Does Systematic Recordkeeping Contribute to Human Development?
6 Pages Posted: 26 Mar 2011 Last revised: 4 Apr 2012
Date Written: March 25, 2011
Recordkeeping has some positive elements which are useful for human development. Complicated economy exceeds a limit of memory capacity of human brain, and it inevitably increases the role of recordkeeping. Human’s bounded rationalities demand a systematic recordkeeping that composed by the simple aggregation rule to recognize economic activity. This paper includes three perspectives: (1) evolutionary history of recordkeeping and economy, (2) nature of recordkeeping information system, and (3) human development achieved by making use of recordkeeping. The opportunity of transactions with strange person developed bookkeeping. In environment of uncertainty, human saves one’s resources by rule-based behavior. Recordkeeping retains economic activity in correct cooperation with others. As a result, those elements will be developed economic structure. Recordkeeping was appeared by a limit of memory capacity of human brain. Such recordkeeping makes trust and reciprocity by coordination function. Furthermore, book-keeping can best be understood such that the reification which quantity mind of human.
Keywords: human development, recordkeeping, double entry book-keeping, external memory, human’s brain, coordination, bounded rationality
JEL Classification: M41, N80, B14, B24
Suggested Citation: Suggested Citation