance and Infrastructure Policy, Technical University of Vienna, Resselgasse 5/2/3, 1040 Vienna, Austria)

Abstract

This theoretical paper synthesises research on the foundational economy and its contribution to a social–ecological transformation. While foundational thinking offers rich concepts and policies to transition towards such transformation, it fails to grasp the systematic non-sustainability of capitalism. This weakness can be overcome by enriching contemporary foundational thinking with feminist and ecological economics. Whereas the feminist critique problematises foundational thinking’s focus on paid labour, the ecological critique targets Sen’s capability approach as a key inspiration of foundational thinking, arguing that a theory of human needs is better suited to conceptualise wellbeing within planetary boundaries. Based on this, we outline a novel schema of economic zones and discuss their differentiated contributions to the satisfaction of human needs. By privileging need satisfaction, such broadened foundational thinking demotes the tradable sector and rentier economy, thereby revaluating unpaid work as well as respecting ecological imperatives. This empowers new articulations of social and ecological struggles to improve living conditions in the short run, while having the potential in the long run to undermine capitalism from within.

Suggested Citation

  • Richard Bärnthaler & Andreas Novy & Leonhard Plank, 2021. "The Foundational Economy as a Cornerstone for a Social–Ecological Transformation," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10460-:d:639411
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    References listed on IDEAS

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    Cited by:

    1. Federica Viganò, 2023. "The Climate Financialization Trap: Claiming for Public Action," Sustainability, MDPI, vol. 15(6), pages 1-7, March.
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    3. Thomas SJ Smith, 2023. "Mapping complexity in deglobalisation: A typology of economic localisms from ‘hyper-localism’ to ‘strategic autonomy’," Local Economy, London South Bank University, vol. 38(3), pages 242-263, May.
    4. Bärnthaler, Richard & Gough, Ian, 2023. "Provisioning for sufficiency: envisaging production corridors," LSE Research Online Documents on Economics 119420, London School of Economics and Political Science, LSE Library.

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