Shocks and Operation of the Law of Denial of Negation: Dialectics of Self-Movement of the Economy in Statics and Dynamics

Shocks and Operation of the Law of Denial of Negation: Dialectics of Self-Movement of the Economy in Statics and Dynamics

DOI: 10.4018/978-1-7998-4309-2.ch004
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Abstract

The long history of complication of static economy objectively leads it to exhaustion of self-organization potential and to the point of no return – a leap into dynamic state with self-development mechanism. In the new quality, the dynamic economy is regulated by the dialectical law of negation of negation with new functions of shocks in its operation. As for self-organizing systems, shocks are determined to destroy the structural links that weaken systemic integrity. In order, the static system could jump into a dynamic state, shocks realize the first negation, destroying the vertical hierarchy of structural links, and as for the second negation, shocks destroy basic structural level as well. The epochal task is associated with construction of new dynamic systemic integrity on the modern technological base by forming new structure since the previous structural hierarchy has been completely destroyed by shocks embedded into the dialectical law of double negation.
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Introduction

The authors associate the deepening of ideas about the mechanisms of self-movement of systems created by man with the need to identify the main factors that predetermine the formation of the technological paradigm of material production and the design of structural links of the economic system on its basis. These aspects are of particular importance for understanding the processes of self-development in the economy. In fact, the technology and organizational capabilities of its implementation in various spheres of the economy (as well as other spheres of human life) realize the potential of scientific and technological progress. In this context, it is advisable to present all forms of organizing economic activity on a technological basis in connection with the implementation of their structural potential. Considering the category of “economy” as an example, it should be emphasized that each national economic system implements it taking into account its own capabilities. That is why there is no any national economy similar to each other in terms of realizing the possibilities of new technologies and forms of its implementation in economic and other spheres of human activity. Consequently, having dealt with the theoretical model of the combination of the main factors of production on the dominant technological base at any given moment, it is possible, with a deep analysis of the specific features of each national economy, to answer the question of why the performance of the economy is higher in one country and lower in another. Moreover, in this analysis it is necessary to highlight two aspects related to (1) the technological paradigm (and the implementation of the potential inherent in it) and to (2) the mechanisms of organizing technological processes in connection with full implementation of the self-development potential. According to the further presentation of the content of the chapter, the authors put forward the following provisions, which will be further substantiated using dialectical logic.

First, the technological base is formed by the large-scale implementation of scientific and technical discoveries and technological innovations (especially in the field of power plants) in all production processes. On this basis, an organizational mechanism for constructing integration associations of differentiated economic activity is being implemented. In other words, first a new technological paradigm must be formed, and by this time the economic system must have generated dialectically complex elements that are capable of realizing the potential of the new technological revolution. At the same time, dialectically complex structures of the system (Chapter 9) are formed during a long process of self-organizing a static economy, accompanying its complex systemic changes associated with the organization of its both horizontal and vertical structural levels. And only with the maturation of a new technological paradigm (technological revolution) and the exhaustion of the potential for self-organization, shocks mediate the jump of a static system from the stage of self-organization to the stage of self-development (Chapters 6 and 8). Thus, without a new technological paradigm and without the formation of dialectically complex elementary structures in the process of self-organization of a static system, there cannot be a dynamic economy and a mechanism for its self-development (Chapter 11). The technological base for a dynamic economy is of fundamental importance, since it generates much larger-scale opportunities for the integration of differentiated types of economic activity, which is realized in a higher quality of economic effect. It should be especially noted that as a result of the action of the dialectical law of negation of negation, shocks destroy the structure of a static economy. Therefore, the new technological paradigm will always raise the question of the drivers of the structuring process for the new dynamic economy (Chapter 4.1). That is why the outcome of the self-organizing economy, associated with the maturation of dialectically complex elementary structures in a static system, plays such an important role. It is their mission that will include the formation of structural links of a dynamic system in the process of its self-development on the base of the technological revolution 4.0.

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