Now is the time for Economics 2.0.

Economics, the way we know it must change. For 200 years and more after Adam Smith propounded the first theories of Economics, there may be a need to look beyond them. For the last 2 centuries, Economics as a science has been used to describe effort, need, productivity and transactions both at an individual and a national/global scale and this is still gaining relevance. Economic indicators have also often been the benchmark to imply societal development. It is not uncommon that a nation with higher per capita income is more developed and prosperous or the largest GDP states are the most advanced. However, in view of a few more variables today, the meanings of human/social development have become more complex than the economic constructs.

Two most important variables apart from transactional economics are:
· Effect of Climate change
· Holistic societal development

Economics discounts Climate and Environmental Factors
Widespread environmental changes will significantly alter the course of human history going forward. These changes pose clear and present danger in front of the states, citizens and their economies. Emissions and pollutant discharge are a direct function of the level of industrialization of economies. While it isn’t possible switching off the growth engines of the economy, the switch-over to environmentally safe and renewable energy sources will take another 20/30 years to take shape and have an impact. Reducing Carbon footprint is till now a very low scale exercise. Over and above this, is the debate on reduction of emissions in developed versus developing states.

Developmental economics or the present indices do not measure the impact of growth on environmental resources. Thus, the growth today can lead to environmental, climatic or socio economic risks tomorrow. The concept of GDP or economics based measurement is thus a failure in this regard.

Economics discounts parameters of Human and Societal development
Inequities within societies and states have existed forever in history, The current economics do not measure societal development parameters like pure water availability, food security, literacy and education, Infant Mortality rates and Child malnutrition and various other parameters. Economic development has been associated with resource exploitation. The best case in point is Oil, the lifeline of modern day economics.

The point of engaging economics, environment and human developmental issues is to hence build sustainability of progress and spread the fruits of development amongst people and states. There is a need to radically rethink Economics to address these grave issues.