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The Roots of Inflation: a Functionalist Approach

We would like to give access to a research work on currency and inflation that is ongoing at The Unicist Research Institute since 1990. This research is based on the unicist functionalist approach to economics. The objective of the research led to the conclusion that inflation is functional to different disequilibria of an economic system until it becomes chaotic, generating hyperinflation where the agents involved do not consider the functionality of the social system to ensure their own survival.

Based on this point of view of inflation, the present inflation of the world was generated by the disequilibria of the COVID-19 crisis that drove to the need of generating financial resources to compensate for the impossibility of generating value.

The end of the crisis establishes a new starting point for the economic systems that still needs to be assimilated. The war between Russia and Ukraine is another structural disequilibrium because it affected the world-economic system.

Inflation and deflation are equilibrators of the distribution of value in an economic system driven by structural disequilibria in macro- or microeconomics.  Inflation is multiplicated by the expectation of inflation that works as a catalyst to accelerate the speed of changes in prices.

The growth of the inflation rate ends when a new equilibrium is accepted in an economic system. It is recommended accessing the origins of the hyperinflation of Germany in 1923 and Hungary in 1945 which have totally different origins, one related to macroeconomic problems and one driven by structural microeconomic disequilibrium.

At the end, inflation is driven by the macroeconomics agents, but the origin is not necessarily there. For example, now the conflict between Russia and Ukraine is the origin of the inflation in Russia while the inflation of Argentina is generated by the structural disequilibrium of its productive system.

Structurally speaking, different economic systems generate different causes for inflation, which necessarily end in macroeconomic disequilibrium although they have multiple origins. Solving the structural origins of inflation allows rebalancing the economic systems and making inflation unnecessary.

We are now preparing an Open International Conference to expose and debate the functionalist approach to inflation. If you are interested in participating, please contact: n.i.brown@unicist.org  

Peter Belohlavek
The Unicist Research Institute

NOTE: The Unicist Research Institute has been, since 1976, the world-leading research organization that introduced the functionalist approach to science to manage the functionality of the real world. www.unicist.org


The Unicist Evolutionary Approach is the Antidote to Facileness in Leadership

Facileness degrades, marginalizes and kills social evolution. As is has been researched, facileness is the root cause that underlies involving environments and business failures. It oversimplifies reality by transferring risks and costs to others and avoiding conflicts. This makes the solution of the root causes of problems unnecessary and degrades the value propositions, the reliability and the brand attributes of any culture or business.

The Unicist Evolutionary Approach

While facileness generates involution through short-term maximization, the unicist evolutionary approach drives and catalyzes evolution. 

The unicist evolutionary approach avoids facileness by designing processes as a unified field, using value adding strategies, building objects to ensure results and developing pilot tests to confirm their functionality and learn from the environment.

The concepts and fundamentals that underlie social and business functions are the root-drivers of their functionality. The eventual dysfunctionality of the fundamentals is the root-cause of the problems of these functions.

This is an approach that catalyzes the adaptability of cultures and business, their speed of growth in an environment of customer orientation and sustainability. It is the necessary microeconomic approach in the 4th Industrial Revolution.

Unicist Press Committee

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research where the Unicist Evolutionary Approach was developed. 




Social Catalysts, the Accelerators of Social Evolution

All developed, developing and emergent cultures use social objects to foster their evolution. Social objects are “encapsulated” entities that regulate the functionality of cultures. Laws, regulations, and social, economic and political systems, including institutions, and organizations of any kind, are examples of social objects.

Objects in Adaptive Environments

The social functions are regulated by driving, inhibiting and entropy inhibiting objects. The catalysts are part of the restricted context of the process that is being catalyzed, while the gravitational objects are part of the wide context. These catalysts need to be redundant with the gravitational objects that sustain the basic framework of the functions involved.

In developed cultures, legality and legitimacy tend to be overlapped. These cultures use driving, inhibiting, entropy inhibiting, catalyzing and gravitational objects that establish the framework and administrate the operational rules of the environment. See “Microeconomics driven Development” www.unicist.net/economics/participate

The gravitational objects, like the constitution of a country, establish the basic framework of a culture considered as a system. The catalyzing objects establish the acceleration that ensures the synchronicity of actions for the evolution of any adaptive system.

