Экономика и гуманитарное знание: Тенсивность в институциональной матрице Economics and Humanities Knowledge: Tension in the Institutional Matrix SVETLANA KIRDINA (RUS) GREGORY SANDSTROM (CAN) Russian Academy of Sciences European Humanities University Institute of Economics (ИЭ РАН) Mass Media and Communication Moscow, Russia Vilnius, Lithuania

2 Presentation Outline  Introduction  New Social-Economic Theory & Pre-Ideas of Institutional Matrices Theory (IMT)  Synopsis and Uses of IMT  Tension in the Matrix: X- & Y- Theory (Bridge)  Human Extension & Intension in Institutions  An Alternative to ‘Evolutionary’ Ideology  Conclusions – Re-humanising Economics with IMT and Tension Methodology “[E]conomics should become a humanistic science of the economy.” – D. McCloskey April 2013, St. Petersburg, Russia X- V- Y- / In- Ex-

3 Why Do We Need New Social- Economic Theories? 1.Most theoretical schemes are insufficient and inadequate for understanding and predicting transformations in Russia today. 2.Theories of the so-called “western mentality,” i.e. the sociological mainstream: founding fathers (and a few mothers) of sociology, “Big Four” countries have contributed basic ideas in global and local theories. 3.Russia genuinely uses these ‘famous’ western theories in analyzing various new phenomena. But they are not always effective for Russia’s unique, long-term development. 4.Russia today needs new social-economic theories to fill the gaps left by ‘western’ and ‘European’ ones, that have not satisfied the Russian ‘cultural’ or ‘natural’ mindset. April 2013, St. Petersburg, Russia

Rethinking Society: Not One but Two Types of Economic ‘Systems’ URPE, SAN DIEGO, USA, JANUARY  1853 – Karl Marx (Germany) – two paths of development: “European” and “Asiatic mode of production without private ownership of land”  1939 – Walter Eucken (Germany) – “exchange economies” and “centrally planned economies”  1953 – Karl Polanyi (Hungary-Austria-Canada) – market (exchange) and redistribution economy  1990s – Natalia Drozdova, Nadezhda Lebedeva and Olga Bessonova (Russia): institutional concepts about non-market historical path of Russia’s economy – ‘razdatok’  2002 – Steven Rosefielde (U.S.A.) – market self-regulating category A economies & culture-regulated category B economies

5 Main Theses of IMT  Economic, political and ideological institutions comprise the “institutional matrix” (IM) of human societies.  Each sphere is regulated or guided by a corresponding set of basic institutions.  Two types of institutional matrices can be identified: an X-matrix and a Y-matrix.  Ideology is the hardest to quantitatively measure because it involves ethics, values and interests. April 2013, St. Petersburg, Russia

6 X- & Y-matrices X Y Redistributive economy Communitarian ideology Unitary-centralized political order Federative political order Ideology of subsidiarity Market economy X April 2013, St. Petersburg, Russia

Combinations of X- and Y-matrices Russia, CIS, China, India, Europe and Western most Asian, Middle Eastern, Offshoots: the USA, Latin American, and Canada, Australia, some other countries and New Zealand Y X Y X 7April 2013, St. Petersburg, Russia

Seeking Proper Proportion in Nation-States  Historical research shows that one matrix prevails in a steady character.  Even if, by virtue of external pressures or under influence of distorted internal stress, attempts are made to replace one dominant matrix (X- or Y-) with the other subordinate matrix (Y- or X-), a situation of outright reversal is, as a rule, short-lived (e.g. USSR & USA).  Conclusion: Proportionality, the Golden Ratio, balance among the Institutions, complement instead of conflict among super-systems 8April 2013, St. Petersburg, Russia Paul Klee – Eros (1923)

Proportion of GDP produced by countries with a prevailing X- and Y-matrix, (Maddison Data Base, sample of 34 nations ~75% of World GDP) X-matrix countries: China, India, Japan, Brazil and former USSR countries. Y-matrix countries: Western Europe (Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Switzerland and United Kingdom) and Australia, New Zealand, Canada and United States. 9April 2013, St. Petersburg, Russia

Tension in the Institutional Matrix X Y Y X Svetlana Kirdina – Institutional Matrix Theory (2000) Stephen Hawking – A Brief History of Time (1999)

A New Humanities/HSS Paradigm – Tension Main Ideas:  Balance, Proportion, Harmony  A. Comte – Dynamics, Statics and obsolete 3-stage Theory (e.g )  In-tension & Ex-tension as markers of Human Tension  Innovation Diffusion Theory = Extension Theory Y = A * F(K,L) Y = output, A = productivity, K = capital, L = labour G.A. Feldmann (USSR) – Extensive and Intensive Growth  M. McLuhan, A.N. Whitehead, R.W. Emerson, H. Grassmann

Human Extension “All human artefacts are extensions of man[kind].” – M. McLuhan (1967) “The entire evolutionary process shifted, at the moment of Sputnik, from biology to technology.” (1969)

