Abstract
The methodological propositions and categories set out in Chap. 2 are now used to outline a theory of social and historical processes. The theory is centered on the interaction of civilization and functional and ontological imperatives and, more generally, on the operation of the binary ‘necessity’/‘choice-possibility’. Another backbone of the proposed interpretation is the succession innovation-structural reorganization in the motion of human societies. The theory is aimed at providing a consistent representation of the long run behavior of societies, be they stationary, quasi-stationary or modern (i.e. containing an increasing evolutionary impetus). The interpretation is strengthened by a distinction between historical ages based on our methodological categories. Hence an analysis is drawn of some major problems and organizational necessities that the present historical age is obliged to meet but that nevertheless are opposed by powerful interests, an opposition that constitutes a major drama of the present world. Finally, a simple formalized representation of our model of interaction between innovation and structural reorganization, together with its inherent radical uncertainty, is drawn with reference to the economy.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Disregard for the notions of ontological imperative and civilization probably represent the main lacuna of the evolutionary paradigm – both in its Darwinian and Lamarckian form – for the study and understanding of human societies.
- 2.
Faced with far-reaching changes in the general conditions of development, the existing civilizations either give up the fight and make an honourable surrender or, if they resist, are eventually undone by their paralyzing systemic inefficiencies.
- 3.
The following exposition is an analytical structure that can be applied also to various aspects of social development, such as economic development, artistic development, scientific development, and so on.
- 4.
In a way, this succession of the two moments of innovative drive and organizational structuring is found not only in societies but also in the life of individuals and, let us repeat, even in artistic and scientific processes.
- 5.
A deeper meditation on this matter, based on a variety of historical examples, may be found in (Fusari 2000).
- 6.
The role of geography in conditioning the birth of the ancient poleis, as well as the ancient bureaucratic and autocratic empires, is well known.
- 7.
In primitive societies this condition was made possible by isolation from the rest of the world, while in caste societies it has been mainly the effect of the doctrine of karma.
- 8.
See (Ekstedt and Fusari 2010) where, among other things, a formalized model of such behavior is set out.
- 9.
On long waves, see (Fusari and Reati 2013).
- 10.
The less general and less permanent functional imperatives may be said to correspond to historical sub-phases.
- 11.
In a society still incapable of scientific organization, this attraction will come about in what we might call Darwinian forms; that is, will be the product of a universal struggle for life. In societies that have scientifically developed social theory, it will take place in explicit, planned forms.
- 12.
It is evident, in particular, that individuals endowed with exceptional skills are even inclined to work hard for nothing in order that they may use their skills, as many and sometimes dramatic historical examples show. It is a moral and functional mistake to consider those individuals as entitled to receive exceptional monetary rewards that often lead to the dissipation of these exceptional qualities through the corrupting effects of luxury.
- 13.
See Ekstedt and Fusari 2010, chapter 8: ‘Toward a non-capitalist market system; spontaneous order and organization’.
- 14.
(Ietto-Gillies 2012).
- 15.
See the reference in the footnote above.
- 16.
An extended treatment of the question of power may be found in Fusari 2008.
- 17.
- 18.
(Schumpeter 1934).
- 19.
- 20.
For empirical applications, a measure of radical uncertainty can be expressed as the volatility of expectations (see later). Also, the standard deviation of profit rates across firms seems to offer a good variable for the analysis of dynamic competition and the business cycle since it expresses the dimension of adaptive profit opportunities as connected to limited knowledge and market disequilibria.
- 21.
The interaction innovation-structural organization here discussed goes well beyond economics, as previously seen.
- 22.
It may be useful to underline that the measures of dynamic competition based on the rapidity of contraction of the standard deviation of profit rates across firms (as, for instance, in: (Mueller 1990) and others, or (Odagiri 1994)) only consider adaptive competition or, more precisely, parameter b3 of the above system. They ignore the other parameters and hence give a poor approximation to the intensity of competition and economic dynamism, as dynamic competition consists both in innovation and adaptation.
- 23.
The fact that only two observations were out liers, that the model is dynamic, and that there is no reason to assume that the cause, if any, of these anomalies were the same, suggested that the use of a dummy variable was inappropriate.