The drivers, inhibitors and entropy inhibitors establish the operational rules that have to be followed to be part of the system.

Unicist Press Committee

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research where the Unicist Evolutionary Approach was developed. 


Facileness, the Driver of Involution

Facileness is an addiction that is installed in over-adaptive environments, which drives their stagnation and/or involution. This behavior is driven by the submission to the fallacious myths of a society, is acted out by the actions of transferring risks and costs to others and is sustained by the avoidance of conflicts.

Facileness

Facileness is necessarily short-term oriented and cannot deal with structural approaches, institutionalization, the root causes of problems or strategic approaches to reality.

Proposing utopias, making shortcuts, subjectifying, “buying time”, lying and denying facts are typical actions in facileness driven environments.

Facileness, as an addiction, is fully unconscious and develops the necessary defenses to maintain the status quo while following the fallacious myths of the environment.

As an addiction, it creates a parallel reality in the world where only those who share this addiction can participate as leaders.

The submission to the fallacious myths proposes behaviors that avoid facing the weaknesses that cannot be accepted by the environment.

Social Facileness

This social behavior is installed as an addiction in environments that are natural resources dependent without assuming an active role to increase the value of the resources.

It is also installed in extremely poor over-adaptive environments.

Facileness profits by transferring risks and cost to others, which installs distrust in the environment and reinforces an extremely individualistic behavior.

As conflicts are drivers of changes, this addiction requires avoiding conflicts to ensure that the parallel reality is not endangered.

The “Peers in the World” Program to minimize Facileness

Minimizing facileness is a basic condition for social development and requires that the leaders of the environment feel that they are “Peers in the World”, which do not need to be submissive or oppositional to evolve.

This requires that they have an adaptive attitude, which means that they feel they can influence the environment while they are influenced by it.

The development of a “Peers in the World” attitude requires promoting a strategic approach to reality among young leaders of the environment in a way that they can perceive short-term results while a long-term approach is introduced.

You can access the Transgenerational 50-year Project at:
https://www.unicist.net/economics/participate

Peter Belohlavek

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research where the Unicist Evolutionary Approach was developed. It was one of the precursors of the Industry 4.0 concept.


Unicist Country Scenario Building

At a conceptual level, there are three integrated scenarios that drive the evolution of a country: the social scenario, the economic scenario and the political scenario.

It is not easy to apprehend the concept that the economic scenarios are the drivers of the new utopias of a culture. The active function fosters utopias, the energy conservation function is based on cultural myths and the concepts of social scenarios are taboos.

Administrating the evolution of a country requires integrating the social, economic and political scenarios in their oneness. Evolution is inhibited if any of the concepts that are included does not achieve the necessary threshold of energy in order to influence the environment.

There are different levels of concepts and fundamentals that drive the evolution of countries.

It has to be considered that these fundamentals are based on the dominant lifestyles (which are consistent with the archetype), work attitudes and technologies.

Lifestyles define the boundaries of social scenarios, work attitudes define the boundaries of economic evolution and the technological scenarios define the evolution of ideologies.

Below the fundamentals of social, economic and political scenarios and the lifestyles, work attitudes and technologies there is a cultural archetype that establishes the core values of a culture.

The cultural archetype establishes the taboos that need to be respected, the utopias that need to be fostered and the myths that need to be followed in order to be an accepted member of the society.

The Structure of a Country Scenario

The archetype defines the transcendent goals of a culture. Although the archetype is evolving, it has to be considered as a driver and a limit for social behavior.

The educational system defines the possibilities for social evolution and transforms the transcendent goals included in the archetype into operational solutions and behavioral patterns.

The institutionalization of the different roles in a country provides the energy conservation context that makes the achievement of the transcendent goals possible.

