World History as the Synoptic Narrative of Thermodynamic Unfolding

The work of Peter Pogany has been prominently promoted on this blog. I’ve put together a compilation document that summarizes, in his own words, Pogany’s thoughts on the thermodynamic unfolding of recent world history in the sub-epochs he calls Global System 0, Global System 1, Global System 2, and Global System 3. Click here to download the pdf document.

The heart of the document, World History as the Synoptic Narrative of Thermodynamic Unfolding, came originally as part of a 2010 paper called “What’s Wrong with the World? Rationality! A critique of economic anthropology in the spirit of Jean Gebser.” It was later published as Appendix B in the book “Havoc: Thy Name is Twenty First Century,” (2015). This paper is based mostly on the last edit printed in “Havoc,” with some additions that come from the original 2010 paper…and various additional quotes at the end.

My table, borrowed from one made by Pogany (see the pdf):

“This paper argues that (a) the emergence of classical capitalism in the 19th century answered the need for global-scale self-organization; (b) this scheme, interrupted by World War I, was replaced after World War II; (c) the implied transformation has been accompanied by a nonarbitrary, causally determined, irreversible socialization of intranational and international economic relations; (d) contemporary civilization is moving toward a new form of self-organization that would recognize limits to demographic-economic expansion. What will it take to go from the current hostile disgust with the dystopia of tightened modes of multilateral governance to people around the world on their knees begging for a planetary guild? It will take nothing less than a mutation in consciousness, as outlined in the oeuvre of Jean Gebser (1905-1973).”
(Thermodynamic Isolation and the New World Order, 2013)

The potential third global system that Pogany projected as a possibility was thus characterized:

“Long-term world equilibrium — GS3

The thermodynamic interpretation of global history predicts a halt to population and economic expansion for purely physical reasons. This general condition requires a new global system: GS3 – two-level economy/strong multilateralism/mostly government money (maximum reserve banking).

Legally binding international agreements on the use of nonrenewable energy and material resources, as well as on harmful emissions, would enlarge the government’s role in economic affairs since administrative methods would be needed to ensure national compliance with globally determined goals. The implied strong multilateralism would split national economies (hence, the world economy) into a free-market and a public authority-dominated sector. While carrying on the best traditions of constructive entrepreneurship, businesses in the first domain would bid for resources and emission rights; joint private-public ownership would prevail in the second one. The state’s substantial holding of private shares would eliminate most, if not all, income taxation.

The monetary system would be based on a global currency issued by the global central bank. The world currency would combine the discipline GS1’s gold standard vouchsafed and the flexibility GS2’s fiat money has provided (without the fractional reserve system, which, as will become obvious during the first half of the 21st century, is wholly incompatible with any consciously pursued economic steady state.) Much along the lines proposed by Keynes at the 1944 Bretton Woods conference, an international clearing house would keep cross-border trade in equilibrium.

Maximum bank reserves would restrict the ability of banks to extend loans. Just as under the prevailing minimum reserve system, some banks in some instances may keep no reserves at all; under the maximum reserve system some banks in some instances might be required to keep 100 percent reserves. While such an arrangement may not eliminate the creation of money through debt, it would certainly change its nature. The consent of depositors would be required to make loans, making financial intermediation once again the modest helper that draws together scattered household savings in order to place them into the hands of bona fide entrepreneurs. “Enterprise,” in the Keynesian sense, would squeeze out “speculation.”

The economic role of grass roots communities would increase significantly.”

Click here for the complete summary paper.

Michel Bauwens and Jose Ramos also have a very good short summary of Peter Pogany here:
https://wiki.p2pfoundation.net/Pulsation_of_the_Commons#Pogany:_the_time_for_the_chaotic_transition_has_begun

Also see my full page devoted to all things Peter Pogany:
https://integralpermaculture.wordpress.com/peter-pogany/

In Praise of Peter Paul Pogany, an Integral Economist

I’ve just completed a new page on my website dedicated to promoting the work of Peter Pogany, which you can find here, and I’d like to use this post as a way of alerting everyone to this new page, and to provide a brief summary of what you’ll find there.

Peter Paul Pogany (1936-2014) was born in Budapest, Hungary, and later moved to the U.S. to continue his education and begin his career. He worked as an Economist for the U.S. International Trade Commission (where he contributed to many high-profile U.S. government studies on foreign economic issues), and was an Adjunct Professor at George Washington University.