- 24.
See Fusari, Human adventure, 2000.
References
Aghion, P., & Howitt, P. (1998). Endogenous growth theory. Cambridge, MA: MIT Press.
Akerlof, G., & Shiller, R. J. (2009). Animal spirits: How human psychology drives the economy, and why it matters for global capitalism. Princeton: Princeton University Press.
Alcouffe, A., & Kuhn, T. (2004). Schumpeterian endogenous growth theory and evolutionary economics. Journal of Evolutionary Economics, 14, 223–236.
Ayres, C. (1944). The theory of economic progress. Chapel Hill: University of North Carolina Press.
Backhouse, R. (2000). The ordinary business of life: A history of economics from the ancient world to the twenty-first century. Princeton: Princeton University Press.
Choi, Y. B. (1993). Paradigms and conventions: Uncertainty, decision making and entrepreneurship. Ann Arbor: University of Michigan Press.
Conlisk, J. (1996). Why bounded rationality? Journal of Economic Literature, 34, 669–700.
Depew, B., & Weber, D. (1995). Darwinism evolving: Systems dynamics and the genealogy of natural selection. Boston: MIT Press.
Djelic, M., & Ruack, S. (Eds.). (2003). Globalization and institutions. Cheltenham: Edward Elgar.
Dopfer, K., & Potts, J. (2008). The general theory of economic evolution. London/New York: Routledge.
Dullien, S., Herr, H., & Kellermann, C. (2011). Decent capitalism. A blueprint for reforming our economies. London: Pluto Publisher.
Ekstedt, H., & Fusari, A. (2010). Economic theory and social change. Problems and revisions. London/New York: Routledge.
Ekstedt, H., & Westberg, L. (1991). Dynamic models for the interrelations of real and financial growth. London/New York: Chapman & Hall.
Florida, B. (2002). The rise of the creative class. New York: Basic Books.
Freeman, C. (Ed.). (1996). Long wave theory. Cheltenham: Edward Elgar.
Fusari, A. (1985). Analysis and interpretation of economic, social and historic processes. Rome: Edizioni CREF.
Fusari, A. (1992). Entrepreneurship, market process and economic development. Some theoretical and empirical insights useful for managing the transition period. In W. Owsinski, J. Stefanski, & A. Straszak (Eds.), Transition to advanced market economies (pp. 255–268). Warsaw: The Association of Polish Operational Research Societies.
Fusari, A. (1996). Sviluppo e organizzazione dei sistemi sociali. Una teoria interpretativa dei processi storici. Sociologia,1, 125–178.
Fusari, A. (2000). Human adventure. An inquiry on the ways of people and civilizations. Rome: Edizioni SEAM.
Fusari, A. (2004). The evolution of social systems. Mondoperaio, 6, 82–88.
Fusari, A. (2005). A model of the innovation-adaptation mechanism driving economic dynamics. A micro representation. Journal of Evolutionary Economics, 15(3), 297–335. http://dx.doi.org/10.1007/s00191-005-0246-z
Fusari, A. (2008). Reason and domination. Ethics, politics and economics in modern global society. Cosenza: Marco Editore.
Fusari, A. (2013). Radical uncertainty, dynamic competition and a model of the business cycle: The implication of a measure and explanation of what is supposed non-measurable and non-explainable. International Journal of Business and Management, 8(12). doi:10.5539/ijbm.v8n12p. URL: http://dx.doi.org/105539ijbmv8n12p
Fusari, A., & Reati, A. (2013). Endogenizing technical change: Uncertainty, profits, entrepreneurship. A long term view of sectoral dynamics. Structural Change and Economic Dynamics’ (SCED), 24, 76–100. http://dx.doi.org/10.1016/j.strueco2012.06.004
Georgescu-Roegen, N. (1971). The entropy law and the economic process. Cambridge, MA: Cambridge University Press.
Gilboa, I. (Ed.). (2004). Uncertainty in economic theory. London/New York: Routledge.
Hanusch, H. (1988). Evolutionary economics: Applications of Schumpeter’s ideas. Cambridge: Cambridge University Press.