Maximal Strategy

The expansion of the boundaries of a culture is driven by the economic scenario. The purpose of the economic scenario is the generation of wealth, which implies having the necessary innovative technology and a learning driven educational system within a context of value adding work.

Wealth generation becomes meaningful when there is a context of distribution. The economic social added value covers the basic materialistic needs of the members of a culture.

It includes work in terms of employment, the satisfaction of the needs of a population, while there is a consistency of the distribution that recognizes the value that is being generated and the benefits that are being distributed.

An evolutionary environment has been built when this context is given. Then the economic activity needs to generate materialistic growth that ensures wealth generation and provides an expanded starting point for the coming generations.

It has to be considered that growth generation is the catalyst of the evolution of a country. As such, paradoxically, when it is below the necessary threshold to sustain stability, it works as an inhibitor of evolution.

Minimum Strategy

The political scenario provides the minimum strategy of a culture. It has to be considered that the nature of the political scenario aims at ensuring the existence of social capital, social justice and social mobility.

Social capital is defined by the competitiveness to grow and cooperation to build synergy within the culture to sustain the national identity of a culture.

Social justice is what upgrades the ethics of a culture by generating equal opportunities, providing social repair when damages have been produced and social punishment for those who disregarded the rules of the culture.

Social mobility is the entropy inhibitor of a cultural scenario. It minimizes the waste of energy because it provides a reward for the efforts and actions of the community.

Social mobility implies the existence of social competitiveness, equal rights and an access to reference groups based on value generation. When social capital becomes stable, the goals implicit in the archetype can be defined.

Peter Belohlavek

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research to deal with adaptive entities and became a private global decentralized leading research organization in the field of adaptive systems and environments. It was one of the precursors of the Industry 4.0 concept.


Understanding the nature and consequences of Economic Freedom

This work deals with the conceptual structure of economic freedom and its integration with economic democracy. It includes no ideological considerations or influence. It is based on the unicist approach to complexity science, which uses a pragmatic, structural and functionalist framework.

Economic Democracy EthicsThere are prejudices and fallacious myths installed in the world dealing with the concept of economic freedom. Unfortunately, no literature could be found that approached economic freedom based on its concept to define its nature (the “stem cell” of economic freedom). The existing approaches are strongly influenced by ideological positions.

This introduction, based on an excerpt from the book “The Future of Democracy and Capitalism” provides a conceptual approach to capitalism, going beyond the beliefs deposited on facts by people to understand the nature and dynamics that define the present and future of Capitalism.

It can be said that Greece was the origin of political democracy in the West but was not an economic democracy because in those times the expansion of cultures was driven by military actions.

It can also be said that the United States of America are a paradigmatic example of evolutionary democracy that integrates social democracy, economic democracy and political democracy to manage the domestic affairs.

As an evolutionary democracy, the United States of America could be taken as a paradigmatic example of Economic Freedom and Capitalism. But Economic Freedom and Capitalism cannot be imported or exported. The unique structure of values that are implicit in a culture’s archetype are the demonstration that it is meaningless to copy any model to a foreign culture that has different structural values.

The understanding of the nature of economic democracy and capitalism allow defining the particular way in which a country can deal with economics and economic democracy considering its own characteristics.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.


Unicist Anthropology – Discovery of Collective Intelligence

The discovery of collective intelligence allowed building a bridge between the archetypes and lifestyles of cultures and the social, institutional and individual behavior. Individual intelligence is always empowered or inhibited by the lifestyle of a culture which is driven by the fundamentals of the archetype.

Collective IntelligenceCollective intelligence is the driver that allows building intelligent synergy among the members of a society to better adapt to the environment.

It is easily noticeable in animals, such as ants and rats. It empowers their survival capacity and the expansion of their species.

Collective intelligence provides behavioral patterns that establish the cohabitation rules of a society and defines who is a member and who is an alien. It includes the transcendent and immanent aspects of behavior.

The collective intelligence is defined by the archetype of a culture and becomes materialized in its lifestyle.

Although different groups of a society might have different habits according to their possibilities, there is a common lifestyle defined by the collective intelligence that establishes the patterns of acceptable behavior. Those who do not follow these patterns are considered aliens.

