BILKENT UNIVERSITY, INSTITUTE OF WORLD SYSTEMS,
ECONOMIES AND STRATEGIC RESEARCH (DSEE)
1st Winter Summit at Anatolian Summit (WISAS)
Under the Auspices of Silk Road Universities Consortium
Collaborative Projects on Tourism, Sports, Bio-Diversity and Global Changes
Atatürk University
Erzurum, February 23 – 26, 2012
INTERACTIONS OF WORLD – REGIONAL DYNAMICS
AND THE ROLE OF UNIVERSITIES AS A CATALYST
Orhan Güvenen1
[email protected]
www.dsee.bilkent.edu.tr
1 Director of the Institute Of World Systems, Economies And Strategic Research (DSEE),
Chairman of the Accounting Information Systems Department, Member of the Executive
Board and Chairman of the Advisory Committee on Strategy, Economy and Industry of
“National Nanotechnology Research Center – UNAM”, Invited Professor of the University of
Paris-Pantheon, World Academy of Art and Science Fellow (WAAS), President of “Applied
Econometrics Association”.
© O. Güvenen 2012 / II
TABLE OF CONTENTS
I.
THE STRUCTURE OF SOCIETY AND WORLD DYNAMICS IN
COMPLEX SYSTEMS
II. REGIONAL DYNAMICS AND ITS INTERACTIONS WITH WORLD
DYNAMICS AND NATION STATE
III. THE ROLE OF UNIVERSITIES AS A CATALYST IN ENHANCING
REGIONAL, NATION STATE AND INTERNATIONAL SOCIETAL
DEVELOPMENT AND HUMANITY OPTIMAL
O. Güvenen 2012 / II
3
14
22
2
I. THE STRUCTURE OF SOCIETY AND
WORLD DYNAMICS IN COMPLEX SYSTEMS
O. Güvenen 2012 / II
3

Socio-economic phenomena by its structure is mathematically
complex, mathematically chaotic and of low predictability. Given
these factors and constraints, the analysis, research, decision
making concerning the socio economic phenomena requires
great attention, because its Ɛ (unknowns) are not comparable to
physical sciences. 2

Error margins in general are of percentage level in some cases
they can exceed 10%, even sometimes the given orientation can
be misleading. In physical sciences the error margins are of the
order 1 to ten thousand, 1 to one hundred thousand, to 1 million
etc.
2
Güvenen, O., (2011), “World Dynamics and Science Methodology, Technologies, Innovation, Production Structures, Information
Systems, Ethics and Strategic Decision Making”, Graduate Lecture Notes, Institure of World Systems, Economies and Strategic
Research (DSEE), Bilkent University, Ankara, p.18
O. Güvenen 2012 / II
4

What is realized in physical sciences is at the end apply to the
society and human being, we need to take into consideration this
Ɛ factor.

The analysis of world dynamics and complex socio-economic
structures requires an intensive understanding of this biasness.
O. Güvenen 2012 / II
5

In dealing with the socio-economic phenomena, we don't know
what is "absolute reality". We can only talk of probabilistic,
relative, observable reality. When we observe the world dynamics
in terms of information flow, international relations, economic
interactions, what remains pertinent is dominantly a dynamics
driven by power and power of money systems. The existing
world dynamics can not lead to sustainability in terms of
environment, human well being and world peace.
O. Güvenen 2012 / II
6

In a world of 7 billion human beings with $69 trillion GDP over
200 nations states, where 193 are United Nations members, 3
billion human beings are living with less than 2 dollars per day.

Globalization that we experience for the last 3 decades do not
have any strategy or philosophy behind. It is the product of
microchips with the enhancing use of computers and internet.
The financial markets started to use these remarkable tools to
buy and sell in real time.
O. Güvenen 2012 / II
7

Today on the average $3 trillion are circulated in a day in
financial markets. It moved later on to real economy. This was
called globalization, and it does not have any strategy or
philosophy behind as mentioned above. And there is no any legal
or economic framework or institutions to regulate the system.
The world economic crisis of 2008 is a natural result of the
above mentioned structure where the most important
explanatory variable is the lack of “ethics”.
O. Güvenen 2012 / II
8

In 2008, the world GDP was $60 trillion. The same year, the
financial markets and investment banks operations exceeded
$600 trillion, more than 10 times the world GDP.

The operations concerning this over $600 trillion were not under
any economic or legal regulatory framework. In 2012, the
situation is the same and it didn't change.
O. Güvenen 2012 / II
9

In a world that dominantly driven by power and power of
money, for the last 3 decades, the world is getting richer in
accumulated sense. The same world is worsening in terms of
income distribution at the world level when we observe Gini
coefficients and Lorenze curves.

