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Heterodox views on economics and the economy of the global society

Heterodox views on economics and
the economy of the global society

M a n sh o lt p u b l i c a t i o n se ri e s - Vo l u m e 1

edited by:
G. Meijer
W.J.M. Heijman
J.A.C. van Ophem
B.H.J. Verstegen


Heterodox views on economics and the economy of the global society



Heterodox views on economics and
the economy of the global society

edited by:
G. Meijer

W.J.M. Heijman
J.A.C. van Ophem
B.H.J. Verstegen

Mansholt publication series - Volume 1

Wageningen Academic
P u b l i s h e r s


ISBN: 978-90-76998-96-1
e-ISBN: 978-90-8686-588-8
DOI: 10.3920/978-90-8686-588-8
ISSN 1871-9309
First published, 2006
© Wageningen Academic Publishers
The Netherlands, 2006

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Mansholt Publication Series
The Mansholt Publication Series (MPS) contains peer-reviewed textbooks, conference
proceedings and thematic publications focussing on social changes and control processes
in rural areas and (agri)food chains, and the institutional contexts in which these changes
and processes take place. MPS provides a platform for researchers and educators who would
like to increase the quality, status and (international) exposure of their teaching materials
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MPS is supported by the Mansholt Graduate School which also appoints the members
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The Mansholt Publication Series editors are:
Prof. Wim Heijman
Prof. Kees de Hoog
Prof. Ekko van Ierland
Dr. Arjen E.J. Wals
Prof. Leontien Visser



Contents
Preface

17

ISINI - the inter- and transdisciplinary project of a great thinker: Anghel Rugina
Liviu Drugus
1. Introduction
2. ISINI in a nutshell
3. Management theory (EMMY) - as a triadic, transdisciplinary, teleologic,
post-modern, holistic and synthetic way of human thinking and doing.
Management as a Doxa-Praxis continuum
4. What is transdisciplinarity?
5. ISINI and the transdisciplinary approach
References

21

Introduction
Gerrit Meijer, Wim Heijman, Johan van Ophem and Bernard Verstegen
1. Keynote lectures
2. Economic paradigms and theories
3. Population and society
4. Corporate issues
5. Environment
6. International relations

29

21
21
22
23
26
27

30
30
31
32
33
34

Keynote speakers
The Sciences of State as a Research Paradigm
Jürgen Backhaus
Avant Propos: In Honour of Sicco Leendert Mansholt (1908 - 1995)
1. Introduction: The Sciences of State as a research paradigm
2. Part I: Describing the Sciences of State
3. Part II: The decomposition of the Sciences of State
4. Part III: The difficulties of integration
5. Part IV: The connection to ISINI
6. Part V: A research programme of the State Sciences
References

Heterodox views on economics and the economy of the global society 

39
39
40
40
45
45
46
46
48

7


Economics of culture
Arjo Klamer
1. Thinking in terms of values
2. Common goods
3. Concluding remarks

51
51
56
57

Economic paradigms and theories
Some aspects of professor Anghel Rugina’s proposal to a money-commodity
Lazaros Th. Houmanidis
Abstract
1. Classics and equilibrium
2. Marx and disequilibrium
3. From Classical to Austrian thought
4. Walras and economic equilibrium
5. Rugina’s contribution to economic equilibrium
6. Concluding remarks
Acknowledgements
References
Annex: Rugina’s Orientation Table for economics and finance

61

Money, freedom and order in the European Union
Gerrit Meijer
Abstract
1. Introduction
2. Money, freedom, and the state
3. The international monetary constitution
4. The national monetary constitution I
5. The national monetary constitution II
6. Monetary problems of today in the European Union I
7. Monetary problems of today in the European Union II
8. Concluding remarks
References

