“THE ECONOMIC BASES OF KNOWLEDGE MANAGEMENT” Prof. Dr. André MAÏSSEU

1. “THE ECONOMIC BASES OF KNOWLEDGE MANAGEMENT” Prof. Dr. André MAÏSSEU World Council of Nuclear Workers Paris

2. THE CONVENTIONAL ECONOMIC FUNCTION • Y (t) = f (K, L) + residue • IS BASED ON ECONOMIC DOGMAS •  The reversibility of economic processes •  Labour as a production factor •  Time as a measure of technical progress •  The additively of the production function • The existence of a conservative, closed economic system, whose limited resources are regulated by deterministic processes • The mythical existence of a general equilibrium • ...

3. IT DESCRIBES A CLOSED SYSTEM OF LIMITED RESOURCES RUNS BY REVERSIBLE PROCESSES BASED ON THE USE OF AN HAMILTONIAN MOVING “NATURALLY” TO EQUILIBRIUM. SOME PARTIAL LOCAL INSTABILITITES COULD BE EXPLAINED BY NON-LINEAR MATHEMATICAL FUNCTIONS

4. THEY ARE THE BASES OF THE “POLITICALLY CORRECT” SUSTAINABLE DEVELOPMENT A NEO-MALTHUSIAN VIEW :  WEALTH IS PRODUCED BY CONSUMPTION AND DESTRUCTION OF NATURAL RESOURCES  HUMANS ARE PREDATORS !

5. THIS “POLITICALLY CORRECT” SUSTAINABLE DEVELOPMENT THE RECKLESS EXPLOITATION OF NATURAL RESOURCES LEAD TO THEIR DEPLETION FOLLOWING THE RICARDO LAW OF DIMINISHING RETURNS ... IN ANENTROPICPROCESS

6. THE “POLITICALLY CORRECT” SUSTAINABLE DEVELOPMENT FOR THIS NEO-MALTHUSIAN VIEW:  WORLD IS ACLOSED SYSTEMWITH LIMITED RESOURCES  THEFUTUREOF EARTH WILL BEJEOPARDIZEDIF EVERYBODY WOULD HAVE THESAMELIFE LEVEL AS THE BILLION HUMANS LIVING IN “DEVELOPPED COUNTRIES”

7. DUE TO NUCLEAR ENERGY •  PRODUCTION  •  CONSUMPTION  •  NATURAL RESOURCES SCARCITY AND POLLUTION  • THE FINAL COLLAPSE OF THE WORLD IS COMING SOONER! • THE N°1 ENEMY : • NUCLEAR ENERGY

8. THESE POLITICALLY CORRECTDOGMAS DESCRIBE AN ENTROPIC SYSTEM RUNNING TO THE FINAL CATASTROPHE

9. THESE DOGMAS ARE THE IDEOLOGICAL BASES OF THE NEOMALTHUSIANS WHICH ARE PRESENTLY RUNNING THE COLLECTIVE MIND OF THE PLANET DECISION MAKERS WITH AN UNIQUE CONCERN : HOW TO SLOWDOWN AN ENTROPIC SYSTEM RUNNING UNAVOIDABLY TO THE FINAL CATASTROPHE ?

10. IS IT POSSIBLE TO AGREE WITH SUCH PESSIMISTIC DETERMINISTIC “LAW” ? LET HAVE A LOOK ON THESE DOGMAS

11.  The reversibility of economic processes IS Y(-t) = -Y(t) ? NO ! ECONOMIC SYSTEM HAS TO FOLLOW PRIGOGINE NON-REVERSIBLE THERMODYNAMICS

12. Labour as a production factor • LABOR IS DUAL : • OPUS & LABOR •   or •  &  : • ENERGY ANDKNOWLEDGE • Y = f(K(t), M(t), U(t),E(t))

13.  Time as a measure of technical progress As time is an universal value whose definition and value are independent of place, how can one explain the differences in technological development in the world? As time is used to quantify the increase in the efficiency of capital by the notion of technical progress , how it can be synonymous with loss of efficiency of capital by application of depreciation rules.

14.  Time as a measure of technical progress THE « WAR » OF MACRO-ECONOMIC TIME AGAINST MICRO-ECONOMIC TIME !!!

15.  The additively of the production function AS THE WORKING HOURS ARE DIFFERENT. THIS HETEROGENEITY OF LABOR DEPRIVES IT OF THE PROPERTY OF ADDITIVITY. THE CONVENTIONAL ANALYSES IMPLICITLY ASSUMES, FROM THE STATISTICAL EFFECT, THIS PROPERTY CAN BE RESTORED. IT IS NOT POSSIBLE. (C. HERMITE THEOREM). SINCE ONE FACTOR DOES NOT POSSESS THE ADDITIVITY PROPERTY, THE FUNCTION OF PRODUCTION DOES NOT POSSESS SUCH PROPERTY.

16. The existence of a closed and conservative economic system THIS DOGMA CONVEYS THE IDEA THAT IDENTICAL PRODUCTION FACTORS WOULD BE FOUND AT THE END OF PRODUCTION AND CONSUMPTION PROCESSES. IT CANNOT WITSTAND THE SIMPLE OBSERVATION OF THE REALITY OF AN ECONOMIC SYSTEM, WHICH PRODUCES SCRAP, WASTE AND POLLUTION.

