ABSTRACT
The foundational economy is both a concept designed to rethink the character and purpose of contemporary economies and an approach to socio-economic development that focuses on providing everyday universal basics within planetary limits (see Universal Basic Services). It emphasizes that there is no single “economy”, but rather different economic zones, each with distinct rationales and forms of consumption (see Table 43.1). The foundational economy facilitates the often-collective consumption of daily essentials such as energy, electricity, water, and food, along with welfare-state services like health, education, and social housing. In addition to being essential for meeting human needs, foundational sectors differ from other sectors of the economy in two main ways: (i) consumption needs are predominantly delivered through infrastructures, networks, and branches, rather than through the purchase of individual commodities; and (ii) much is relatively sheltered from international competition.