69

8

61
61
63
63
64
65
66
67
67
68

69
69
70
71
72
73
75
77
78
79

Heterodox views on economics and the economy of the global society


Another Marxism: a delimitation of Analytical Marxism
Fabien Tarrit
Abstract
1. Introduction
2. Cohen’s interpretation of historical materialism: the methodological
foundations of Analytical Marxism
3. A new school of thought
4. Roemer and Elster: from an interpretation to a deconstruction
5. Conclusion
References

81

Taxes and elections
Georgi Smatrakalev
Abstract
1. Introduction
2. How did all this start?
3. How is it in real democracies?
4. Conclusion
References

93

81
81
82
84
86
90
90

93
93
94
95
101
101

Population and society
Why prohibit or promote reproductive cloning and genetic engineering? The
myth of biodiversity and of genetic hierarchy
David Moroz
Abstract
1. Introduction
2. Genetic polymorphism, natural selection and genotype: a presentation of
population genetics
3. Unpredictability of evolution and genetic polymorphism: The
quantitative theory of the resilience capability
4. Sexual reproduction, reproductive cloning, and genetic engineering:
some unpredictable effects on the resilience capability of the population
5. Conclusion
Acknowledgements
References

Heterodox views on economics and the economy of the global society 

105
105
105
106
108
109
113
115
115

9


Exploring new methods of helping the world’s orphans
David Macarov
Abstract
1. Introduction
2. Immediate problems
3. Future implications
4. Current solutions
5. Simulated families
6. Is smaller better?
7. Proposed solutions
8. Youth Aliyah
9. Application to Africa
10. Conclusion
References

117
117
117
117
118
118
119
119
121
121
124
127
127

Poverty, poverty alleviation, and capitalism in global and historical
perspective: modeling a relationship between inequality and market
maladjustment
129
Charles Powers
Abstract
129
1. The theoretical connection between market economics and socially
rational goals
129
2. Illustrating that market adjustment can be socially rational by considering
the failure of import substitution policies
131
3. Capitalism and poverty in historical perspective
132
4. A model
134
5. Market adjustment and poverty in global perspective
138
6. Conclusion
139
Acknowledgements
139
References
140
Families and changing life cycles
Kees de Hoog and Johan van Ophem
Abstract
1. Introduction
2. Life cycle, wealth and well-being
3. Changing lifestyles
4. Non-traditional life cycles
5. Concluding remarks
References

10 

143
143
143
144
146
149
151
152

Heterodox views on economics and the economy of the global society


Perceived inflation and actual price changes in The Netherlands
Gerrit Antonides, Wim Heijman and Marleen Schouten
Abstract
1. Introduction
2. Literature
3. Data
4. Model
5. Results
6. Discussion
References

155

Social policy and entitlements: a proposal for reform
Andries Nentjes
1. Introduction
2. The welfare state and its failures
3. Towards a flexible and transparent system of social entitlements
4. Potential bottlenecks
5. Conclusion
References

169

155
155
156
158
159
161
164
166

169
170
174
178
183
183

Corporate issues
Empowering ultimate owners as a means to improve corporate governance
Tsjalle van der Burg
Abstract
1. Introduction
2. Problems of corporate governance
3. Empowering ultimate owners
4. Effects on corporate governance
5. Conclusions
Acknowledgements
References

Heterodox views on economics and the economy of the global society 

187
187
187
187
191
193
195
196
196

11


Vulnerability of a high-trust society: the collapse of Enron
Eiji Furuyama
Abstract
1. Democracy, trust and securities market
2. Securities market deceived
3. The birth of Enron
4. Growth of Enron
5. Failure of Enron
6. An analysis of the case
7. Conclusion
References
The effect of changes in ownership structure on performance: evidence from
the building societies’ demutualization in the UK
Radha K Shiwakoti
Abstract
1. Introduction
2. Hypotheses development
3. Sample and data
4. Methodology and variables
5. Results
6. Conclusions and discussion
Acknowledgements
References
The incremental contribution of financial reporting on the internet to
business reporting
Samir Trabelsi
Abstract
1. Introduction
2. Internet’s contribution to financial reporting
3. Descriptive studies of corporate websites
4. Study of the determinants of reporting on websites
5. IFR: The incremental contribution to business reporting
6. Conclusion and avenues of research
Acknowledgements
References

