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“THE ECONOMIC BASES OF
KNOWLEDGE
MANAGEMENT”
Prof. Dr. André MAÏSSEU
World Council of Nuclear Workers
Paris
THE CONVENTIONAL ECONOMIC
FUNCTION
Y (t) = f (K, L) + residue
IS BASED ON ECONOMIC DOGMAS
 The reversibility of economic processes
 Labour as a production factor
 Time as a measure of technical progress
 The additively of the production function
 The existence of a conservative, closed economic
system, whose limited resources are regulated by
deterministic processes
 The mythical existence of a general equilibrium
...
IT DESCRIBES A CLOSED SYSTEM
OF LIMITED RESOURCES RUNS BY
REVERSIBLE PROCESSES BASED ON
THE USE OF AN HAMILTONIAN
MOVING “NATURALLY” TO
EQUILIBRIUM.
SOME PARTIAL LOCAL
INSTABILITITES COULD BE
EXPLAINED BY NON-LINEAR
MATHEMATICAL FUNCTIONS
THEY ARE THE BASES OF THE
“POLITICALLY CORRECT”
SUSTAINABLE DEVELOPMENT
A NEO-MALTHUSIAN VIEW :
 WEALTH IS PRODUCED BY
CONSUMPTION AND
DESTRUCTION OF NATURAL
RESOURCES
 HUMANS ARE PREDATORS !
THIS “POLITICALLY CORRECT”
SUSTAINABLE DEVELOPMENT
THE RECKLESS
EXPLOITATION OF NATURAL
RESOURCES LEAD TO THEIR
DEPLETION FOLLOWING THE
RICARDO LAW OF
DIMINISHING RETURNS
... IN AN ENTROPIC PROCESS
THE “POLITICALLY CORRECT” SUSTAINABLE
DEVELOPMENT
FOR THIS NEO-MALTHUSIAN VIEW:
 WORLD IS A CLOSED SYSTEM
WITH LIMITED RESOURCES
 THE FUTURE OF EARTH WILL
BE JEOPARDIZED IF EVERYBODY
WOULD HAVE THE SAME LIFE
LEVEL AS THE BILLION HUMANS
LIVING IN “DEVELOPPED
COUNTRIES”
DUE TO NUCLEAR ENERGY
 PRODUCTION 
 CONSUMPTION 
 NATURAL RESOURCES
SCARCITY AND POLLUTION 
THE FINAL COLLAPSE OF THE
WORLD IS COMING SOONER!
THE N°1 ENEMY :
NUCLEAR ENERGY
THESE POLITICALLY
CORRECT DOGMAS
DESCRIBE AN ENTROPIC
SYSTEM RUNNING TO THE
FINAL CATASTROPHE
THESE DOGMAS ARE THE
IDEOLOGICAL BASES OF THE
NEOMALTHUSIANS WHICH ARE
PRESENTLY RUNNING THE
COLLECTIVE MIND OF THE
PLANET DECISION MAKERS WITH
AN UNIQUE CONCERN :
HOW TO SLOWDOWN AN ENTROPIC
SYSTEM RUNNING UNAVOIDABLY
TO THE FINAL CATASTROPHE ?
IS IT POSSIBLE TO AGREE
WITH SUCH
PESSIMISTIC
DETERMINISTIC “LAW” ?
LET HAVE A LOOK ON
THESE DOGMAS
 The reversibility of economic processes
IS Y(-t) = -Y(t) ?
NO !
ECONOMIC SYSTEM HAS TO
FOLLOW PRIGOGINE
NON-REVERSIBLE
THERMODYNAMICS
Labour as a production factor
LABOR IS DUAL :
OPUS & LABOR
or
 &  :
ENERGY AND KNOWLEDGE
Y = f(K(t), M(t), U(t), E(t))
 Time as a measure of technical progress
As time is an universal value whose
definition and value are independent of
place, how can one explain the differences
in technological development in the world?
As time is used to quantify the increase in
the efficiency of capital by the notion of
technical progress , how it can be
synonymous with loss of efficiency of
capital by application of depreciation rules.
 Time as a measure of technical progress
THE « WAR » OF
MACRO-ECONOMIC TIME
AGAINST
MICRO-ECONOMIC TIME !!!
 The additively of the production function
AS THE WORKING HOURS ARE DIFFERENT. THIS
HETEROGENEITY OF LABOR DEPRIVES IT OF
THE PROPERTY OF ADDITIVITY.
THE CONVENTIONAL ANALYSES IMPLICITLY
ASSUMES, FROM THE STATISTICAL EFFECT,
THIS PROPERTY CAN BE RESTORED. IT IS NOT
POSSIBLE. (C. HERMITE THEOREM).
SINCE ONE FACTOR DOES NOT POSSESS THE
ADDITIVITY PROPERTY, THE FUNCTION OF
PRODUCTION DOES NOT POSSESS SUCH
PROPERTY.
The existence of a closed and conservative
economic system
THIS DOGMA CONVEYS THE IDEA THAT
IDENTICAL PRODUCTION FACTORS
WOULD BE FOUND AT THE END OF
PRODUCTION AND CONSUMPTION
PROCESSES.
IT CANNOT WITSTAND THE SIMPLE
OBSERVATION OF THE REALITY OF AN
ECONOMIC SYSTEM, WHICH PRODUCES
SCRAP, WASTE AND POLLUTION.
 The mythical existence of a general
equilibrium
As irreversible processes animate the
functioning and evolution of the economic
system, it endowed with a body of
particular properties, allowing for selforganization processes concretized stable
states, occurring far from equilibrium.
Systems in a state of equilibrium
accordingly appear as limiting cases and
not as representative models of real
economic behavior
The existence of deterministic processes
INASMUCH AS THE SYSTEM
POSSESSES AT LEAST THREE
DEGREES OF FREEDOM, THE
PRECONDITIONS FOR THE
APPEARANCE OF CHAOTIC REGIMES
ARE SATISFIED (H. POINCARE).
The existence of deterministic processes
DETERMINISTIC FUNCTIONING ≠
CHAOTIC FUNCTIONING
(1)
The first mode is deterministic. It is described by an
Hamiltonian. For any system not supplied from outside, that is to say
where the input term in x(t) is identically nil, the functioning, which
obviously depends only on its internal properties, is in fact described by
a homogeneous, continuous, derivable production function of
Hamiltonian form. This is the functioning mode that is the setting of
the Ecolo-Malthusian logic, just like conventional economic logic.
These logics inevitably culminate, with varying speed, in the
destruction of the societal system.
(2)
The second mode corresponds to a functioning and an
evolution concerned with economic growth that can indefinitely create
wealth, while respecting the environment. This implies the opening of
the system and incorporation of the flows of new knowledge as inputs .
The existence of limited resources
THERE IS NO LIMIT FOR
KNOWLEDGE
THE REALITY:
A SYSTEM WHERE
IRREVERSIBLE ECONOMIC
PROCESSES RUN EVOLUTION
AND WORKING
WHICH MAY BE “OPEN” BY
KNOWLEDGE FLOWS
Y = f(K, M, U, E)
GESTALTECONOMY
•From regression based on entropic
exploitation of tangible,
TO
DEVELOPMENT BASED
ON NEGUENTROPIC USE
OF INTANGIBLE
•From exploitation of natural ressources
TO THE USE OF HUMAN
KNOWLEDGE
FROM THEORIES
TO MANAGEMENT