Helpman, E. (2004). The mystery of economic growth. Cambridge, MA: Harvard University Press.
Holland, J. (1995). Hidden order: How adaptation builds complexity. Cambridge: Perseus Books.
Ietto-Gillies, G. (2012). Transnational corporations and international production: Concepts, theories and effects. Northampton: Edward Elgar.
Kauffman, S. (1993). The origin of order: Self-organization and selection in evolution. Oxford: Oxford University Press.
Kirzner, M. I. (1973). Competition and entrepreneurship. Chicago/London: The University of Chicago Press.
Kirzner, I. M. (1985). Discovery and the capitalist process. Chicago/London: The University of Chicago Press.
Knight, F. A. (1921). Risk, uncertainty and profit. Boston: Cambridge University Press.
Langley, P., Simon, H., Bradshaw, G., & Zytkov, J. (1987). Scientific discovery: Computational exploration of the creative process. Cambridge, MA: MIT Press.
Latsis, J., de Larquier, G., & Bessis, P. (2010). Are conventions solutions to uncertainty? Contrasting visions of social coordination. Journal of Post Keynesian Economics, 32(4), 535–558.
Lotka, A. (1925). Elements of physical biology. Baltimore: Wilkins & Wilkins.
Lucas, R. E. (1981). Studies in business cycle theory. Cambridge, MA: MIT Press.
Metcalfe, J. S. (1998). Evolutionary economics and creative destruction. London: Routledge.
Mueller, D. C. (Ed.). (1990). The dynamics of company profits. An international comparison. Cambridge: Cambridge University Press.
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA/London: The Belknap Press of Harvard University Press.
Odagiri, H. (1994). Growth through competition, competition through growth. Oxford: Clarendon.
Ostrom, E. (2005). Understanding institutional diversity. Princeton: Princeton University Press.
Peschel, M., & Mende, W. (1986). The predator-prey model. Do we live in a Volterra world? Wien/New York: Springer.
Postan, M. M. (1971). Fact and relevance. Essays on historical method. London: Cambridge University Press.
Richta, R. (1969). Civiltà al bivio. Milan: Franco Angeli.
Runde, J. (1998). Clarifying Frank Knight’s discussion of the meaning of risk and uncertainty. Cambridge Journal of Economics, 22(5), 539–546.
Scazzieri, R., & Marzetti, S. (Eds.). (2011). Fundamental uncertainty: Rationality and plausible reasoning. New York/Basingstoke: Palgrave MacMillan.
Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.
Schumpeter, J. A. (1939). Business cycles. A theoretical, historical and statistical analysis of the capitalist process (2 Vols.). New York: McGraw-Hill.
Sen, A. (1999). Development as freedom. Oxford: Oxford University Press.
Shackle, G. L. S. (1990). Time, expectations and uncertainty in economics. Selected essays (J. L. Ford, Ed.). Aldershot: Edward Elgar.
Solow, R. (1970). Growth theory: An exposition. Oxford: Oxford University Press.
Toffler, A., & Toffler, H. (1995). Creating a new civilization: The politics of the third wave. Atlanta: Turner Publishing, Inc.
United Nations Development Programme. (1999). Human development report (Vol. 3). Oxford: Oxford University Press.
Vico, G. (1971). Philosophical works. Florence: Sansoni.
Volterra, V. (1926). Fluctuations in the abundance of a species considered mathematically. Nature, 118, 558–560.
Wolf, M. (2008). Fixing global finance. Baltimore: Johns Hopkins University Press.
Wymer, C. R. (1993). Escona program, manual and documentation (mimeo). WYSEA Systems Estimation and Analysis (computer package).
Ziman, J. (Ed.). (2000). Technological innovation in an evolutionary process. Cambridge: Cambridge University Press.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2014 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Fusari, A. (2014). Social Development and Historical Processes. In: Methodological Misconceptions in the Social Sciences. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-8675-1_4
Download citation
DOI: https://doi.org/10.1007/978-94-017-8675-1_4
Published:
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-017-8674-4
Online ISBN: 978-94-017-8675-1
eBook Packages: Humanities, Social Sciences and LawSocial Sciences (R0)