JBS Vol 17. Num 2. 2015 - The Subject and Numeracy: Economics and Development

This paper addresses two specific concepts underlying economic thinking that inform development studies and practice - methodological individualism and numeracy. Methodological individualism is the notion that economic analyses and models are based on voluntary individual choice-making by informed and rational subjects. This subject (agent) is then carried over to the aggregate economy to make national policy choices, with the caveat that there will be winners and losers for any economic change, and one group can compensate another. This paper shows that this is not a random process, but instead a systematic problem is present in that predictable beneficiaries exist, as do groups who bear the costs of development policies. Numeracy refers to both the numerical aptitude of the subject (agent) as development occurs, and the problem of using numerical measures for economic development, flattening out the complexity and nuance of inquiry and relevant conclusions in different contexts. Numerical indices attempting to capture economic success creates national hierarchies such that many developing countries find themselves to be given a low rank measure and feel compelled to follow policies that are considered to be efficacious globally, regardless of whether they are appropriate for a particular country or not. Although these arguments are general, examples from Bangladesh provide pertinent context.