SOME PROPERTIES OF
KNOWLEDGE
KNOWLEDGE IS UNIQUE
WHEN ANY PEOPLE
«LEAVES», WE MAY LOOSE
«SOMETHING »
SCHUBERT
« UNFINISHED » 8th SYMPHONY
STENDHAL
« LUCIEN LEUWEN »
KARL MARX
« KAPITAL»’s CONCLUSIONS
SOME PROPERTIES OF
KNOWLEDGE
KNOWLEDGE IS
USED WITHOUT
CONSUMPTION
SOME PROPERTIES OF
KNOWLEDGE
KNOWLEDGE USES
INCREASED ITS VALUE
SOME PROPERTIES OF
KNOWLEDGE
KNOWLEDGE HAS A
COST,
BUT NO FORECASTED
VALUE
SOME PROPERTIES OF
KNOWLEDGE
SAME KNOWLEDGE
MAY BE SHARED BY
MANY
SOME PROPERTIES OF
KNOWLEDGE
KNOWLEDGE IS
NEGENTROPIC
WHAT IS ENTROPY ?
STATE A
STATE B
E=W+Q
S
ORDER = n
E=W
S=0
ORDER = 1
The total loss of efficiency is a measure of the increase in entropy. (de Rosnay)
CLAUSIUS’ ENTROPY
DEFINITION
≠
SHANNON’ ENTROPY
DEFINITION
?
THE UNSOLVED
MAXWELL « DEVIL » PARADOX
THE « MAXWELL » DEVIL MAY INCREASE ORDER
ENTROPY (CLAUSIUS DEFINITION) WITHOUT WORK !!!
EVEN THE GREAT RESPECT I HAVE
FOR MAXWELL,
HE FORGOT SOMETHING:
HIS DEVIL MUST KNOW THE
COLOR OF THE BALL !!!
 KNOWLEDGE
From a « closed » system to an « open » system

KNOWLEDGE IS NEGENTROPIC
(A.Maïsseu and R. Le Duff, L’Anti-Déclin, ESF, 1988)
log E = βigiQie-Qi
INFORMATION FLOWS = δE/δt Se
CLAUSIUS’ ENTROPY DEFINITION ≡ SHANNON’ ENTROPY DEFINITION
PRIGOGINE :
THE EVOLUTION OF ANY SYSTEM
DEPENDS ON WHETHER THE
VALUE OF S (ENTROPY)
IS NEGATIVE OR POSITIVE:
S = Si + Se < / > 0
THERE IS DEVELOPMENT
IF AND ONLY IF :
│ Se│> Si
IN ANY OPEN SYSTEM
NEGENTROPIC FLOWS COULD
REVERSE FROM THE FATAL
DISASTER.
Se < 0 (NEGENTROPY)
IT IS POSSIBLE FOR AN
ECONOMIC / SOCIAL
SYSTEM DUE TO THE USE
OF KNOWLEDGE
Entropy
Negentropy
O.Lange


Y(t) = qj(t)eλjt + (arsDreθsD) X(t)
Y(t) =
S

Prigogine
Yi(t)
+
Si
+
Ye(t)

=

Y(t) =

Se
Cobb Douglas
f(K, L)
S > 0

+

residue
S < or > 0
KNOWLEDGE

THE REAL WAY FOR
SUSTAINABLE DEVELOPMENT
 WEALTH IS PRODUCED BY
ACCUMULATION OF HUMAN
INGENUITY
THE USE OF
KNOWLEDGE
DUE TO USE OF KNOWLEDGE
APPLY TO NUCLEAR ENERGY
 WEALTH 
 WASTE RECYCLING 
POLLUTION 
 THE N°1 FRIEND :
NUCLEAR ENERGY