12 

199
199
199
200
201
204
205
208
209
210
213
213
213
214
216
217
218
223
224
224
227
227
227
228
229
233
236
237
238
238

Heterodox views on economics and the economy of the global society


Environment
An evolutionary defense of emissions trading
Edwin Woerdman and Frans P. de Vries
Abstract
1. Introduction
2. Short-term and long-term efficiency of emissions trading
3. The risk of an institutional lock-in of inefficient regulation
4. Some landmarks in the historical evolution of emissions trading
5. Conclusions
Acknowledgements
References

243

Projecting costs of emission reduction
Yoram Krozer
Abstract
1. Introduction
2. The data on abatement options
3. A method for estimating emission control costs
4. Conclusion
Acknowledgements
References

255

Environmental issues in APEC: the case of the Latin American economies
Antonina Ivanova, Manuel Angeles and Antonio Martinez
Abstract
1. Introduction
2. Trade liberalisation, economic integration and the environment
3. Latin American economies in APEC
4. Towards common principles in APEC’s environmental agenda
5. Conclusions
References

269

Heterodox views on economics and the economy of the global society 

243
243
245
248
250
252
253
254

255
255
256
260
265
266
266

269
269
271
272
277
279
279

13


Adaptation to environmental standards in foreign trade of the Central and
Eastern European Countries
281
Zofia Wysokińska
Abstract
281
1. Theoretical framework: Foreign trade and the environment
281
2. Market access and multilateral regulations in international trade of
environmental products
284
3. Multinational environmental agreements
285
4. Empirical aspects of the relationship between foreign trade and the
environment in the CEE countries
286
5. Environmental norms and standards and the activities of Polish enterprises 290
6. Conclusions
294
References
295
Modelling environmental cooperation on reciprocal emission reduction via
virtual market system
Andries Nentjes and Sergey Shibayev
Abstract
1. Introduction
2. Theoretical model of unilateral and reciprocal emission reduction
3. Constructing marginal benefit functions for acid rain
4. Simulation
5. Comparison of RER with CRP and SSP
6. Conclusions
Acknowledgments
References

297
297
297
299
302
304
305
308
308
309

International relations
Bilateral free trade agreement in the 21st Century: the case of Thailand in late
1990s
Poonsri Sakhornrad
Abstract
1. Introduction
2. Overview of trade policy and bilateral trade agreement
3. Analytical Framework
4. Discussions on bilateral FTA of Thailand
5. Conclusion
References

14 

313
313
313
314
318
324
327
328

Heterodox views on economics and the economy of the global society


The effects of the free trade arrangement on social welfare and urban
employment
Watcharas Leelawath
Abstract
1. Introduction
2. The model and assumptions
3. The analysis
4. Conclusion
References
Appendix A. Derivation of Equation 23 in the main text.
Appendix B. Proof for the condition dδ/dP < 0.
Appendix C. Derivation of Equation 33 in the main text.
Appendix D. Derivation of Equation 34 in the main text.
Outward foreign direct investment: is it a good thing?
Hans Visser
Abstract
1. Introduction
2. Theory
3. Potential pros and cons for the home country
4. Empirical studies
5. Conclusions
Acknowledgements
References
Financial sector reforms and impact of monetary policy shocks in Nigeria: an
implication of vector autoregressive model
Michael Adebayo Adebiyi
Abstract
1. Introduction
2. Theoretical underpinnings and literature review
3. Sources of data and econometric framework
4. Empirical results and analysis
5. Summary and conclusions
Acknowledgements
References

329
329
329
330
334
340
341
341
341
342
342
343
343
343
344
347
348
354
355
355
359
359
359
360
362
366
374
374
375