As it was mentioned, out of 7 billion world population, 3 billion
human beings are living with less than 2 dollars a day. In this
context, you can not create a sustainable world dynamics, stop
conflicts, wars, avoid drug traffic, human traffic and to realize
the well being of humanity and peace.
O. Güvenen 2012 / II
10

The humanity, nation states, institutions, corporations, non
governmental organizations, individuals need to move from this
system 2 to system 1 which should be driven by science,
technology, ethics, value systems, culture, global consciousness
driven decision systems for humanity well being and peace. 3

When we observe the information flow at the level of our planet,
concerning specially socio-economic phenomena, we observe
non negligible error margins and information distortions. In such
a structure you can not talk in mathematical terms of world
optimal or humanity well being.
3
Güvenen, O., (2008), “Economic Prosperity, Interaction with Science, Knowledge and Value Systems” in Statistics, Science and
Public Policy XII, ed. A.M. Herzberg, Kingston: Queen’s University, p. 49, ISBN: 978-1-55339-152-4
O. Güvenen 2012 / II
11

The initial source of this biasness in Gadamer's hermeneutics
sense is that the initial signals of the world dynamics are
dominantly power and power of money driven structures. 4

In such a highly biased structure, analytically you can not
elaborate optimal decision systems at the global, regional, nation
state regions level and decision making converging to humanity
well being and peace. (Figure 1)
4
Gadamer, Hans-Georg (1976), “Philosophical Hermeneutics” Berkeley: University of California Press
O. Güvenen 2012 / II
12
REGIONAL GROUP
of NATION STATES
WORLD DYNAMICS
NATION STATE
REGIONS
Figure 1 : Interactions of World Dynamics with Regional Group of Nation States
and Nation State Regions
O. Güvenen 2012 / II
13
II. REGIONAL DYNAMICS AND ITS
INTERACTIONS WITH WORLD DYNAMICS
AND NATION STATE
O. Güvenen 2012 / II
14
2.1. INTERACTIONS OF WORLD DYNAMICS
WITH A GROUP OF NATION STATES
DYNAMICS AND ITS DIRECT IMPACT
ON NATION STATE REGIONS
O. Güvenen 2012 / II
15

Regional development requires to analyze intesively world
dynamics and nations state dynamics. We need to evaluate the
feasibility, the degree of freedom for the realization of projects,
its value added for the region optimal.

In this context the following factors can be considered as
important explanatory variables: 5





5
Leadership
Scientific and technological knowledge
Social capital and its linkage to multi-factor, multi-sector productivity
growth and regional, nation state development
Regional innovative system
Knowledge based regional development
Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol. 37. 6 & 7, pp. 579-593, p.192
O. Güvenen 2012 / II
16

In regional analysis and strategy evaluation, the geographical
foundations of economic growth and societial development need
to be endogenized to the system.

The locational interdepencies, the persistence of efficiency and
innovation enhancing clusters of labor in economic and social
development are intensively linked to the geographical factors. 6
The probability of having severe social costs and many kinds of
technical diseconomies is relative high.
6 Scott,
A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol. 37. 6 & 7, pp. 579-593, p.193
O. Güvenen 2012 / II
17
7

Globalization tends in general to create agglomerative tendencies in
many areas of the world, for example, 40% US employment is
currently located in areas constituting in only 1.5 % of its total land
area. Rapidly rising cost of urban concentration due to congestion,
pollution, escalating land prices, crime, family breakdown etc, needs to
be taken in consideration in nation state and regional, societal
development strategies.

“Regional economic and societal development involves a mixture of
exogenous constraints, the reorganization of local asset systems and
political mobilization focused on institutions, socialization and social
capital.” 7
Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol. 37. 6 & 7, pp. 579-593, p.198
O. Güvenen 2012 / II
18

Regional innovation system theory indicates the importance of
the following areas:
 “Evolutionary economics,
 The economics of innovation
 Theories of interactive learning
 Institutional economics
 Regional competencies” 8
8 Uyarra,
E, (2010), What is Evolutionary about ‘Regional Systems of Innovation?” Implications for Regional Policy. Journal of
Evolutionary Economics, 20, 115, 337
O. Güvenen 2012 / II
19
2.2 KNOWLEDGE DYNAMICS AND
REGIONAL POLICIES
O. Güvenen 2012 / II
20

