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The First Prague Workshop On Futures Studies Methodology CESES, Charles University, Prague September 16-18, 200 4 Design of Holistic Economics for a Global World Ivan Klinec Institute for Forecasting Slovak Academy of Sciences Industrial Age Economics Mechanistic Paradigm

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design of holistic economics for a global world

The First Prague Workshop On Futures Studies Methodology

CESES, Charles University, Prague

September 16-18, 2004

Design of Holistic Economics for a Global World

Ivan Klinec

Institute for Forecasting

Slovak Academy of Sciences

holistic economics
Industrial Age Economics

Mechanistic Paradigm

Economic Theory as Ideology

Information Age Economics

Holistic Paradigm

Plurality of Economic Theories

Holistic Economics
new economic theories
New Economic Theories
  • New Economics
  • Humanistic Economics
  • Real-Life Economics
  • Bioeconomics
  • Biological Economics
  • Green Economics
  • Steady-State Economics
  • Geonomics
  • Network Economics
holistic methodologies and approaches
Holistic Methodologies and Approaches
  • Dissipative Structures – Ilya Prigogine
  • Implicated Order and Holomovement – David Bohm
  • Creative Destruction – Joseph Schumpeter
  • System Approach – Fritjof Capra
  • Entropy Law – Nicholas Georgescu-Roegen
  • Networking – John Arquilla, David Ronfeldt, Jessica Lipnack, Jeffrey Stamps
  • Network-Centric Organization – Arthur Cebrowski, John Garstka
  • Swarming – Kevin Kelly, John Arquilla, David Ronfeldt
  • General Semantics – Alfred Korzybski
  • Hidden Civilization Code – Alvin Toffler
  • Information Theory of Value – John Naisbitt
holistic economics5
Holistic Economics
  • Economy as Open Subsystem of Higher Systems – Society, Nature, Universe
  • Economy as Undivided Whole
  • Economy as Implicated Order and Globalization Process as Holomovement
  • Economics as Map, Economic Theories as Partial Maps of Economic Reality
  • Irreversibility of Economic Processes
  • Economy as Dynamic Organism
holistic economics6
Holistic Economics
  • Economic Process as Process of Creative Destruction
  • Implementation of Concept of Entropy into Economic Theory
  • Information as In-Formational and Structure Creating Factor in Economy
  • Information Theory of Value
  • Economy as Dissipative Structure
  • Productive Factors as Civilization Attractors
  • Laws of Economy same as Laws of Nature and Universe
  • Renewing the Original Significance of Economy as Householding
economy as open subsystem
Economy as Open Subsystem
  • Economy is open subsystem and part of higher systems as are the society, Nature and Universe
  • Laws of Economy are based on laws of Nature and Universe
economy as undivided whole
Economy as Undivided Whole
  • Economy is one undivide whole
  • Each part of economy on every levels – global, national, local – is interconnected with all other parts
  • Development of global world economy is interconnected with the development of all national and regional economies
economy as implicated order
Economy as Implicated Order
  • Economy is sort of implicated order
  • Hidden code of civilization is sort of implicated order
  • Form, structure and principles of national economies are form of explicated order
  • Globalization process is sort holomovement
economics as map
Economics as Map
  • Economics is map
  • Economics is not economy
  • Economic theories are partial maps of economic reality
  • All economic theories are limited in time, space and purpose
  • No economic theory is possible to be absolute in any time and any space
irreversibility of economic processes
Irreversibility of Economic Processes
  • Economic processes are basicly irreversible
  • Economy is dynamic organism not a static sort of machine
  • Economy is transformated through the processes of Creative Destruction
  • Creative Destruction is permanent process of destruction and renovation of economic equillibrium every time on new level
entropy as fundamental concept of economic theory
Entropy as Fundamental Concept of Economic Theory
  • Entropy is fundamental concept of economic theory enabling view of economy as sybsystem of Nature and Universe
  • Entropy has relationship to whole economy instead of concept uncertainty with relationship only to decision process and management
information as in formational and structure creating factor
Information as In-Formational and Structure Creating Factor
  • Information is in-formational and structure creating factor, which is creating a new structure of economy, society and civilization – information society
  • Information is new productive factor
  • Information is new form of capital
  • Information is new form of resource
information theory of value
Information Theory of Value
  • Economic value is creating by information
  • Economic value is adding by information
  • Economic profit is genereting by incorporating more information into products and services
  • Generating of information is disequillibrium creating process
  • Diffusion of information is equillibrium renewing process
  • Networking process is based on better access to information therefore more networks means greater value and more profits
economy as dissipative structure
Economy as Dissipative Structure
  • Economy is dissipative structure
  • Economy is dissipating energy
  • Economy is dissipating materials
  • Economy is dissipating capital
  • Economy is dissipating information
  • Developed markets are enabling the dissipation of all economic productive factors
economic productive factors as civilization attractors
Industrial Age Civilization Attractors

Land

Work

Capital

Information Age Civilization Attractors

Information

Knowledge

Attention

Economic Productive Factors as Civilization Attractors
economic productive factors as civilization attractors17
Economic Productive Factors as Civilization Attractors
  • Economic and civilization transformation is process of change of civilization attractors
  • Economy and civilization are restructuring around new civilization attractors in the form of economic productive factors
  • Platform-centric organization of civilization is substituted by network-centric organization
basic structure of economy
Industrial Age Structure of Economy

Platform-Centric Organization

Information Age Structure of Economy

Network-Centric Organization

Basic Structure of Economy
renewing the original significance of economy as householding
Renewing the Original Significance of Economy as Householding
  • Emerging global economy and globalization processes are the challenge and chance for renewing the original significance of global economy as global householding and economics as the science about householding
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