The Twin Challenges of Our Times
The most important topics of the 21st century are economic inequality and climate change. Their influence does not concern a particular region or economy. The two require urgent yet wise solutions that incorporate theory with actionable policy. Green finance is a novel approach in this complex landscape, offering a potentially effective way to mitigate the risks posed by climate change while advancing equity.
This article examines key economic theories and policy frameworks that address these issues. It introduces how Chanakya University is preparing students to tackle them through its future-ready MA in Economics program.
Economic Inequality: The Persistent Divide
Economic inequality is nothing new. The classical economists believed that the market was very efficient when the state was left to a minimum. However, contemporary economists, such as Thomas Piketty, have demonstrated the effects of the ability of returns on capital to increase faster than economic growth, contributing to worsening inequality.
This means that the wealthiest segment of the population is the richest 1% of the world’s population, which controls almost 45% of the wealth. The Gini coefficients are greater than 0.50 in most economies, indicating significant disparity.
Policy solutions include:
- Progressive taxation
- Universal Basic Income (UBI)
- Enhanced public investment in education and healthcare
Keynesian and modern heterodox economic approaches advocate for greater government intervention to redistribute wealth and promote inclusive growth.
Climate Change: An Economic Externality
A case in point of market failure is global warming. Market prices do not reflect the actual cost of carbon emissions, thereby contributing to the over-exploitation of the environment. Economists suggest Pigouvian taxes, carbon pricing and cap-and-trade to fix this failure.
Key facts:
- Global CO2 emissions stand at ~36 billion tons annually
- Fossil fuel subsidies cost $5 trillion worldwide.
- A carbon price of $40–100 per ton could cut emissions by 25–40% by 2030
Scandinavian countries have implemented successful carbon taxes, while the EU has adopted the Emissions Trading System (ETS) to regulate emissions. Investing in green infrastructure yields strong GDP multipliers and long-term resilience.
Green Finance: Funding the Future
Green finance funds sustainable projects that benefit the environment. It incorporates green bonds, ESG investments, and sustainability-linked loans. Even India has been contributing over $10 billion to the global green bonds market, reaching $1 trillion in 2023.
Green finance is not equal to financing renewable energy projects. It enshrines sustainability into the genes of financial decision-making. It also offers an opportunity for developing countries to fund the transition without straining their pockets too much.
Chanakya University: A Future-Ready Vision
Chanakya University is a newly established university in Bengaluru, positioning itself among the top private universities in India. The university is established on the foundation of both India’s civilizational values and global excellence, as embodied in the pursuit and application of the latest curricula worldwide, alongside the integration of Indic knowledge with the most modern global curricula.
Its MA in Economics degree course is the one that will address issues such as inequality and climate head-on. The program is both research-intensive and forward-looking, and based on ethical economic models.
Program highlights include:
- Courses in climate economics, green finance, and inequality
- Emphasis on data analysis, simulation, and gaming methods
- Integration of traditional Indian economic thought, including the Arthashastra
- Strong focus on real-world policy and sustainability
The Centre for Sustainable Economics at Chanakya University supports faculty and student research in these key areas. It serves as a hub for intellectual inquiry and practical policy solutions.
Bridging Undergraduate to Postgraduate Success
Students with a background in Bachelor of Arts in Economics, BA Hons Political Science, or BA International Relations will find the MA Economics at Chanakya a natural fit.
The BA Economics syllabus at Chanakya lays a strong foundation in theory and analytics, while also exploring the topics of ethics and sustainability.
or students researching BA Economics scope, the future includes roles in:
- Public policy
- International development
- ESG analysis
- Research think tanks
- Financial consulting
The transition from undergraduate to postgraduate studies is seamless, enriching students’ critical thinking and practical skills.
Chanakya’s Educational Philosophy
The model of the trinity has influenced Chanakya University: Jnana (wisdom), Ichha (will), and Kriya (action). The university embraces the NEP 2020 framework and encourages:
- Multidisciplinary learning
- Ethical leadership
- Global citizenship
It is one of the universities to watch which are changing the face of India due to its international collaborations, a known faculty, and a rich campus in Bengaluru.
In Summary: A World-Class Economics Program for the 21st Century
Economists should not just be number crunchers in a world where AI, digital economies, and environmental emergencies are on the agenda. They must be problem solvers, moral reasoners, and global citizens.
The MA in Economics offered by Chanakya University prepares students to dominate this environment. It provides a future-proof education with an emphasis on inequality, climate change and green finance.If you’re exploring programs with a strong BA economics syllabus, wide BA economics scope, and progression from Bachelor of Arts in Economics or related fields like BA Hons Political Science or BA International Relations, Chanakya University is your ideal next step.