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O. Güvenen 2012 / II INTERACTIONS OF WORLD – REGIONAL DYNAMICS AND THE ROLE OF UNIVERSITIES AS A CATALYST Orhan Güvenen 1

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Presentation on theme: "O. Güvenen 2012 / II INTERACTIONS OF WORLD – REGIONAL DYNAMICS AND THE ROLE OF UNIVERSITIES AS A CATALYST Orhan Güvenen 1"— Presentation transcript:

1 O. Güvenen 2012 / II INTERACTIONS OF WORLD – REGIONAL DYNAMICS AND THE ROLE OF UNIVERSITIES AS A CATALYST Orhan Güvenen 1 BILKENT UNIVERSITY, INSTITUTE OF WORLD SYSTEMS, ECONOMIES AND STRATEGIC RESEARCH (DSEE) 1st Winter Summit at Anatolian Summit (WISAS) Under the Auspices of Silk Road Universities Consortium Collaborative Projects on Tourism, Sports, Bio-Diversity and Global Changes Atatürk University Erzurum, February 23 – 26, Director of the Institute Of World Systems, Economies And Strategic Research (DSEE), Chairman of the Accounting Information Systems Department, Member of the Executive Board and Chairman of the Advisory Committee on Strategy, Economy and Industry of “National Nanotechnology Research Center – UNAM”, Invited Professor of the University of Paris-Pantheon, World Academy of Art and Science Fellow (WAAS), President of “Applied Econometrics Association”. ©

2 O. Güvenen 2012 / II TABLE OF CONTENTS I. THE STRUCTURE OF SOCIETY AND WORLD DYNAMICS IN COMPLEX SYSTEMS 3 II. REGIONAL DYNAMICS AND ITS INTERACTIONS WITH WORLD DYNAMICS AND NATION STATE 14 III. THE ROLE OF UNIVERSITIES AS A CATALYST IN ENHANCING REGIONAL, NATION STATE AND INTERNATIONAL SOCIETAL DEVELOPMENT AND HUMANITY OPTIMAL 22 2

3 O. Güvenen 2012 / II 33 I. I. THE STRUCTURE OF SOCIETY AND WORLD DYNAMICS IN COMPLEX SYSTEMS

4 O. Güvenen 2012 / II 44 Ɛ Socio-economic phenomena by its structure is mathematically complex, mathematically chaotic and of low predictability. Given these factors and constraints, the analysis, research, decision making concerning the socio economic phenomena requires great attention, because its Ɛ (unknowns) are not comparable to physical sciences. 2 Error margins in general are of percentage level in some cases they can exceed 10%, even sometimes the given orientation can be misleading. In physical sciences the error margins are of the order 1 to ten thousand, 1 to one hundred thousand, to 1 million etc. 2 Güvenen, O., (2011), “World Dynamics and Science Methodology, Technologies, Innovation, Production Structures, Information Systems, Ethics and Strategic Decision Making”, Graduate Lecture Notes, Institure of World Systems, Economies and Strategic Research (DSEE), Bilkent University, Ankara, p.18

5 O. Güvenen 2012 / II 55 Ɛ What is realized in physical sciences is at the end apply to the society and human being, we need to take into consideration this Ɛ factor. The analysis of world dynamics and complex socio-economic structures requires an intensive understanding of this biasness.

6 O. Güvenen 2012 / II 66 In dealing with the socio-economic phenomena, we don't know what is "absolute reality". We can only talk of probabilistic, relative, observable reality. When we observe the world dynamics in terms of information flow, international relations, economic interactions, what remains pertinent is dominantly a dynamics driven by power and power of money systems. The existing world dynamics can not lead to sustainability in terms of environment, human well being and world peace.

7 O. Güvenen 2012 / II 77 In a world of 7 billion human beings with $69 trillion GDP over 200 nations states, where 193 are United Nations members, 3 billion human beings are living with less than 2 dollars per day. Globalization that we experience for the last 3 decades do not have any strategy or philosophy behind. It is the product of microchips with the enhancing use of computers and internet. The financial markets started to use these remarkable tools to buy and sell in real time.

8 O. Güvenen 2012 / II 88 Today on the average $3 trillion are circulated in a day in financial markets. It moved later on to real economy. This was called globalization, and it does not have any strategy or philosophy behind as mentioned above. And there is no any legal or economic framework or institutions to regulate the system. The world economic crisis of 2008 is a natural result of the above mentioned structure where the most important explanatory variable is the lack of “ethics”.

9 O. Güvenen 2012 / II 99 In 2008, the world GDP was $60 trillion. The same year, the financial markets and investment banks operations exceeded $600 trillion, more than 10 times the world GDP. The operations concerning this over $600 trillion were not under any economic or legal regulatory framework. In 2012, the situation is the same and it didn't change.

