The word "economics" itself reminds us that economic thought transcends linguistic and cultural boundaries. Derived from Ancient Greek, "economics" combines "oikos" (οἶκος), meaning "household" or "home," with "nomos" (νόμος), meaning "custom" or "law." Together as "oikonomia" (οἰκονομία), it originally meant "household management" or "rules of the household."
Aristotle distinguished "oikonomia" from "chrematistics" (the art of acquiring wealth), highlighting that economic thinking has always involved ethical considerations about resource allocation—not just mechanical market functions. This linguistic origin story reminds us that economics as a discipline was born from practical concerns about managing limited resources within social structures.
The Rich Tapestry of Global Economic Thought
Just as the term "economics" itself has non-English roots, the discipline continues to be enriched by concepts and terminology from cultures around the world. These terms often capture economic realities or approaches that might not be fully expressed in English. By exploring these non-English economic terms, we gain not only linguistic knowledge but also deeper insights into how different societies conceptualize economic relationships, challenges, and solutions.
While economics textbooks tend to present theories as universal, these culturally-specific terms remind us that economic thinking is shaped by social context. They offer valuable alternative perspectives that can help IB Economics students develop more nuanced analyses and stand out in their assessments.
Common Non-English Terms in IB Economics
While studying economics, you'll frequently encounter these five non-English terms that have become fundamental to economic discourse:
Laissez-faire (French: "let do" or "leave alone") - A policy approach favoring minimal government intervention in markets.
Ceteris paribus (Latin: "all other things being equal") - The analytical method of isolating variables by assuming all other factors remain constant.
Ad valorem (Latin: "according to value") - Taxes calculated as a percentage of the value of goods or services.
Entrepreneur (French) - A person who organizes and manages a business venture, assuming its risks.
Per capita (Latin: "per head") - Economic statistics divided by population size to show averages per person.
Expanding Economic Understanding Through Cultural Lenses
Beyond these common terms lie rich cultural concepts that can deepen your economic analysis. Here are five of my personal favorites that reveal how different cultures conceptualize economic relationships and challenges:
Guanxi (关系): Networks and Relationship Economics
Origin: Chinese concept central to business and social interactions VIDEO
Application in IB Economics: When analyzing market structures or business behavior, "guanxi" offers a perspective that challenges Western economic models based purely on transactional relationships.
For example, when examining why certain markets in East Asia don't follow predicted competitive patterns, understanding guanxi networks helps explain market entry barriers that aren't visible in balance sheets or regulatory frameworks. This concept connects directly to market failure topics in microeconomics and the "barriers to development" section in the global economy unit.
In class discussions, consider questions like: "How might guanxi networks affect perfect competition assumptions?" or "In what ways does relationship-based economic activity challenge mainstream economic efficiency models?"
Jugaad (जुगाड़): Frugal Innovation Under Constraints
Origin: Hindi term for innovative fixing or workaround using limited resources. VIDEO
Application in IB Economics: Jugaad thinking offers a fascinating lens for examining entrepreneurship, production, and economic development.
When studying production possibilities frontiers, jugaad challenges assumptions about fixed resource requirements. A jugaad approach suggests that innovation can shift production curves not just through technological advancement but through creative recombination of existing resources.
In development economics, jugaad explains how economies with capital constraints can still achieve growth through alternative innovation pathways. This connects directly to "strategies for economic growth and development" in the global economy unit.
Ask yourself: "How might jugaad innovation affect traditional economic development models?" or "Does jugaad suggest alternative metrics for measuring entrepreneurial success beyond productivity?"
Karoshi (過労死): The Economics of Overwork
Origin: Japanese term meaning "death from overwork" VIDEO
Application in IB Economics: Karoshi provides a powerful framework for examining the limits of labor productivity and the social costs of economic growth.
In macroeconomics, when studying economic growth and welfare, karoshi highlights how GDP metrics fail to capture negative externalities in labor markets. This concept challenges the assumption that increasing working hours necessarily increases economic output in the long run.
Karoshi also connects to labor market policies in both micro and macroeconomics, raising questions about the optimal regulation of working conditions and whether market forces alone can establish sustainable work patterns.
Consider: "How might accounting for karoshi affect cost-benefit analyses of economic growth policies?" or "What does the existence of karoshi suggest about labor market equilibrium models?"