Collective intelligence is the intelligence that allows social capital building and institutionalizing.

The collective intelligence works as a catalyst and as a gravitational force for individual intelligence. But the collective intelligence can also work as an inhibitor for the actions that can endanger the rules of a society.

The level of collective intelligence defines the level of development of a culture. Thus the power of a culture is given by the functionality of its archetype in the environment. The Japanese culture is a paradigmatic example of collective intelligence.

Apprehending and understanding the nature of a cultural archetype is necessary whenever there is a need to develop an action to exert influence in an environment. If the acceptable patterns of behavior are not taken into account, the individual will be an alien.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.


National interest is the ultimate purpose of globalization

According to the unicist logical approach to globalization, this is not an economic phenomenon but a comprehensive phenomenon, which encompasses economic aspects as drivers to action. It is based on a diplomatic power upheld by the organization of the State, which grants an advantage to countries with mature political systems.

Sustainable GlobalizationGlobalization has cultural aspects that constitute a basis through the myths of those nations which are globalizing, and which materializes in the power of each culture’s language.

On the other hand, it promotes the development of peoples through the compatibility of shared interests and through the search for an ideology that allows integrating the development needs.

Finally, globalization seeks to facilitate the integration of individual interests. These individual interests basically foster economic integration and represent a starting point for a sustainable globalization.

Sustainable Globalization

Sustainable globalizations are those that have a cooperation structure that carries a national interest as its ultimate purpose; they present global development as an objective and count on a strong diplomacy to prevent conflicts from developing into wars.

Their underlying condition of integration is given by their members’ shared competitiveness, and a social capital among institutions that make them functional to the accomplishment of the community’s objectives.

In these cases a strong feeling of cooperation prevails, which ensures that such competitiveness be functional to the integration of institutions among its members.

Unstable Globalization

Economic globalizations are those that seek a region’s development through the existence of a shared interest, and which are mounted on a dominant ideology as a basis of an economic globalization. They include diplomacy to obtain benefits.

They are based on the need to ally in light of a common enemy or by imposition of one of its members as a result of military, economic or religious dominance.

Unstable globalizations have lasted centuries, but since the structural modification of communications and the speed of technological evolution, they tend to disappear in much less time.

Conclusion

In order for a globalization to be sustainable it requires that the national interest be covered. There has to be a strong State permitting a powerful diplomacy and there must also be, within the vital space within which the culture operates, a globalization concept that permits to include other cultures.

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. http://www.unicist.org


Utopias Sustain and Foster the Economic Behavior of Cultures

Behind any economic action there is a utopia that sustains it. This implies that the drivers of utopias are the materialistic needs of a culture or an individual.

Unicist Ontogenetic Map of UtopiasThis research triggered the extreme criticism from some segments of “intellectuals” or “spiritualists” who consider that the utopias come from the world of the ideas or from the spirit.

This research demonstrated that they are built as ideas but triggered by materialistic scarcities.

That is why those countries where economic freedom is fostered evolve faster because new utopias are permanently triggered by the participants of the economic activity.

The Unicist Ontological Structure of Utopias

Utopias can be seen from two different standpoints:

  1.  The dysfunctional
  2.  The functional

From the dysfunctional standpoint utopias are a sort of “fantasies”. From a functional standpoint they foster the evolution of cultures.

Utopias’ purpose is to upgrade cultures opening the possibilities of actions and providing a catharsis to sustain evolution.

A social utopia is functional to the next level of evolution. The upgrade of a culture happens because a utopia is installed to overcome the implicit weaknesses of a specific situation of a culture.

This opens new possibilities of action, establishing at the same time a cathartic context that allows failing before achieving the upgrade of the culture.

From an operational essential standpoint, utopias open possibilities, allowing cathartic “explosions”, introduce motivation for action and establish shared goals for the future.

This integration has functional and dysfunctional aspects. But illusory goals should be considered together with possible goals in their oneness.

From a strict standpoint, a maximal strategy that depends on the external environment of the society is somehow an illusory goal to be achieved.

