1. World I
Module V
V. NEUROECONOMICS
Prof. Francisco De Paula

2. V. NEUROECONOMICS
The problems of neediness and poverty and the economic battle
between classes and nations are a result of nothing other than
an alarming disorder, an unnecessary and transitory one. Since
the Western world already posses the techniques and resources
it needs, if we only could create the organization necessary to use
them we could reduce the economic problem that presently
reduces our moral material energy to a secondary importance…
In this way… the day is not far in which the economic problem
will occupy the last row of seats, where it belongs … The problems
-the problems of life and human relations, of creating, of conduct
and of religion.
J.M. KEYNES

3. Science Economy
• Science economy is the discipline
which studies, describes, models and
also determines the tendencies and
relation regarding the production and
trade of man’s scarcer resources
within the framework of the market’s
supply and demand.
• The phenomena regarding markets –
such as trade, scarcity, diversity in
natural resources or man’s conduct
toward technology- are not the only
elements that determine economy’s
behavior in society .
• Those emanating from the essence
of our culture are the ones which
ultimately dictate its development.

4. Economy and new civilization
• Economy was a product and a
consequence of the parallel history
of our insecurity and subordination
(neuroeconomy).
• In the future, its structure will have
to be reorganized as part of an
imaginary project for a new
civilization.
• The relationship between man and
his real need for producing
satisfying items and between
production itself, and the needs
arbitrarily created by the growth of
financial institutions evolved parallel
to our culture of the concentration
of power and subordination.

5. Man’s true economic needs
Financial Institutions:
• These financial institutions ended up being artificially
speculative and subject to the absurd notion of “growth” that
they themselves invented.
• They eventually ceased to have any relationship to their initial
aim, man’s true economic needs.

6. Intelligent options: new economic culture
• The academic creativity of those who in the future will be
responsible for the course taken by economics, will have to
come up with intelligent options to solve the outstanding evils
of our time, will not really differ from the various options
offered in the past as long as the political mold of
subordination and concentration of power that originally
created them is not plainly recognized.
• If it were recognized, they could be substituted –in the light of
a new economic culture- by the human variables of non-
subordination, decentralization in the administration of power
and, certainly and above all, the constantly present and visible
conscience of economy’s political nature.

7. International Operation
• Today, in spite of the growing tendency
toward economic independence, we often
observe that national economies
consistently refuse to participate in
international operation while defending the
basis of their competitive advantages and
subordinating short-term local interest to
long-term plans that could benefit the
world’s populace.

8. State-protected economies
• State-protected economies led
international economic activity during this
century.
• Were originally created to regulate the
economic excesses of the hegemonies we
inherited from the 19th century.
• Did not successfully modify the status quo
in the international division of labor and in
the asymmetric North-South relationship
during colonialism.

9. Impoverishment of needy countries
• It created the phenomenon of trading
manufactured goods of industrial societies at
excessively high prices for raw materials coming
from undeveloped countries at extremely low
prices, thus furthering the impoverishment of
needy countries in debt.
• This became an accepted habit in world
economics, it caused underdeveloped economies
to boost their debt geometrically and making
them increasingly dependent.

10. Global phenomenon
• The generalized practice of politicizing
the State’s economy in terms of trade,
finance, and productions is a global
phenomenon that will remain a part of
man’s life, slowly transcending
geographic frontiers and causing an
increase in the political regionalization
of economies clearly seen in the recent
integration of common markets, such as
the European Community, the creation
of a cartel of producers, like the OPEP,
and the grouping of countries according
to the problems they share and their
level of development.

11. International multilateral politics
• A great contradiction with this, is
the parallel development of
market’s economic
interdependence and the
growing political participation of
governments and governmental
associations in economics has
inevitably taken the nation and
regional or bilateral economic
politics of various countries into
the field of international
multilateral politics.
• For the first time in history, there
is real possibility for the advent
of achieving a global conscience
of our true economic situation,

12. Concerns for humanity today
• The most pressing concerns for humanity today in terms
of our economic culture is
– the incompatibility between imminent danger and risk
that underlies the economic model presently accepted
by humanity,
– a limitless growth –growth for its own sake that is
analogous to the notion of progress-, and
– the obvious, limited capacity of our planet’s resources
and its exploitation –in spite of the defense of the
efficiency of technology and production.

13. Exponential destruction of our environment
• Is, by its own merit, a self-
propelled form of exponential
destruction of our environment.
• It is exponential in the sense that
man submitted the indicator of his
economic growth to the success
of what he has come to call
progress –which actually implies
a considerable dose of an
unconscious search and endless
and intolerable logarithmic need
to exploit natural resources.

14. Global initiative
• In the possible and eventual
context of a global initiative to
revise the variables on which
our economic culture was
constructed, we will necessarily
have to become subordinate, to
a harmonious relationship of
equilibrium that rises between
man’s consumerist needs and
those which are truly
indispensable for his well being
and the orderly growth of his
economy.

15. Consensus agreement and
international co-habitation
• We need now a unified
and responsible
consensus agreement that
can originate a new holistic
order of international co-
habitation.
• This order could guarantee
the integration of the
environment and,
therefore, our future
transcendence.