17.  The mythical existence of a general equilibrium As irreversible processes animate the functioning and evolution of the economic system, it endowed with a body of particular properties, allowing for self-organization processes concretized stable states, occurring far from equilibrium. Systems in a state of equilibrium accordingly appear as limiting cases and not as representative models of real economic behavior

18. The existence of deterministic processes INASMUCH AS THE SYSTEM POSSESSES AT LEAST THREE DEGREES OF FREEDOM, THE PRECONDITIONS FOR THE APPEARANCE OF CHAOTIC REGIMES ARE SATISFIED (H. POINCARE).

19. The existence of deterministic processes DETERMINISTIC FUNCTIONING ≠ CHAOTIC FUNCTIONING (1) The first mode is deterministic. It is described by an Hamiltonian. For any system not supplied from outside, that is to say where the input term in x(t) is identically nil, the functioning, which obviously depends only on its internal properties, is in fact described by a homogeneous, continuous, derivable production function of Hamiltonian form. This is the functioning mode that is the setting of the Ecolo-Malthusian logic, just like conventional economic logic. These logics inevitably culminate, with varying speed, in the destruction of the societal system. (2) The second mode corresponds to a functioning and an evolution concerned with economic growth that can indefinitely create wealth, while respecting the environment. This implies the opening of the system and incorporation of the flows of new knowledge as inputs. 

20. The existence of limited resources THERE IS NO LIMIT FOR KNOWLEDGE

21. THE REALITY: A SYSTEM WHERE IRREVERSIBLE ECONOMIC PROCESSES RUN EVOLUTION AND WORKING WHICH MAY BE “OPEN” BY KNOWLEDGE FLOWS

22. Y = f(K, M, U, E) • GESTALTECONOMY

23. From regression based on entropic exploitation of tangible, TO DEVELOPMENT BASED ON NEGUENTROPIC USE OF INTANGIBLE • From exploitation of natural ressources TO THE USE OF HUMAN KNOWLEDGE

24. FROM THEORIES TO MANAGEMENT 

25. SOME PROPERTIES OF KNOWLEDGE KNOWLEDGE IS UNIQUE WHEN ANY PEOPLE «LEAVES», WE MAY LOOSE «SOMETHING »

26. SCHUBERT « UNFINISHED » 8th SYMPHONY STENDHAL « LUCIEN LEUWEN » KARL MARX « KAPITAL»’s CONCLUSIONS

27. SOME PROPERTIES OF KNOWLEDGE KNOWLEDGE IS USED WITHOUT CONSUMPTION

28. SOME PROPERTIES OF KNOWLEDGE KNOWLEDGE USES INCREASED ITS VALUE

29. SOME PROPERTIES OF KNOWLEDGE KNOWLEDGE HAS A COST, BUT NO FORECASTED VALUE

30. SOME PROPERTIES OF KNOWLEDGE SAME KNOWLEDGE MAY BE SHARED BY MANY

31. SOME PROPERTIES OF KNOWLEDGE KNOWLEDGE IS NEGENTROPIC

32. WHAT IS ENTROPY ? STATE A STATE B E = W + Q  S  ORDER = n E = W  S = 0 ORDER = 1 The total loss of efficiency is a measure of the increase in entropy. (de Rosnay)

33. CLAUSIUS’ ENTROPY DEFINITION ≠ SHANNON’ ENTROPY DEFINITION ?

34. THE UNSOLVED MAXWELL « DEVIL » PARADOX THE « MAXWELL » DEVIL MAY INCREASE ORDER ENTROPY (CLAUSIUS DEFINITION) WITHOUT WORK !!!

35. EVEN THE GREAT RESPECT I HAVE FOR MAXWELL, HE FORGOT SOMETHING: HIS DEVIL MUST KNOW THE COLOR OF THE BALL !!! KNOWLEDGE

36. From a « closed » system to an « open » system  KNOWLEDGE IS NEGENTROPIC (A.Maïsseu and R. Le Duff, L’Anti-Déclin, ESF, 1988) log E = βigiQie-Qi INFORMATION FLOWS = δE/δt Se CLAUSIUS’ ENTROPY DEFINITION ≡ SHANNON’ ENTROPY DEFINITION

37. PRIGOGINE : THE EVOLUTION OF ANY SYSTEM DEPENDS ON WHETHER THE VALUE OF S (ENTROPY) IS NEGATIVE OR POSITIVE: S = Si + Se < / > 0 THERE IS DEVELOPMENT IF AND ONLY IF : │ Se│> Si

38. IN ANY OPEN SYSTEM NEGENTROPIC FLOWS COULD REVERSE FROM THE FATAL DISASTER. Se < 0 (NEGENTROPY) IT IS POSSIBLE FOR AN ECONOMIC / SOCIAL SYSTEM DUE TO THE USE OF KNOWLEDGE

39. Entropy Negentropy O.Lange   Y(t) = qj(t)eλjt + (arsDreθsD) X(t) Y(t) = Yi(t) + Ye(t) S = Si + Se Y(t) = f(K, L) + residue S > 0 S < or > 0   Prigogine     Cobb Douglas  KNOWLEDGE

40. THE REAL WAY FOR SUSTAINABLE DEVELOPMENT •  WEALTH IS PRODUCED BY ACCUMULATION OF HUMAN INGENUITY • THE USE OF KNOWLEDGE

41. DUE TO USE OF KNOWLEDGE APPLY TO NUCLEAR ENERGY •  WEALTH  •  WASTE RECYCLING • POLLUTION   THE N°1 FRIEND : • NUCLEAR ENERGY