Index of subjects

377

Index of persons

391

Heterodox views on economics and the economy of the global society 

15



Preface
Gerrit Meijer
ISINI President 2003-2005
It was at the History of Economics Conference in Fairfax (1985) that I first met Anghel
Rugina. I presented a paper founded on the third chapter of my dissertation on the History of
Neoliberalism in Several Countries (1987a). It turned out that he knew the Freiburg School
and in particular Walter Eucken very well. He took his doctor’s degree at the University of
Freiburg on his thesis Geldordnungen und Geldtypen (Monetary Orders and Money Types)
in 1949.
Later on he invited me for a conference of the Association of Social Economics in 1986 at
Toronto. The paper I presented on History of Neoliberalism: Affinity to some Developments
in Economics in Germany, was included in the Festschrift in Honour of Anghel N. Rugina
(1987b). This gave a common ground to our friendship in the world of ideas.
In his work there are two important lines of thinking which interested me at that time.
First his monetary theory. I paid attention to this in my last mentioned paper. Second it
is the idea of Quinta Methodica that he defends in the footsteps of Schmoller and Eucken.
This idea is at the background of the International Society for Intercommunication of New
Ideas (ISINI), that he founded in 1988 in Boston, and of which he was the first president,
and is now at the age of 93 the honorary president. Quinta Methodica means that economic
science has five different, yet interrelated, subdivisions: economic history; economic theory;
economic ethics; economic policy and history of economic thought.
In 1987 Rugina visited the Netherlands. First he met Tinbergen in Rotterdam. Then he and
his wife Irene (Aurelia) were our guests in Bussum for a few days. From there we brought
them to Jaap en Meta Krabbe in Wageningen. Via Freiburg (Hayek), St Gallen (Dopfer) and
Paris (Henri Guitton) they travelled back to Boston. After this trip and these consultations
Rugina founded ISINI. Tinbergen and Hayek both Noble Laureates in economics became
honorary fellows from the beginning, in this way showing their sympathy with the initiative.
It shows also the broad concept and vision of ISINI.
Since the foundation global international meetings were held in Paris, France (1990);
Athens, Greece (1992); Boston, Mass., U.S.A. (1995); Maastricht, The Netherlands (1997);
Mexico City, Mexico (1999); Miami, Florida, U.S.A. (2001); Lille, France (2003), and again
in the Netherlands in 2005, this time in Wageningen. This shows that ISINI is steadily
moving forwards and that it has answered challenges and taken advantage of opportunities
since it was founded.
The purpose of the Society is according to article 2 of the Statutes threefold:
Heterodox views on economics and the economy of the global society 

17


Gerrit Meijer

a.To foster and support the discovery and dissemination of new ideas in particular in
economics and other social sciences and to arrange for their testing (logical and /or
empirical) in the realm of various possible social, economic and political systems, as far
as analysis can go.
b.To initiate and cultivate a contact and consultation not only among economists,
sociologists and political scientists but also between social and natural scientists including
men of arts and letters.
c.To study systematically (using both theoretical and practical reason) the application
of new ideas to problems of the real world of today and tomorrow in various existing
social regimes and considering the diverse levels of development and historical
circumstances.
Also we read in article 5 of the Statutes that the Society has (ideally) seven sections:
Section 1.History and Statistics.
Section 2.Theory, New Concepts, Principles, Interpretations and Explanations (Positive
Science).
Section 3.Ethics, What Ought to Be, General Stable Equilibrium (Normative Science).
Section 4.Policy Matters or How to achieve a certain given goal without creating other
problems. This Section is for those who have the skill, inclination and background
to test both theoretical and practical ideas for consistency and efficiency in terms
of the ultimate values of a free, just and stable society. These are what may be
called “scientific”, tested policies.
Section 5.Doctrines, History of Thought.
Section 6.Arts and Humanities.
Section 7.General supporter of the society in any other way.
The first five sections reflect the Quinta Methodica.
The papers presented at the conferences were originally published in the International
Journal of New Ideas. A Journal of Interdisciplinary Approaches, that was published during
four years (1992-1995). Since the Maastricht-conference (1997) the papers and proceedings
of the conferences were published in book- or electronic form. The papers for the Eighth
ISINI Conference are all at the website. This website will be a means of communication
between us at least until the Ninth ISINI Conference to be held next year in Romania.
This volume contains revised papers that were presented at the Eighth ISINI Conference
in Wageningen. It is wholly in the strain of thought of Rugina (and the Statutes and Bylaws
formulated by him) that we had two special invited speakers on the institutional and cultural
aspects of human society, Backhaus and Klamer respectively. More about these lectures will
be written in the Introduction of the Editors to this volume. I am grateful to the Mansholt
Graduate School (MGS) for supplying the resources for the keynote speech of Backhaus.
His keynote speech is also published as the sixth Mansholt Lecture of the MGS.