10 O. Güvenen 2012 / II 10 In a world that dominantly driven by power and power of money, for the last 3 decades, the world is getting richer in accumulated sense. The same world is worsening in terms of income distribution at the world level when we observe Gini coefficients and Lorenze curves. As it was mentioned, out of 7 billion world population, 3 billion human beings are living with less than 2 dollars a day. In this context, you can not create a sustainable world dynamics, stop conflicts, wars, avoid drug traffic, human traffic and to realize the well being of humanity and peace.

11 O. Güvenen 2012 / II 11 The humanity, nation states, institutions, corporations, non governmental organizations, individuals need to move from this system 2 to system 1 which should be driven by science, technology, ethics, value systems, culture, global consciousness driven decision systems for humanity well being and peace. 3 When we observe the information flow at the level of our planet, concerning specially socio-economic phenomena, we observe non negligible error margins and information distortions. In such a structure you can not talk in mathematical terms of world optimal or humanity well being. 3 Güvenen, O., (2008), “Economic Prosperity, Interaction with Science, Knowledge and Value Systems” in Statistics, Science and Public Policy XII, ed. A.M. Herzberg, Kingston: Queen’s University, p. 49, ISBN:

12 O. Güvenen 2012 / II 12 The initial source of this biasness in Gadamer's hermeneutics sense is that the initial signals of the world dynamics are dominantly power and power of money driven structures. 4 In such a highly biased structure, analytically you can not elaborate optimal decision systems at the global, regional, nation state regions level and decision making converging to humanity well being and peace. (Figure 1) 4 4 Gadamer, Hans-Georg (1976), “Philosophical Hermeneutics” Berkeley: University of California Press

13 O. Güvenen 2012 / II 13 WORLD DYNAMICS REGIONAL GROUP of NATION STATES NATION STATE REGIONS Figure 1 : Interactions of World Dynamics with Regional Group of Nation States and Nation State Regions

14 O. Güvenen 2012 / II 14 II. II. REGIONAL DYNAMICS AND ITS INTERACTIONS WITH WORLD DYNAMICS AND NATION STATE

15 O. Güvenen 2012 / II INTERACTIONS OF WORLD DYNAMICS WITH A GROUP OF NATION STATES DYNAMICS AND ITS DIRECT IMPACT ON NATION STATE REGIONS

16 O. Güvenen 2012 / II 16 Regional development requires to analyze intesively world dynamics and nations state dynamics. We need to evaluate the feasibility, the degree of freedom for the realization of projects, its value added for the region optimal. In this context the following factors can be considered as important explanatory variables: 5 Leadership Scientific and technological knowledge Social capital and its linkage to multi-factor, multi-sector productivity growth and regional, nation state development Regional innovative system Knowledge based regional development 5 Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol & 7, pp , p.192

17 O. Güvenen 2012 / II 17 In regional analysis and strategy evaluation, the geographical foundations of economic growth and societial development need to be endogenized to the system. The locational interdepencies, the persistence of efficiency and innovation enhancing clusters of labor in economic and social development are intensively linked to the geographical factors. 6 The probability of having severe social costs and many kinds of technical diseconomies is relative high. 6 Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol & 7, pp , p.193

18 O. Güvenen 2012 / II 18 Globalization tends in general to create agglomerative tendencies in many areas of the world, for example, 40% US employment is currently located in areas constituting in only 1.5 % of its total land area. Rapidly rising cost of urban concentration due to congestion, pollution, escalating land prices, crime, family breakdown etc, needs to be taken in consideration in nation state and regional, societal development strategies. “Regional economic and societal development involves a mixture of exogenous constraints, the reorganization of local asset systems and political mobilization focused on institutions, socialization and social capital.” 7 7 Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol & 7, pp , p.198

19 O. Güvenen 2012 / II 19 Regional innovation system theory indicates the importance of the following areas: “Evolutionary economics, The economics of innovation Theories of interactive learning Institutional economics Regional competencies” 8 8 Uyarra, E, (2010), What is Evolutionary about ‘Regional Systems of Innovation?” Implications for Regional Policy. Journal of Evolutionary Economics, 20, 115, 337

20 O. Güvenen 2012 / II KNOWLEDGE DYNAMICS AND REGIONAL POLICIES

21 O. Güvenen 2012 / II 21 Regional policies requires intesively the knowledge dynamics. The following factors can be considered as determinant ones: “The importance of combining different types of knowledge, for instance scientific, organizational and cultural The relationship between local and global knowledge interactions The interaction of private and public knowledge resources The role of sectors, regions and national institutions in shaping economic and social development The importance cross-sectoral knowledge interactions for driving innovation” 9 9 Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public Policy”, Eurodite, p.4

