Chapter 1 – The Optimized Economy as an economic model
1.1 Three levels of the economy
The economy, due to the fundamental role material goods play in human life, both individually and socially, is a key element of human civilisation.
The most important link in the economy is not the property relations, even though they are the ones that, for historical reasons and human nature, evoke the most emotion and thus focus the most attention on themselves, but the broader strategy of producing material goods.
Meanwhile, the economy over the course of history has become hostage to property relations and the associated numerous, ideologised disputes over economic systems (including private property versus state property) and economics as such, often becoming an irrational and inefficient means to an end, and sometimes even an end in itself, which should be the development of civilisation and the well-being of the human species.
It is an appropriate, i.e. optimized and thus effective strategy of producing goods based on intellectual potential, or more precisely on broadly understood science: research and development activities, new technologies and investments in these aspects – with a special role of the public sector in this respect, also in the context of creating new economic entities – and taking into account rationality, social needs, availability of natural resources, environmental conditions or, finally, the very quality of produced goods, that should be the main driving force and the key to achieving prosperity and civilisational success. It is at this level/stage of the economy (LEVEL II in the graphic below) that the greatest opportunities are found.
Graphic 1 – Three levels/stages of the economy
Graphic 1 for preview and download as PNG, SVG and TXT file
State involvement in such processes is important not only from the point of view of organisational and financial capacity, but also because of institutional, scientific and educational potential. However, it is important that such projects are carried out both by state actors at central and regional level and by private actors, as well as through cooperation and public-private partnerships.
More important than the forms of cooperation in the implementation of these projects is the development of an appropriate culture in society and sustainable and good standards for the symbiosis of economy and science, not focused solely on a quick return and short-term financial gain, but maximising the effectiveness in achieving the overall benefits of civilisation.
1.2 Examples of the use of science in the economy
The science-based economy is not an abstract project, but a proven method in, among others, South Korea, where a great leap in technology and civilisation has been achieved through the use of a number of innovative projects, implemented in the country's economy. Although the methods used in this case themselves can be debated, in principle, South Korea is a practical example, taking the right direction.
Another very tangible and symptomatic example of the tangible benefits of directly applying scientific processes to the economy, permanently changing the standard of living of societies and every individual, was the Manhattan Project. This historic project had an enormous impact on the reality after the Second World War, giving the world global peace for many decades. Despite its partly destructive nature, it also contributed to a major technological leap in civil nuclear power and the energy sector as a whole, with an impact on the efficiency of the entire economy that is difficult to overestimate.
This example makes it perfectly clear that the economy alone is not the tool to guarantee the best pace of civilisational development, using market systems alone, despite the intellectual potential that man possesses which is necessary for this. Market mechanisms on their own are not capable of perceiving and, above all, realising undertakings with such potential. The free market process, for objective reasons and its natural limitations – including financial constraints – operates on the basis of a simple algorithm of the law of supply and demand. It is therefore characterised by its rather limited scope and the environment in which it operates. This phenomenon does not only apply to projects on such a large scale, but also to projects of greater complexity than those it handles on a daily basis.
The Apollo Programme, responsible for the landing of man on the moon, can be taken as another example, which resulted in the creation or modernisation of many technologies already in place and subsequently used in various industries.
The graphic below illustrates the advantage of economic investment using a scientific base over the classic model, which is geared solely towards a quick rate of return.
Graphic 2 – Comparison of two investment models
Graphic 2 for preview and download as PNG, SVG and TXT file
1.3 Public sector involvement
Certainly, in constructing a science-based model, there is a need to strike the right balance between the fundamental issue of responsibility for the general good and the public sector and the economic freedom of the private sector, while maintaining cooperation and dialogue between all parties and social control over these processes in the spirit of democracy and respect for the human rights of the individual and society. There is also a need for systemic and comprehensive solutions to successively increase the involvement of science in the economy on a scale many times greater than is currently the case, as well as multidimensional public sector participation in this regard.
Public and private property operate in a dichotomy, complementing each other. They reflect well human nature, which needs different characteristics of activity, including at the behavioural level, where there is a balance between herd and individual activity. However, it is worth bearing in mind that in an increasingly complex world, ownership as such can take on a character beyond the classical models.
In addition to the competitive element, the collaborative element is equally important. It is optimal when the synthesis of all types of activities ultimately results not in their collision but in their synergy.
Contrary to intuition, in addition to strictly humanistic reasons, such a model also has a very tangible and practical justification. In the long term, it benefits everyone, because the world we live in is a system of interconnected vessels with a tendency to deepen all interdependencies, and new technologies and scientific achievements, spread globally and permanently improve living standards.
It should be borne in mind that economic freedom is a very important element in the context of the implementation of creative and scientific processes, giving freedom and independence of action. On the other hand, processes initiated by the public sector or public-private partnerships may guarantee increased competitiveness in achieving not only better financial results, but, above all, by forcing an increase in the standards and quality of the final results obtained, translating directly into civilisational development in its entire spectrum, and thus into the optimal development and well-being of the entire, human population.
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