Can the principles of heterodox political economy explain its own re‐emergence and development?

Abstract

Purpose-This paper seeks to evaluate how some of the core general principles of heterodox political economy (HPE) can be applied to the issue of how HPE has managed to undergo resurgence and development over recent decades. Design/methodology/approach-Four major principles of heterodoxy are applied successively to this issue: (a) historical specificity; (b) contradiction; (c) heterogeneous agents and groups; and (d) circular and cumulative causation. Findings-These principles assist in comprehending how HPE is able to develop its own concepts, networks, publications, academic departments, teaching and policyrelevant material. Research Limitations/Implications-HPE has had considerable success in developing a conceptual apparatus, which helps explain the emergence of much of its edifice being developed in academic and policy circles. The performance of HPE has been impressive. Practical Implications-The conceptual apparatus of heterodoxy can be applied to real world situations; specifically a component of world history over especially the past forty years. Originality/value-This is the first time such a theme has been explored in the literature.

Heterodoxy in the classroom: the case of community economic development

“…I agree with Phillip Anthony O'Hara (2008, p. 274) who said that “heterodoxy exists primarily because of the core contradictions of capitalism, most notably the trend to destructive creation”. The very process of generating innovation and economic growth in context of capital mobility also generates throw away cities and other negative externalities.…”

“…Over the last several decades heterodox economics has gained a growing influence and become more conspicuous in the discipline of economics (Lee and Elsner, 2008; O'Hara, 2008). Different heterodox schools of thought have successfully challenged the mainstream economic tradition and their concepts and ideas are increasingly being applied in the classroom to help students better learn about real world problems.…”

The Global Securitized Subprime Market Crisis

“…This is where the principle of contradiction becomes relevant. Contradictions are opposing tendencies associated with institutional processes, which can variously be the source of movement as well as periodic instability and crises (see O'Hara 2000O'Hara , 2008aO'Hara , 2008b. The notion of contradiction is crucial for comprehending various opportunity costs between forces that have varying levels of power through time.…”

“…The principles of historical specificity, circular and cumulative causation, financial innovation and heterogeneous agents, contradiction, plus risk and uncertainty are utilized to examine the nature of the crisis. Based on O'Hara (2007aO'Hara ( , 2007bO'Hara ( , 2008aO'Hara ( , 2008bO'Hara ( , 2009 these principles are used to explain the historical genesis of the crisis, the interaction of multiple factors and variables, the role of financial innovation and different economic agents in the development of chains of bankruptcy, plus the importance of an uncertain environment and complexity problems.…”

Capital, Economic Crises, Institutions and History

“…The second thread is more fundamental, where heterodox political economy is seen as a mutation or variation of these combined schools, which gradually emerged through the 1990s, 2000s, and 2010s as a relatively unified, yet inclusive and opensystems, approach to social and economy problems, combining crucial concepts and themes from all these schools into a general frame of reference. This hybrid science of heterodox political economy is always in search of new, innovative methods, principles, and processes to help explain current problems in the world and ways in which these problems can be rectified through policy and social change (see O'Hara 2008O'Hara , 2012.…”