18 

Heterodox views on economics and the economy of the global society


Preface

In this preface I also think a few words on the future of ISINI can not be omitted. Thinking
about this has to start at the background of the original purpose, organisation, and methods
how to reach them in the Statutes and Bylaws when ISINI was founded in 1988. At August
23, 1997, at the General Assembly in Maastricht, a motion of Rugina was accepted, which
again clearly stated the purpose and vision of ISINI, and for that reason is cited here in
full:
‘Every professional organisation is striving to have something new, some new ideas or practice
in its own field, but the vision of ISINI transcends this usual common purpose. ISINI has
a new message. Its very existence finds justification in the motto ‘In searching for new ideas,
new better concepts, new better theories and new better interpretations of past and/or present
ideas’. Of course we are in favour of an open dialogue, not only with other already established
directions: mainstream economics, social economics, institutional economics, evolutionary
economics, etc., but also in addition with other fields, first the other sisters in social sciences and
also with natural sciences. But ultimately, our motto remains as a new message. Its roots are in
methodology of science and in analysis. The final dream is a methodological unification of all
sciences. Indeed, if economics pretends to be a science than it must have a common denominator
- of course retaining and keeping its individual character - with all other sciences, i.e. the rest of
our sisters in the fast field of studying human societies of today and other times, together with
the study of Mother Nature, i.e. natural sciences. This is the first final dream in analysis: the
methodological unification of all sciences. The second final dream, actually an continuation of the
first one, namely in practice, in application of methodology of science, is to show consistently and
systematically how to realise and to maintain in the real world the great ideal of all nations, of
all races, that is of humanity: the dream of a Free, Just and Stable Economy and Society. With
this new message ISINI was officially founded in the fall of 1988 and registered as a non-profit
institution in Boston, MA, USA.’ (Meijer et al., 2000: xiii).
I further refer in this respect to the preface to this volume written by my successor Liviu
Drugus. In this contribution to the book he pleas ‘for using new ideas and especially
transdisciplinary approaches in unifying the too many so called ‘sciences’- as a matter of fact
narrower and narrower slides of knowledge with the peak when a super-specialist knows all
about almost nothing. ISINI is considered as an excellent laboratory of developing research
units generating unified science’.
In this contribution he also mentions that for that purpose he intends to organise sessions
that pay special attention to this theme in the conference in Romania in the second half of
August, 2007. We are still far away from having achieved its ideals. A lot of work has been
done, and there is still much work to do. In this context I refer to the comprehensive work
of A. Rugina, especially to his Prolegomena (Rugina, 1998). In this work the fundamental
thoughts of the founder of ISINI are explained.

