The State of Economics, the State of the World

Abstract

This paper, based on the introductory remarks made at the two-day conference on “The State of the Economy, the State of the World,” is an idiosyncratic stocktaking of the trajectory of economics from Adam Smith to contemporary times, with special attention to the rise of development economics. Given the challenges faced by the global economy in recent times, and especially since 2008, it is time for a serious evaluation of economics for policymaking. The paper comments on some potential themes and ideas that motivated the conference and also formed the basis of discussions and debate. This is done keeping in mind the nature of knowledge engagement the World Bank Group is expected to have with the world.

Keywords: economic thought, development, welfare, equilibrium, policymaking

JEL Classification: A11, B10, B20, O10