9
Regional policies requires intesively the knowledge dynamics.
The following factors can be considered as determinant ones:
 “The importance of combining different types of knowledge,
for instance scientific, organizational and cultural
 The relationship between local and global knowledge
interactions
 The interaction of private and public knowledge resources
 The role of sectors, regions and national institutions in
shaping economic and social development
 The importance cross-sectoral knowledge interactions for
driving innovation”9
Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public
Policy”, Eurodite, p.4
O. Güvenen 2012 / II
21
III.
THE ROLE OF UNIVERSITIES AS A
CATALYST IN ENHANCING REGIONAL,
NATION STATE AND INTERNATIONAL
SOCIETAL DEVELOPMENT AND
HUMANITY OPTIMAL
O. Güvenen 2012 / II
22
3.1. WORLD DYNAMICS AND UNIVERSITIES
O. Güvenen 2012 / II
23
Regional Dynamics
World Dynamics
Universities’ Contribution to Scientific
Analysis, Modeling, Quantification, Decision
Systems
Regional Optimal, National State Optimal,
Humanity Optimal, Solution Optimal
Figure 2 : World Dynamics, Scientific Analysis, Decision Systems and Humanity
Optimal
O. Güvenen 2012 / II
24

We observe an exponentially increasing impact of knowledge
and Information and Communication Technologies on
education, science, technology and decision systems. These
factor were driven dominantly by the western world. In the
beginning of 21st century they tend to move equally to Asia,
Latin America and other parts of the world.

The creation of high value added requires efficient use of
knowledge, innovation, organization, entrepreneurial and
decisional skills.
O. Güvenen 2012 / II
25

The practice of transdisciplinary science methodology to deal
with mathematically complex, mathematically chaotic, low
predictibility systems, and minimizing the error margins,
information distortions do have a very positive impact on
decision systems in creating higher value added products and
services.

Universities through education, research and enhanced
interactions with industry and business can play a very important
catalyst role at the level of region, nation state, international
development, human well being and peace.
O. Güvenen 2012 / II
26

10
In the endogenization of regional, nation state, international
strategies, the impact and contribution of universities is a
necessary condition. They provide science, technology,
knowledge, strategic planning, decision support systems through
research, education and enhanced cooperation with industries
and businesses. 10
Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge Dynamics, Regional Development and Public
Policy”, Eurodite, p.4
O. Güvenen 2012 / II
27
3.2. EDUCATION, RESEARCH, INDUSTRY
AND BUSINESS INTERACTIONS IN A SET
STRUCTURE SYSTEM : THIRD GENERATION
UNIVERSITIES
O. Güvenen 2012 / II
28

Third generation universities combine in a fully complementary
approach, education, research, industry and business.

In that context, industry and business become directly an active
component of the university. Through its inputs to education
and research contributes to its dynamics, it creates a higher
education, research and financial value added to the output of
the university. 11
11
Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, p. XIV, ISBN: 978-6055625-00-9
O. Güvenen 2012 / II
29
Figure 3 : Research Methodology Strata and its evolution 12
12
Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi Yayınları, İstanbul, sayfa 106, ISBN: 978605-5625-00-9
O. Güvenen 2012 / II
30

The impact of transdisciplinary methodology in enhancing the
catalyst role of universities in societal and human development is
a substantial contribution. Equally the use of efficient
information systems and decision support systems with above
mentioned factors are necessary conditions in the “Third
Generation Universities” applications converging to nature,
peace and humanity well being.

This approach will enhance the role of universities as a catalyst in
regional and nation state societial development in the context of
complex world dynamics.
O. Güvenen 2012 / II
31
REFERENCES

Gadamer, Hans-Georg (1976), “Philosophical Hermeneutics” Berkeley: University of
California Press

Güvenen, O., (2011), “World Dynamics and Science Methodology, Technologies,
Innovation, Production Structures, Information Systems, Ethics and Strategic
Decision Making”, Graduate Lecture Notes, Institure of World Systems, Economies
and Strategic Research (DSEE), Bilkent University, Ankara, p.18

Güvenen, O., (2008), “Economic Prosperity, Interaction with Science, Knowledge and
Value Systems” in Statistics, Science and Public Policy XII, ed. A.M. Herzberg,
Kingston: Queen’s University, p. 49, ISBN: 978-1-55339-152-4

Halkier, H., M., Dahlström, L. James, J. Manniche, L. S. Olsen, “Knowledge
Dynamics, Regional Development and Public Policy”, Eurodite, p.4
O. Güvenen 2012 / II
32
REFERENCES

Scott, A.J, M.Storper, “Regions, Globalization, Development”, Regional Studies, Vol.
37. 6 & 7, pp. 579-593, p.192, 193, 198

Uyarra, E, (2010), What is Evolutionary about ‘Regional Systems of Innovation?”
Implications for Regional Policy. Journal of Evolutionary Economics, 20, 115, 337

Wissema, J. G.,(2009), Üçüncü Kuşak Üniversitelere Doğru, Özyeğin Üniversitesi
Yayınları, İstanbul, p. XIV and 106, ISBN: 978-605-5625-00-9
O. Güvenen 2012 / II
33