Heterodox views on economics and the economy of the global society 

19


Gerrit Meijer

I wish to express my thanks to all the people who contributed to the conference with papers
and by attendance. Moreover I thank the Economics of Consumers and Households Group
of Wageningen University for facilities offered in the organisation of the conference.
I am also in debt to those who assisted me during my presidency, the organisation of the
conference and the editing of this book. More in particular I have to mention the invaluable
support of my daughter drs. Ymkje van ‘t Riet-Meijer since I became president in 2003.
References
Meijer, G., 1987a. The History of Neo-Liberalism: A General View and Development in Several
Countries. Rivista Internazionale di Scienze Economiche e Commerciali 7, 577-591.
Meijer, G., 1987b. The History of Neoliberalism: Affinity to Some Developments in Economics in
Germany. Essays in Honour of Anghel Rugina. Part II. International Journal of Social Economics
14, 142-155.
Meijer, G., W.J.M. Heijman, J.A.C. Van Ophem and B.H.J. Verstegen (eds.), 2000. The Maastricht
ISINI Papers, Volume I. Shaker, Maastricht.
Rugina, A.N., 1949. Geldordnung und Geldtypen: Fundamente für eine allgemeine Geld- und
Wirtschaftstheorie. ( Monetary Orders and Money types). Kohlhammer, Stuttgart/Köln.
Rugina, A.N., 1998. Prolegomena to any Future Study in Economics, Finance and Other Social
Sciences: The Road to a Third Revolution in Economic, Financial, Social, Ethical, Logical and
Political Thinking. International Journal of Social Economics 25, 1-388.

20 

Heterodox views on economics and the economy of the global society


ISINI - the inter- and transdisciplinary project of a great
thinker: Anghel Rugina
Liviu Drugus
George Bacovia University, The Management Faculty, Bacau, Romania; ldrugus@ugb.ro
President of ISINI for 2005-2007
1. Introduction
In the eighties, I was very keen interested in interdisciplinary and even transdisciplinary
approaches not only in Economics but in Social Sciences. The reason was my doctoral
dissertation on American radical economic thinking just because many of its representatives
were using interdisciplinary approaches.
Although, in 1990, in Paris, I already presented my End-Means Methodology (EMMY) as a
transdisciplinary and integrative approach in Social Sciences, some of my later developments
were influenced and encouraged by the large vision of the Ruginian way of thinking I have
met only then and there. Just in Paris I have added to my previous binom (end & means) a
third term (the third included, or “tertium datur”) which was “the level of adequacy between
ends and means”. So, from Iasi to Paris I came with a binom, but from Paris to Iasi I came
back with a trinom, which proved to be very useful later in my research and in understanding
the new ideas of Anghel Rugina.
I mention this just to show that from its very beginnings ISINI and its meetings contributed
a lot to generating new ideas, not only in my work, but also in that of other members. The
encouragement given by Anghel Rugina to my research was of great importance and I
discovered later that we have two (slightly) different theories, but a common thinking.
2. ISINI in a nutshell
The International Society for Intercommunication of New Ideas (ISINI) was founded
in 1988. The founder and promoter of this scientific organisation is Anghel N. Rugina
(born in 1913, May 24, in Romania), Professor Emeritus of the Northeastern University
at Boston.
The first conference was held in Paris, France in August 1990, under his moderation. After
15 years, at the Eighth Conference in Wageningen, The Netherlands in August 2005 the
discussions were also highly stimulated by him. I mention his presence not only from my
sincere respect for a world famous Romanian born scholar, but for his Quinta Methodica and
for his methodological courage to break old barriers, frontiers and brakes for the advance of
social and economic knowledge. A very impressive scientific work was done. Just for giving
some examples I mention here Rugina (1993, 1998, 2000a, b).
Heterodox views on economics and the economy of the global society 

