Pancasila Economics from a Historical Perspective

Pancasila, Indonesia's guiding philosophy established in 1945, outlines five core principles. These principles serve as a compass for the nation's core values, not an economic blueprint. Enshrined in the constitution's preamble are: A belief in the One and Only God, just and civilised humanity, the unity of Indonesia, and democratic life led by wisdom of thoughts in deliberation amongst representatives of the people, and achieving social justice for all the people of Indonesia.

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Pancasila Economics - Where does it stand?

The idea of Pancasila Economics is unique in the history of economic thought. Eventually, not many countries can pride themselves with the development of a distinct national economic model motivated by a country’s very specific historical and cultural context. For comparison, both classical economic liberalism and socialism were not developed as country-specific concepts.

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Does Pancasila Economics Have a Relative in the History of Economic Thought?

Throughout history, economic thinkers have proposed a variety of ideas. These ideas can be seen as stages, progressing from Mercantilism to classical liberalism, then socialism, and finally Keynesianism. Each stage roughly corresponds to a major historical event: imperialism, the Industrial Revolution, globalization, and the Great Depression.

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Pancasila Economic Inspirations from the Nature of the Human in Economic Philosophies

The human being is characterized by a gotong royong (mutual assistance) personality. Taking mutual assistance literally and applying it to extremely stylized laissez-faire and socialist economics, a gotong royong personality does not fit in either idea. Why?

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What is the Meaning of Justice in Pancasila Economics

Pancasila, Indonesia's guiding ideology, prominently features the concept of justice. Principle Two emphasizes the establishment of a "just and civilized" society, while Principle Five advocates for the attainment of "social justice." However, the terms "justice" and particularly "social justice" are frequently used yet often lack a clear definition.

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