22 O. Güvenen 2012 / II 22 III. III. THE ROLE OF UNIVERSITIES AS A CATALYST IN ENHANCING REGIONAL, NATION STATE AND INTERNATIONAL SOCIETAL DEVELOPMENT AND HUMANITY OPTIMAL

23 O. Güvenen 2012 / II WORLD DYNAMICS AND UNIVERSITIES

24 O. Güvenen 2012 / II 24 World Dynamics Regional Dynamics Universities’ Contribution to Scientific Analysis, Modeling, Quantification, Decision Systems Regional Optimal, National State Optimal, Humanity Optimal, Solution Optimal Figure 2 : World Dynamics, Scientific Analysis, Decision Systems and Humanity Optimal

25 O. Güvenen 2012 / II 25 We observe an exponentially increasing impact of knowledge and Information and Communication Technologies on education, science, technology and decision systems. These factor were driven dominantly by the western world. In the beginning of 21st century they tend to move equally to Asia, Latin America and other parts of the world. The creation of high value added requires efficient use of knowledge, innovation, organization, entrepreneurial and decisional skills.

26 O. Güvenen 2012 / II 26 The practice of transdisciplinary science methodology to deal with mathematically complex, mathematically chaotic, low predictibility systems, and minimizing the error margins, information distortions do have a very positive impact on decision systems in creating higher value added products and services. Universities through education, research and enhanced interactions with industry and business can play a very important catalyst role at the level of region, nation state, international development, human well being and peace.

27 O. Güvenen 2012 / II 27 In the endogenization of regional, nation state, international strategies, the impact and contribution of universities is a necessary condition. They provide science, technology, knowledge, strategic planning, decision support systems through research, education and enhanced cooperation with industries and businesses Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public Policy”, Eurodite, p.4

28 O. Güvenen 2012 / II EDUCATION, RESEARCH, INDUSTRY AND BUSINESS INTERACTIONS IN A SET STRUCTURE SYSTEM : THIRD GENERATION UNIVERSITIES

29 O. Güvenen 2012 / II 29 Third generation universities combine in a fully complementary approach, education, research, industry and business. In that context, industry and business become directly an active component of the university. Through its inputs to education and research contributes to its dynamics, it creates a higher education, research and financial value added to the output of the university Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, p. XIV, ISBN:

30 O. Güvenen 2012 / II 30 Figure 3 : Research Methodology Strata and its evolution Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, sayfa 106, ISBN:

31 O. Güvenen 2012 / II 31 The impact of transdisciplinary methodology in enhancing the catalyst role of universities in societal and human development is a substantial contribution. Equally the use of efficient information systems and decision support systems with above mentioned factors are necessary conditions in the “Third Generation Universities” applications converging to nature, peace and humanity well being. This approach will enhance the role of universities as a catalyst in regional and nation state societial development in the context of complex world dynamics.

32 O. Güvenen 2012 / II 32 REFERENCES Gadamer, Hans-Georg (1976), “Philosophical Hermeneutics” Berkeley: University of California Press Gadamer, Hans-Georg (1976), “Philosophical Hermeneutics” Berkeley: University of California Press Güvenen, O., (2011), “World Dynamics and Science Methodology, Technologies, Innovation, Production Structures, Information Systems, Ethics and Strategic Decision Making”, Graduate Lecture Notes, Institure of World Systems, Economies and Strategic Research (DSEE), Bilkent University, Ankara, p.18 Güvenen, O., (2011), “World Dynamics and Science Methodology, Technologies, Innovation, Production Structures, Information Systems, Ethics and Strategic Decision Making”, Graduate Lecture Notes, Institure of World Systems, Economies and Strategic Research (DSEE), Bilkent University, Ankara, p.18 Güvenen, O., (2008), “Economic Prosperity, Interaction with Science, Knowledge and Value Systems” in Statistics, Science and Public Policy XII, ed. A.M. Herzberg, Kingston: Queen’s University, p. 49, ISBN: Güvenen, O., (2008), “Economic Prosperity, Interaction with Science, Knowledge and Value Systems” in Statistics, Science and Public Policy XII, ed. A.M. Herzberg, Kingston: Queen’s University, p. 49, ISBN: Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public Policy”, Eurodite, p.4 Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public Policy”, Eurodite, p.4

33 O. Güvenen 2012 / II 33 REFERENCES Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol & 7, pp , p.192, 193, 198 Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol & 7, pp , p.192, 193, 198 Uyarra, E, (2010), What is Evolutionary about ‘Regional Systems of Innovation?” Implications for Regional Policy. Journal of Evolutionary Economics, 20, 115, 337 Uyarra, E, (2010), What is Evolutionary about ‘Regional Systems of Innovation?” Implications for Regional Policy. Journal of Evolutionary Economics, 20, 115, 337 Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, p. XIV and 106, ISBN: Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, p. XIV and 106, ISBN:


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