Re: [Fis] Economic Networks

...and the followup to the previous post. The most important question is

6) Can C exist without A and B? Can everyone in the world be C?

----- Original Message -----
From: "Loet Leydesdorff" <loet@leydesdorff.net>
To: "'Igor Rojdestvenski'" <igor.rojdestvenski@plantphys.umu.se>;
<fis@listas.unizar.es>
Sent: Friday, May 06, 2005 8:39 AM
Subject: RE: [Fis] Economic Networks

Dear Igor,

> Question 1: Is it not true that the first paragraph here
> explains the second? NYC simply can afford the goodies listed
> in p2, and Calcutta can not?

Yes, the knowledge-based economy is based on a period of wealth accumulation
in the resource-based economy. At least, this has been the historical order.
Once the transition is underway, it may spread at the global level because
of a different diffusion dynamics. For example, more recently a city like
Bangkok or also many Chinese cities are taking part in the transition.

One should not change the order of cause and effects in the model. The
economic question is, in my opinion: what generates wealth? If wealth were
generated in Calcutta, one could afford to have a technological
infrastructure.

> Question 2: Then if you give Calcutta the same amount of CASH
> (not knowledge, but CASH), it will soon have all the same
> things as NYC?

NO: cash does not bring accumulation.

> If YES then what you call Knowledge Based Economy is simply
> Wealth Based Economy. If NO we are back to protestant ethics
> thing against the Indian ethics.
>
> My opinion: The sewage system and other goodies AS SUCH are
> not the measure of sustainability. They become a measure of
> sustainability ONLY to a degree in which they affect the
> efficiency of the local economic, business processes, when
> they simply help locals make money in some ways.

I am afraid that these mechanisms are locally often beyond control. Giving
people cash may help them in the short run, but not in the long run. The
quality of the (knowledge-based) plan of what to do with the cash, is
crucial.

I hope that this is answering your questions.

With kind regards,

Loet
________________________________

Loet Leydesdorff
Honory Chair of the City of Lausanne (March - July)
Universit� de Lausanne, School of Economics (HEC),
BFSH 1, 1015 Lausanne-Dorigny, Switzerland
Tel.:+41-21-6923469

Amsterdam School of Communications Research (ASCoR)
Kloveniersburgwal 48, 1012 CX Amsterdam
Tel.: +31-20-525 6598; fax: +31-20-525 3681
loet@leydesdorff.net; http://www.leydesdorff.net

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Received on Fri May 6 09:31:54 2005