Some of us who studied basic sciences struggle to accept economics as a science. Indeed, Paul Samuelson reportedly said, “Economics isn’t a science, it is an argument”. However, it is important to recognise the difference. Whilst physics is about universal laws of nature, economics is context dependent given human behaviours which it is meant to study can adapt to different contexts. In that framing, this new book ‘Decolonising Economics’ calls for a relook at the discipline that began during the colonial period which may not be relevant today.
“Its authors contend that the discipline has largely overlooked how colonialism, empire and unequal power shaped the development of modern economies and the economic theories used to explain them.
Decolonizing economics means rethinking how we understand economic development and inequality. Rather than explaining prosperity through technology, markets and scientific progress, it examines how colonization, resource extraction and exploited labour shaped today’s wealthy economies while contributing to underdevelopment elsewhere.
At its core, it’s about shifting away from an economy that benefits the elite to one that builds people’s capabilities.”
The book goes back to the origins of economic theory:
“Many foundational economic theories were developed by wealthy European men during periods of colonial expansion. Yet these ideas are often treated as universal principles rather than products of a particular historical context.
Eurocentric economic thought tends to position European economic development as the norm while presenting Indigenous and Global South economic systems as deviations. Decolonizing economics challenges assumptions within mainstream theory about choice, rationality and economic value.
For example, the concept of scarcity emphasizes that people must make choices because resources are limited. However, this can overlook how social and economic inequalities constrain choices. A bonded labourer may appear to have economic choices within a market framework, but coercion and exploitation mean those are not truly choices at all.
Decolonizing economics also challenges the assumption that wages reflect an individual’s contribution or value. How can this assumption account for the historically undervalued labour of essential workers, women and other marginalized groups?
Similarly, research on poverty and decision-making challenges the idea that people always act as fully informed and rational economic beings. Psychological stress associated with poverty can reduce people’s ability to process information and make effective decisions. That stress can leave them more vulnerable to complex contracts, fine print and information overload.
Decolonizing economics also calls for greater scrutiny of free trade theory, which has shaped global development policy. It was advanced by one of the wealthiest economists in history, David Ricardo. Yet many wealthy countries first industrialized through protectionist policies before promoting free trade abroad — a pattern one economist described as “kicking away the ladder.””
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