Non-monetary economics in the social context of the Internet

(abstract of a project)

The evolution of civilization is governed by historical laws revealing the result of collision between the Nature of things and the Nature of human wills. The former is described by physical laws and the latter by the manifold of ideas pursued by human beings. In order to implement an idea one has to use things in accordance with physical laws. But using things involves using or violating interests of other human beings while the one who pursues an idea may be used by other people in their struggle for their purposes. Thus according to cybernetical viewpoint the economy of a society can be described as the human use of human beings.

As an escape from this devastating generality the Nature of human wills provides us with an universal criterion of all things and purposes - the money. Money categories pervade all spheres of life and seemingly give solution to any problem. But still now and again instabilities happen revealing the fact that a lot of things can not be measured in money categories.

Cybernetics explains that any critical situation follows from the lack of control information. So monetary factors are to be blamed for inadequate control of economy. To be more precise monetary factors are not the only ones in political decision-making - strategic or qualitative analysis is basically non-monetary. But final decision depends on social forces of human roles hence mostly on monetary factors.

Why monetary factors can produce social forces? The answer to this question lies in psychology of human behaviour: millions of people will act in support of an idea if they feel that many other people will do the same. So it is the feeling that co-ordinates wills and acts of millions of people to produce a social force. Not all ideas are capable of evoking a social force. But there is one idea that penetrates most important behavioural situations. It is the idea of property. Laws in defence of various aspects of property are enforced only due to spontaneous co-ordination of wills and acts of many people. The forces produced in consequence of one ruling idea we would like to call synergic and the potential work that could be done by synergic forces will be called synergy.

So synergy derived from the idea of property is responsible for the stability of economy, for partial defence of human rights and for supporting the welfare of society. Property is a distinctly monetary category. As we know some non-monetary factors such as social injustice, environmental damage, spiritual values may become critical ones causing menacing instability. So far such instabilities have been a permanent source of gross problems. But with the advent of the Internet there appears a new flux of synergy derived from non-monetary ideas and supported by information flows provided by millions of netted terminals. This new synergy can change the world cardinally.
Two major problems are to be overcome before this synergy is put into effect.

a) How to transfer the right information to millions of uninitiated users?

b) How to explain the influence of non-monetary factors on life?

As a solution to the first problem we suggest a browser which responds to the question of the user formulated in his natural language. The software principles of the browser are outlined in E-mail to Microsoft and here weíll describe the problem of non-monetary economics.
The following items are essential to the problem.

  1. Model of the Nature of things
  2. Model of the Nature of wills
  3. Data sources
1. Material laws (Nature of things)

According to established practice material laws are best described by input-output models including matrices of consumed substances, matrices of accumulated capital and vectors of yield and end products. The stumbling stone in this way of modelling is the high dimensionality of the models which is to be overcome through constraining the dimensionality to 20 by virtue of deep aggregation of the primary set of products. The method of this aggregation is essentially the authorís know-how disclosed in scattered articles.

2. Informational laws (Nature of wills)

Behind any economic phenomenon there is always a certain idea and all economic forces are produced as the result of pursuing some idea. So some energy is coupled with any idea and the distribution of energy over the manifold of ideas describes the state of economy which is being felt by any person. Antagonistic ideas often bring great distortions into existing distribution of energy giving momentum to the whole system in itís pursuing some stabilizing idea. Cybernetics discloses that an economic system always pursues a state of minimal uncertainty and we can use this law to forecast the evolution of economy.

3. Data sources

The described models donít fit into any data statistics. But still aggregated quantities of imaginary products as well as energy coupled with distinct ideas surely have definite virtual existence and can be expressed in values as parameters of the models. These virtual parameters are present in perceptions of people and indirectly they constitute the basis of economic behaviour. Modelling and forecasting economic behaviour will be feasible if the needed parameters are evaluated to conform to the perceptions of people. The following procedure is suggested to accomplish it.

First the parameters are evaluated by expert judging following an ad hoc method and a forecast scenario is calculated bringing the systemís uncertainty (entropy) to minimum. After that a permanent competition is to be maintained in which any expert will be allowed to input his data. If this input minimizes the entropy the expert is stimulated with payment. Incompetent inputs are sure to increase entropy and no stimulus is given. Systemís eventual approach to physical constraints will increase entropy because of additional dispersion of energy and more information will be needed to lessen the entropy. So the process of data collection is to be endless and the number of experts great.

New function of the Internet after adoption of non-monetary economics

If in response to an arbitrary formulated question (i.e. in oneís natural language) any user would be given an answer derived from accumulated scientific knowledge the social struggle for desirable roles will acquire a new feature manifesting itself in the following.