21


Liviu Drugus

It is important to stress here that ISINI’s roots are - in conformity with its Bylaws (ISINI,
1988) and the motto taken from the Motion of Prof Anghel Rugina (Rugina, 2000c)
- “In searching for new ideas, new better concepts, new better theories and new better
interpretations of past and/or present theories”. In order to attain such results it is necessary
to develop the “methodology of science” just because “final dream is a methodological
unification of all sciences”. And another our dream is a practical one, i.e. “to show consistently
and systematically how to realise and to maintain in the real world the great ideal of all
nations, of all races, that is of Humanity: the dream of a Free, Just and Stable Economy and
Society”.
As a matter of fact, ISINI is not only an economic nor a financial studies organisation. It
is meant to stimulate the dialogue and methodological borrowings into and onto different
disciplines that are linked with human development. Health management, financial
management, sociological investigations, ideological analysis, teleology, political marketing,
cognitive science, psychology of cognition, history of economic, political and ethical
doctrines, and methodological developments - to mention only some of the areas of the
scientific dialogue - were presented at the eight world conferences, most of them in Europe
and North America (USA and Mexico). As a free organisation meant to facilitate dialogue
and intercultural communication ISINI contributed a lot to economic reform in former
European countries with totalitarian regimes and also to some scientific developments.
ISINI is as open as possible to the new scientific trends that have already made serious
changes both in research and in curriculum. The importance given to the ethical aspects in
all human sciences (humanistics) is the very result of these new inter- and trans-disciplinary
research. I take the advantage of having the possibility to address myself to people keen
interested by research development (i.e. new ideas) to present here a concrete example
of trans-disciplinary approach I launched over 30 years ago: End Means Methodology
(EMMY). EMMY suggests that it is not very useful and rational to study separately and
to be specialised only in one of the three fundamental humanistic disciplines (Economics,
Politics or Ethics). I think that only a simultaneous study of all three disciplines, in an interand trans-disciplinary approach may generate a holistic and integrative behaviour of people.
More than that I shall make a parallel between trends and realities in research activities on
the one hand and the trends and realities in economic, political and social realities on the
other hand.
3. Management theory (EMMY) - as a triadic, transdisciplinary, teleologic,
post-modern, holistic and synthetic way of human thinking and doing.
Management as a Doxa-Praxis continuum
Many of the managerial aspects may be better understood by the political-economicalethical continuum, and managerial strategies are well developed only by taking into account
a fabric of cognitivistic, psychological, sociological, anthropological, juridical, strategical,
22 

Heterodox views on economics and the economy of the global society


ISINI - the inter- and transdisciplinary project of a great thinker: Anghel Rugina

ecological and of many other human dimensions disciplines. Management is, par excellence,
the case of inter- and transdisciplinary approach. As a mater of fact, management is not a
simple scientific discipline or a concrete specialised practice, but a long chain of different
information, rules and principles from a lot of different disciplines. Management is more
than the total sum of all disciplines studying the human behaviour. Management could be a
serious basis for integrating all the so called Social Sciences at least at methodological level.
Management is about establishing ends/goals for individuals or organisations, choosing
the right means for attaining them and fitting and matching all the time (permanently)
proposed means with selected means. Instead of teaching separately hundreds of hours of
(micro/macro/mondo) Economics to our students, followed then by other many hours of
Ethics or of Political science it is better to introduce in the curriculum the transdisciplinary
approach called now Management (I call it EMMY - End-Means Methodology).
In EMMY there are explained and used the basics of fundamental human dimensions:
the political one (i.e. establishing and fulfilling ends in function of existing means); the
economic human dimension (i.e. the means combination and their consumption for
attaining certain ends); and the ethical human behaviour (i.e. how people is considering
the “good” use of means to specific ends and establishing ends in function of existing or
future attracted means). I suggest that this extremely simple description of politic, economic
and ethic fields is to be taught at grammar school, a bit more developed to high and higher
school and of course, at master degrees any development could be made but only in the
same triadic structure. Of course all these explanations should be associated with facts of
life (from household and family, from school and shops, from sport and movies etc.). The
final result would be a better understanding of the three fields - at every level of education
- in comparison with that obtained after reading the big textbooks that are boring most
of the students. And a final remark: EMMY was better receipted in USA than in Europe.
At least in the last years in American newspapers and even in scientific and philosophical
journals I found a real “endmeansmania”, but not in a very developed mood. As a member of
the Editorial Board of the Romanian Journal of Bioethics, but also as a simple contributor
with articles to this journal I promoted, in many articles, at least three main new ideas: 1)
transdisciplinarity, 2) the essential identity between Management and Ethics and 3) the
ethical dimension is inculcated both in Politics and Economics, so no Political Economics
is to be taught without the ethical dimension.
4. What is transdisciplinarity?
There are more perceptions and views on transdisciplinarity. Far from being contradictory I
do consider them as complementary and creating a broader vision on transdisciplinarity. One
of the pillars of transdisciplinarity is the logic of the third included (also called “the logic of
the included middle”, or “tertium datur”. Worth to mention here that “trans” means “three”).
This means that this kind of logic suggests that if there are two antagonistic dimensions (“to
be” and “not to be”, A and nonA, etc.) there should be another dimension to link and to
Heterodox views on economics and the economy of the global society 