My impression is that it may have been after his retirement that he felt free to more deeply explore and begin writing, relating his expertise in economics to thermodynamics, history, philosophy, and other big picture ideas.

It is my belief that Pogany’s work is essential for anyone wanting to grasp the implications of integral economics, of which I’ll be writing more about in the future.

In 2006 Pogany’s major work was published: Rethinking the World, “the result of several years of full-time, independent, transdisciplinary research.”

In Rethinking the World, Pogany delved deep into his understanding of history as a thermodynamic process.

From the  blurb about Pogany’s book:

“The still expanding human biomass and mindlessly pursued economic expansion are straining against the planet’s physical limits. Oil! Energy! Ecology! Growing vulnerabilities in hyperlinked national economies! The transformation of the current global system, “mixed economy/weak multilateralism,” into a radically new one, “two-level economy/strong multilateralism,” looks like the only way to avoid drifting toward extinction…

His 2006 book does not once mention Jean Gebser, but from 2009 to 2013, Pogany wrote a number of insightful articles and essays relating ideas from Gebser’s magnum opus, The Ever-Present Origin, to the predicament the world is now facing, and the ways in which Gebser’s ideas about stages of consciousness, especially the yet to come stage of the integral structure of consciousness (a universal “intensified awareness”), support Pogany’s own program of New Historical Materialism.  Many of these essays were prepared for presentation to the International Gebser Society at their annual conference.

Sadly, Peter Pogany passed away on May 25, 2014. His final book, Havoc, Thy Name is Twenty-First Century! Thermodynamic Isolation and the New World Order was published posthumously in 2015.  This work is a slight alteration and expansion of a paper published in 2013 (see below).

Here is the blurb for this book:

“Just to maintain our standard of living, we need to grow the worldwide economy at an unsustainable rate.

As we seek to hit such lofty targets, we’re bound to deplete our resources and cause environmental crises on a scale that we have never seen before. Revolutions, terrorism, and wars will follow.

Peter Pogany examines the problems we face and argues that human culture is governed by thermodynamic cycles of steady states interrupted by chaotic transitions. Specifically, he postulates that a steady state was interrupted by World War I, with a chaotic transition following World War II, which has led us to the current world order.

His theory predicts that global society is drifting toward a new form of self-organization that will recognize limits to demographic-economic expansion – but only after we go through a new chaotic transition that will start sometime between now and the 2030s.

Havoc, They Name is Twenty-First Century, delivers sobering thoughts on where the world is headed, but it also offers a glimpse of a bright future that we can embrace once we get through the darkness to come.”

With the two books above, and the essays linked below, you’ll obtain a good understanding of Peter Pogany’s ideas, which I believe are unique, timely, insightful, important, broadly considered, and with wide application. Even better if you can read this material alongside Gebser’s The Ever-Present Origin, and other works and ideas presented on this website (see here and here).

Below are a list of important essays and longer papers that I would like to highlight. Check the Pogany Page if you’d like to see descriptive summaries for each essay. 

Presentations to the International Gebser Society Conference:

“Fifth Structure” – emergence in economics: Observations through the thermodynamic lens of world history (presented October 2009) [Download pdf]

New scientific evidence confirms Gebser’s concerns about technological overreach (presented October 2010) [Download pdf]

Gebser’s relevance to the global crisis (presented October 2011) [Download pdf]

Reprinted as chapter 6 in “Filling the Credibility Gap” edited by Algis Mickunas and John Murphy

An Aperspectival Opinion on the Future of “Smart Money” (presented October 2012) [Download pdf]

Tributaries to Gebser’s Social Thought (presented October 2013) [Download pdf]

• Longer Papers at Munich Personal RePEc Archive (MPRA):

What’s Wrong with the World? Rationality! A Critique of Economic Anthropology in the Spirit of Jean Gebser (2010)
[Available here: https://mpra.ub.uni-muenchen.de/27221/]

Value and Utility in a Historical Perspective (2012)
[Available here: https://mpra.ub.uni-muenchen.de/43477/]

Thermodynamic Isolation and the New World Order (2013)
[Available here: http://mpra.ub.uni-muenchen.de/49924/]

[This is the paper that the book Havoc, Thy Name is Twenty-First Century! is based upon.]