The Objectives of Genuine Democratic Economic Policy and their Interrelationships

In a previous article, I attempted to open a very provocative discussion on the «transition from standard theory to a genuine theory of economic policy» which I consider an inevitable choice for redirecting the somewhat erratic course of economic development in today's market societies, particularly in Latin America. Essentially, the proposal calls for a shift from the rigid normative and conceptual framework of standard economic policy, focused almost exclusively on the objective of macroeconomic stabilisation, to a broader and more comprehensive one that includes—in addition to the former— general welfare objectives related to economic growth, full employment, distributive equality, and environmental sustainability. In the present article, I want to devote particular attention to the topic announced in its title, a matter that is undoubtedly subject to harsh and virulent criticism from defenders and adherents of standard economic orthodoxy, who, by definition, reject any proposal for epistemic mutation of their theories, dogmas, and views. Now then, considering the novelty and rarity of this type of writing in economic literature, university texts, and specialized journalism, I believe it is highly pertinent to write this essay with a didactic and pedagogical approach so that, in addition to capturing the interest of my economist readers, I also broaden the discussion to include other social scientists who have much to contribute to the proposed normative framework that I will present below. The first section will be dedicated to describing concepts. Then, I will move on to configuring a conceptual model of the relationships between the objectives of economic policy. In the following section, I introduce the issue of conflict and harmonisation of economic policy objectives, which paves the way for examining the institutional consequences of the normative framework and the conceptual model as they are adopted and implemented in the real world. In a forthcoming article, I will address the instruments (policies, reforms, and other actions) of genuine democratic economic policy linked to each of these objectives, thus completing the trilogy of articles I intend to write for my Latin American and African readers.