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Theoretical and Applied Economics
No. 4 / 2008 (521)

The emergence of dogma

„Adam Smith's analysis constitutes
a totally unsuitable starting point for building a theory of development.”
Robert Brenner

The emerging European countries draw to attention the inconsistencies of Economics. The special type of evolution generated by the integration contradicts the main assumptions which have hypothesis value for strategy and economical policies.

The exceptional character of the transformations implied by the integration process originates in the dislodging of equilibriums functionalized by the condition of underdevelopment. The historical accommodation to the persistence of crises circumscribed to the periphery was manifested as a second nature to development, with low equilibrium marks taken as normal performances of the system. Because efficiency-wise nothing more could be done, what has been realized was declared as a guideline for efficiency. In an accommodating way, the equilibrium was fixed on entropic criteria in order to flatten disequilibrium. Anyhow, the disequilibrium was not perceived as a possible break-up with the low state of functioning of the economic system. The idea of the favorable disequilibrium - a sort of Schumpeterian destruction - has avoided the area of the working hypotheses for strategies.

Getting fixated in the periphery - reproducing poor performances - has thus occurred naturally. Coming out of the periphery seemed a heresy. In no other way can there be explained the absence from the projects of the theme of the escape from periphery, as a formula of the own national and regional assumed effort. The known forms of escape were limited to the individual solution of abandoning ship. Being in the integrative European system's trailer truly reveals the dimension of the state of periphery. But also the difficulties of justifying trends in the Economics' array of explanations appear at their full scale. Separating the evolution of correlative terms, like the increase of salaries or the growth of productivity, is shaping to be the most uncomfortable challenge for the orthodoxy of Economics. Chains of effects with no rational support multiply in economic theory. There is no doubt - or there should be less and less doubt - that the effects specific to integrative systems modify behaviors which seemed regularities to closed systems, as well as to semi-opened ones or even open ones as national economies were, at different stages. And this is even more poignant as an integrative system also includes the periphery.

The strong force of integrative systems - maybe until now demonstrated only by the European Union - has as a consequence the lifting of the periphery to the performance levels of the nucleus. The concrete expression of the strong force of the European Union means the burning of stages in order to the escape from periphery. It is obvious that this supposes the defiance of classical correlations: salaries grow faster than productivity.

The miracle is exactly due to the strong force of the system, also combined with the force of attraction - perceived including in its psychological dimension. The escape from periphery takes the shape of a creative destruction of the orthodox correlations with which Economics operates. The overthrowing of economical knowledge in the field of correlations bears a compensational aspect which needs pointing out: the equity trends are implacably accompanied by the rationality trends. The unbeatable example is that the tendency of growing the salaries faster than the increase in productivity has as a flip-side the tendency of an accelerated increase of prices compared to the increase of salaries. If the speed of convergence of salaries is greater than the speed of convergence of productivity, the speed of convergence of prices is bigger than the speed of convergence of salaries.

The escape from periphery as a project of integration into the E.U. looks like a receding advancement: two steps forwards, one step backwards! What matters, essentially, is not the number of steps but the speed to which they are executed, for the advancement from the periphery towards the nucleus - as a level of performance - to take place according to people's expectations, as a sense of cohesion.

In the interval defined by the escape from periphery the norms of interpreting dictionary economical knowledge are being abrogated.

Replacing the familiarity of equilibrium with the option for favorable disequilibrium, the only one in concordance with creative destruction, revolutionizes a state of spirit which would otherwise reproduce the state of underdevelopment.

There where surplus exists, the market manifests itself between parentheses or not at all.

Hic igitur lapis non est lapis.


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The emergence of dogma
Marin Dinu

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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