Ubuntu (Nguni Bantu): Communal Economics
Origin: Nguni Bantu term meaning "humanity" or "I am because we are" VIDEO
Application in IB Economics: Ubuntu philosophy offers an alternative framework to individualistic utility maximization that dominates conventional economic theory.
When examining consumer behavior in microeconomics, ubuntu suggests that utility functions might be interdependent, with individual welfare directly tied to community welfare. This challenges fundamental assumptions about rational self-interest that underpin demand theory.
In development economics, ubuntu provides a lens for evaluating alternative economic systems and institutions that might prioritize communal welfare over individual wealth accumulation.
Ask: "How might economic models change if we incorporated ubuntu principles into utility functions?" or "What types of economic institutions might emerge from ubuntu principles versus individualistic market principles?"
Chaebol (재벌): Economic Concentration and Industrial Policy
Origin: Korean term for large, family-controlled business conglomerates VIDEO
Application in IB Economics: Chaebol provides an excellent case study for examining industrial organization, market structure, and government-business relationships.
In microeconomics, when studying market structures and competition, chaebols offer insights into how concentrated economic power affects market efficiency. Their structure challenges Western notions of corporate governance and competition policy, showing how family ownership combined with governmental support can create distinctive market dynamics.
When analyzing trade and development in the global economy unit, the role of chaebols in South Korea's export-oriented development model offers a compelling case study. This connects directly to "economic growth and development strategies" by highlighting how targeted industrial policy focusing on large conglomerates can accelerate industrialization.
Consider: "How does the chaebol model challenge assumptions about monopolistic competition and oligopoly?" or "To what extent can the chaebol model of development be replicated in other developing economies?"
By incorporating these cultural concepts into your economic analysis, you'll develop a more nuanced understanding of how economic principles operate across different societies and contexts—a valuable skill for excelling in IB Economics assessments and developing as a global economic thinker.
Non-English Economics Terms Glossary
Alphabetical Reference List
Arbitrage (French): The practice of taking advantage of price differences in different markets for the same asset.
Autarky (Greek: "self-sufficiency"): An economic system of self-sufficiency where a country attempts to limit its international trade.
Baksheesh (Persian/Arabic): A small sum of money given as alms, a tip, or a bribe, highlighting informal economic transactions.
Caveat emptor (Latin): "Let the buyer beware" - principle that buyers are responsible for checking quality before purchase.
Dirigisme (French): Economic system where the state exerts strong directive influence.
Ex ante/Ex post (Latin): "Before the event"/"After the event" - distinguishing between expected and actual outcomes.
Fika (Swedish): Coffee break practice that demonstrates the economic value of workplace social capital and well-being. IN THE NEWS
Gottvertrauen (German: "trust in God"): In economics, it refers to confidence in market forces without evidence.
Hukou (Chinese): Household registration system affecting labor mobility and development.
Hygge (Danish): Concept of coziness and comfort that influences consumer behavior and marketing.
Kaizen (Japanese): "Continuous improvement" philosophy in business operations.
Kanban (Japanese): "Signboard" or "billboard" - inventory control system to improve manufacturing efficiency.
Keiretsu (Japanese): Groups of enterprises with interlocking business relationships and shareholdings.
Mita (Quechua): Andean system of communal work for a collective benefit, alternative to wage labor systems.
Mittelstand (German): Small and medium-sized enterprises forming the backbone of Germany's economy.
Nemawashi (Japanese): Process of building consensus before making decisions.
Noblesse oblige (French): The concept that wealth and privilege come with social responsibilities.
Potlatch (Chinook): Gift-giving feast practicing among indigenous peoples of the Pacific Northwest that redistributes wealth.
Prima facie (Latin): "At first sight" - evidence that appears sufficient without further investigation.
Quid pro quo (Latin): "Something for something" - an exchange of goods, services, or favors.
Realpolitik (German): Political or economic decisions based on practical rather than ideological considerations.
Schadenfreude (German): Pleasure derived from another person's misfortune, relevant to behavioral economics.
Status quo (Latin): "The existing state of affairs" - current economic conditions or systems.
Tequio (Náhuatl): Unpaid community work in Mexican indigenous communities, an alternative economic organization system.
Volkswirtschaft (German): "People's economy" or "national economy" - macroeconomics from a national perspective.
Wasta (Arabic): Using connections and influence to get things done, similar to guanxi.
Miranda Bryant
Swaminathan S Anklesaria Aiyar
Lizzi C. Lee
