Thursday, April 14, 2016

Economic Base Analysis

Interesting to me that there is this economic theory called "economic base analysis" which essentially sees an economy divided into two two sectors -- Basic (Export) and Non-Basic (local) sectors.

The basic sector being defined as :
  • Consists of activities that bring money into the local economy from the outside
  • Consists of activities that meet external demand
  • Consists of activities dependent on factors external to the local economy


Note how nicely that matches the concept of יסוד (base) being a function of relationship with the external world.

Taking it a step further, according to EBA the local sector only thrives as a result of the Base sector. Put in our terms a person's internal self only thrives insofar as his connection and relationship to the outside world.





T