‘Evolution’: Good Biology/ Bad (Economic) Sociology  What alternative to ‘evolution,’ since it has too much ideological/philosophical baggage?  What are the limits of ‘evolutionary theory’ (e.g. what are ‘things that don’t evolve’)?  Institutional Matrices don’t ‘evolve’ by chance (random) they ‘extend’ by choice (purpose) “Darwin’s theory was good biology which was perverted by others to support bad sociology.” – T. Dobzhansky (1956) “When philosophy occupies itself with the animal man it ceases to be a philosophy of man and becomes a philosophy of animals, a chapter of zoology dealing with man.” – P. Chaadaev (1829) “Zoocentric Misanthropy” – S. Fuller (2006)

Post-Evolutionary Economics = Re-Humanising Values & Interests “[B]iological evolution has instilled in us no ethics and no ability to discriminate between good and evil.” – Dobzhansky (1963) “Sociologists should stop deferring to the authority of biologists.” – Fuller (2006) Human Social Sciences (HSS) – Humanities:  Struggle (conflict, war) vs. Tension (stress, ‘mutual aid’)  Natural Selection (environmental pressure) vs. Human Selection (human factor, agency)  Chance, Random Change (Fatalism) vs. Purpose, Plan and Design (Teleology) “The field of the sciences of human action is the orbit of purpose and of conscious aiming at ends; it is teleological.” – L. von Mises (1957)

IMT & Tension Methodology as Alternatives to Evolutionary Economics & Values  Institutions result from human extension – teleological change-over-time  What do values and ethics extend from? What are the ‘intensions’ and ‘extensions’ of institutional design ?  (Re-)Humanising Economics to include ethics, values and interests  Anthropic-Economics (Humanitarian / Humanities / Humanistic), not only Neuro-Economics or Behavioural- Economics or Materialistic-Economics “Economic action is teleological, in the sense that men [sic] always and everywhere seek to do something.” – K. Boulding (1981)

What is at Risk in Dehumanised Economics? Altruism & Egoism “The basic principle of altruism is that man has no right to exist for his own sake …that self-sacrifice is his highest moral duty, virtue and value…the moral base of collectivism.” – Ayn Rand (1963) “ Capitalism and altruism cannot coexist in the same man or in the same society…capitalism certainly does not and cannot work on the principle of selfless service and sacrifice.” – Rand (1960) “[R]eason and altruism are incompatible. And this is the basic contradiction of Western civilization : reason vs. altruism.” – Rand (1963)

Values & Interests, Extension & Intension, Economics and Society  Extensive & Intensive Development – re-imagining a post- Soviet, non-Imperial, Russian socio-economic approach.  Tension in the Information Society : Not only physical, but also mental &/or spiritual, including ethics, values, interests. Balancing intensity & extensity, following an integral ‘law of proportionality,’ seeking a Golden Ratio in society & economics Translation from Russian to English and other languages  HSS Language: Agency, Choice, Purpose, Plan, Goal; Teleology

Dialogue Points / Conclusions 1. Don’t treat economics like a natural-physical science ; i.e. don’t try to take the humanity out of economics with formulas, statistics, explanations and answers that ignore the cosmos of human thought, feeling, emotion, intuition, etc. 2.Realise that everyone deals with ‘tension,’ of one kind or another and that our task as humanities/social sciences scholars is to help people understand and to live/act forward 3. Institutions are valuable in the study of society and economies, but they are not only objective ‘out-there’ phenomena; they also involve subjective ‘in-here’ participation 4.Joining the ideas of IMT and Tension creates a new global-local economic sociology, focussed on choices, values and interests 5.Question: How to consider methodological individualism with the rise of institutions – what other suggestions about how to express this?

Экономика и гуманитарное знание: Тенсивность в институциональной матрице Economics and Humanitarian Knowledge: Tension in the Institutional Matrix SVETLANA KIRDINA (RUS) GREGORY SANDSTROM (CAN)

IMT in Russia and beyond Books and Articles on Kirdina’s IMT  Institutional Matrices and Development of Russia. 1 st ed. 2000, 2 nd ed. 2001, 3 rd ed  X- and Y-Economies: Institutional Analysis,  IMT is included in “Sociological Encyclopedia”, 2003 and “Sociological Dictionary”, 2010,  IMT is presented in the curricula of Sociology, Economics & Political Science – more than 30 courses offered at main Russian universities ( Russian Internet data ).  References to IMT and summary of the main IMT provisions (and critiques) can also be found in scholarly works in China, Japan and some European countries. 20April 2013, St. Petersburg, Russia

Human Tension Methodology Articles and Video on Sandstrom’s HTM  “The Extension of Evolution.”  “The Extension of ‘Extension’ OR the ‘Evolution’ of Science and Technology as a Global Phenomenon.”  “Evolutionary and Institutional Economics: A View from the Post-Neo-Classical Perspective.”  «Рост, развитие и изменения: выход за пределы эволюционной парадигмы»  “Human Extension as an Innovative Methodology for Positive Socialisation.” Forthcoming  “The Courage of Extending Humanity.” TEDxLCC April 2013, St. Petersburg, Russia