As was explained above this feature means that a new flux of synergy will surge up to change the rate and direction of social evolution.
Similar processes may be noticed in local spheres of activity, e.g. in market situations where non-monetary forces produce quite monetary responses.
Of course the Internet as it is changes the society very fast but there are serious impediments to its efficiency and our effort helps overcome them.

E-MAIL TO Microsoft

17 Feb 1997

Dear Mr. Chris James,
I suggest an algorithm for semantic analysis of an arbitrary
phrase. Below I'll give a description of the algorithm but
first I want to explain why I think such an algorithm can
greatly enhance the efficiency of information technologies.

Working as a scientist in the field of new economic
concepts I found out that a new idea can't reach the brains
of Russian bosses just because they don't have the time to
ponder over possible meanings of words. They can only speak
in their own language and they always want to snatch the
answer to their question in terms understandable to them.
They are very awkward users of computer but still they are
quite capable of keying in a command in their own language.

If the computer be supplied with a software converting
an arbitrary phrase into a meaningful formula the bulk of
information circulating in nets and expert systems could be
directed to higher executives bypassing the filter of administrative
interpreters. This will impart a new quality to the transfer of knowledge.

Verbal description of the algorithm

First we must have a thesaurus of linguistic clusters.
By linguistic cluster (l.cluster) we understand a string having
an established meaning. The thesaurus of l.clusters has
a structure which looks like the following.

     index       l.cluster         length  s.code

1 The United States of America 28 a USA 2 Automobile Industry 19 s tmnds 1 The United States 17 a UStt 3 Productivity 12 o pdctv 4 Automobiles 11 o tmbl 5 Production 10 p pdct 6 quantities 10 o qntt 6 how many 8 o hwmn 7 industry 8 s ndst 5 produced 8 p prdc 8 lorries 7 o lorr 8 trucks 6 o trck 9 cars 4 o cr 1 US 2 a US - linguistic function (see below)
s.code - stenographic code

Note the role of s.code: lorry and truck will not be distinguished
from lorries and trucks (see searching procedure below).

L.clusters with equal indices have the same meaning.
Length of l.clusters will be mentioned in the searching procedure.

Linguistic function

Each l.cluster is ascribed one of the four possible
grammar functions: subject, predicate, object, attribute.
This way l.clusters "distribution" and "distribute" are
both considered as predicate despite the commonly known view.
Generally the grammar is simplified to four notions:
subject - something which is viewed upon as the source
of action, as the carrier of forces, as the cause of phenomenon etc.

predicate - notation of movement, action, changebility, relevancy etc.

object - something which is viewed upon as a receiver of some action or quality.

attribute - anything which selects a part from the whole.

An arbitrary phrase reduced to four l.clusters of the
above mentioned types can be easily understood within the
context of available knowledge. A difficulty arises when a
linguistic function is to be met more than once among the
l.clusters in the given phrase. This will be cared for in
the searching procedure.


Searching procedure

The target of the searching procedure is to fill in the
following semantic vector: s1 s2 s3 s4, where
s1- index of a l.cluster with subject tag extracted from the phrase,
s2- index of a l.cluster with predicate tag extracted from the phrase,
s3- index of a l.cluster with object tag extracted from the phrase,
s4- index of a l.cluster with attribute tag extracted from the phrase.

The procedure starts scanning the phrase to find the
longest l.cluster containing the corresponding s.code sequence.
If it is found it will be extracted from the phrase.
Then scanning is iterated for shorter l.clusters until the
phrase is empty and all indices of the extracted l.clusters
are placed in the four column matrix:

                s11  s12  s13  s14
                s21  s22  s23  s24
                s31  s32   .    .
                 .    .    .    .
where the first column corresponds to subjects, the second -
to predicates, the third - to objects and the forth -to attributes.

Any row of the matrix can serve as a semantic vector as well as
many other rows obtained by swapping pairs of elements
in the columns. The situation may look uncertain.
But this is not so when a sphere of knowledge is concerned.

First, the matrix can not have many rows (most probable
one or two) unless the arbitrary phrase is both long and absurd.

Second, if some rows (semantic vectors) don't make any
sense it will be revealed by the absence of corresponding
handle in the data base and such rows will be eliminated
from the analysis.

Third, a small set of alternative semantic vectors could be
converted into machine-made phrases (with the aid of
the thesaurus) and returned to the user for approval.

Ultimately a unique semantic vector can be obtained and
connected to the corresponding element of data base which
must be constructed in compliance with the hierarchy of knowledge.

I gave a rough sketch of the algorithm. Please excuse
me missing details.


I am interested in finding any possible ways to co-operation
and sure that it will be mutually beneficial.



Deputy Director
Moscow Continuing Education Centre

Russia, 115172, Moscow, Goncharnaya str.,38-58


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