23


Liviu Drugus

combine them as a bridge of communication (Lat. comunicatio-onis = to put things together,
to consider them as a common ownership). In my mind, the most complex and well known
example of transdisciplinarity is the Holy Trinity: every two persons of the Holy Trinity are
transcended and bridged by the third one (the third person is included as a bridge between
the other two persons). The easiest example (for our understanding) of bridging and uniting
the two other persons is the Holy Spirit, as a bridge between the God Father and the God
Son ( Jesus Christ). Or, using the existential triad described by the Russian born physicist
Ilya Prigogine1 as “Substance-Energy-Information”, we may describe the three persons of the
Holy Trinity as follows: The God Father is Information, The God Son is Substance and the
Holy Spirit is Energy. So, it is simple to imagine that in every piece of cosmic existence the
energy is keeping together the information and substance. Of course, this is only to offer an
example of transdisciplinarity. Another example is that of Ethics viewed (at least by me…)
as a third middle between Politics and Economics (See, at large Drugus, 1995, 2003).
Of course there are similar or complementary explanations of transdisciplinary
approach. Basarab Nicolescu from the Centre International de Recherches et d’Etudes
Transdisciplinaires (CIRET, Paris) said: “As the prefix “trans” indicates, transdisciplinarity
concerns that which is at once between the disciplines, across the different disciplines, and beyond
all discipline. Its goal is the understanding of the present world, of which one of the imperatives
is the unity of knowledge.” (See, Nicolescu, website). I applied this definition to the Holy
Trinity and…it works! God - as a three-unity of information, substance and energy - is
beyond, across and between the three persons.
In explaining how transdisciplinarity works, Nicolescu (website) uses “Disciplinary research
concerns, at most, one and the same level of Reality; moreover, in most cases, it only concerns
fragments of one level of Reality. On the contrary, transdisciplinarity concerns the dynamics
engendered by action of several levels of Reality at once”. The “levels of Reality”; so, I do
agree with Nicolescu’s vision on transdisciplinarity. It is very helpful and explanatory. Of
course, it is possible to find other applications of Nicolescu’s definition and explanation of
transdisciplinarity as it is very possible to find out new or at least a bit different explanations
of the (relatively) new approach.
I try to go further with Nicolescu’s definition and to offer another example of multiple
levels of Reality, with three of them as fundamental ones (national-monodisciplinary,
federal-pluridisciplinary, international-interdisciplinary and transnational-transdisciplinary)
from the so called Social Sciences It is simply to observe that the disciplinary approach
1 Nobel

Prize winner 1974 and a honorary member of ISINI. In our tridimensional space, it is clear that the
fundamental cosmic existence is structured as Substance-Energy-Information. Of course other less fundamental
structures may be imagined or discovered. The Christian religion (even other religions and beliefs) stated a
tri(u)nitary God, as our existence is triadic and trialectic. This is not a Christian propaganda, but only a (possible)
example… I do consider that a isomorphic construction based on religion, philosophy and (natural) science is
possible and this could be reported in future ISINI conferences.

24 

Heterodox views on economics and the economy of the global society


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