In the field of utopias, illusions, actions, doing and communicating are nor separated concepts but one to achieve the final goal that is upgrading a society.

Operationally, four segments of utopias can be described:

Illusory utopias

Illusory utopias are those that basically provide catharsis to the members of a society. Involving cultures are driven by illusory utopias based on heroic projects that will “change the history” (typical title for illusory utopias).

Illusory utopias become functional when they are part of challenging and possible projects, providing the extreme possibilities to go beyond the boundaries of a situation.

Hypothetic utopias

They are the rational utopias that are built upon theoretical possibilities developing projects that should be achievable. Hypothetic utopias provide a framework of truths to sustain their ideas. They are necessary to widen the boundaries of the possibilities and sustain the need of freedom of dependant societies.

Hypothetic utopias allow people to think that they will be able to change a situation anytime based on their rationalized social intentions.

Possible utopias

Possible utopias are those that allow building synergy in societies. This synergy is based on a shared project that can be done with the integration of the members of a culture.

Possible utopias imply prices to be paid and the exclusion of the aliens. Aliens are those who do not share the vision of the possibility.

These utopias are basic for growth and provide the necessary cultural context to sustain the culture without changing it. Thus they are natural to evolving leading cultures.

Challenging utopias

Challenging utopias foster cultural change. They are based on action and on expanding the boundaries of a culture.

They necessarily include illusory and hypothetical aspects in order to expand the possibilities of what can be done. Challenging utopias are driven by the heroes of cultures.

Evolving cultures and emerging cultures are driven by these challenging utopias developed by heroes.

Those cultures that have not solved their identity in their environment cannot accept authoritative roles and cannot “use” heroes to evolve. They fear the power of heroes and therefore they naturally transform challenging utopias into illusory utopias.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. http://www.unicist.org


Conceptual Economy is a Macro-Micro Approach

This is a synthesis of the works on conceptual economy developed by Peter Belohlavek to provide a guiding idea of how to deal with real economy considered as a complex adaptive system. It is part of the conceptual model for country scenario building and forecasting.

Conceptual EconomyThe development of the conceptual approach to country scenarios, which included conceptual economy, started in the ’70s and its core aspects were finished in the ’90s.

It was triggered by the need to find a structural solution to the multiple failures in applying economic solutions to different countries. The objective was to find the concepts that allow adapting the systemic economy to the true drivers of economics considered as a complex system managing its unified field.

A) What changed?

  1. The expansion of countries is not based on military occupation anymore. The military became a dissuasion power.
  2. Democracy became the next utopia in the world, which established the basis for the era of participation.
  3. The existence of several expansive poles and the creation of the European Union.
  4. The transformation of economy into the driver for local and international expansion.
  5. The role of banks in the administration of monetary circulation.
  6. The influence of International Institutions to prevent or palliate local economic/financial crises.

B) What remained unchanged?

  1. The fact that the USA is the leading economy in the world.

C) What made conceptual economy possible?

  1. The discovery of the logic that underlies nature.
  2. The discovery that individuals’ actions are driven by the concepts they have which are cross-cultural and timeless.
  3. The unicist anthropological modeling of collective unconsciousness and the consequent country (cultural) archetypes.
  4. The discovery that the archetype of a culture and the concept of work it has, establish the context of the unified field in which economic behavior becomes possible.
  5. The discovery of ethical intelligence as the deepest driver of individual and social behavior and its consequences in economics.
  6. The discovery of thee concepts and fundamentals that drive economic behavior.
  7. The discovery that the concepts of macro and micro economic behavior are homologous.
  8. The discovery of the unified field of economics.
  9. The development of a logical solution that allowed transforming a conceptual approach to the complexity of economics into a systemic approach to deal with variables and cause-effect relationships.
  10. The discovery that extreme consumerism, extreme communism and authoritarianism foster over-adaptive behaviors and survival ethics and stagnant survival ethics.

To request more information please contact n.i.brown@unicist.org

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/economics/wp-content/uploads/2014/11/turi.pdf