Integrating Ethics with Economics: M.V. Nadkarni and Amartya Sen

M.V. Nadkarni is a well-known personality in economics, who extensively quotes Vedic Literature, Mahabharata and Bhagavad Gita, supporting the indigenous perspectives, which promotes a sensible blend of ethics and action. He strongly advocates that the basis of economic activities is morals and ethics, devoid of which the structure of the economy fails. The policies formulated might be partial and state might act as a tool of the bourgeoisie if long-term perspectives of the state is not taken into accord. Professor Nadkarni emphasizes that the separation of economics from ethics can occur at three levels: (i) at the level of actual economic behaviour of individuals, enterprises and institutions; (ii) at the level of economic policies of the state; and, (iii) at the level of economic analysis by economists. While Professor Amartya Sen too believes in the importance of considering ethics in economic decision making, he differs from Professor Nadkarni on a duty-centred approach to ethics. Sen is particularly uncomfortable with the narrow view of human motivation in neoclassical ' positive' economics, which assumes that maximisation of self-interest is not only rational, but is also the only motivation governing economic behaviour, and that this also governs actual behaviour. Sen believes that economics should be guided by a commitment to promoting human well-being and ensuring that economic outcomes are just and equitable for all members of society.