For citation:
Frolov, I. E. (2024). Academician Yu. V. Yaremenko: We Must Be Equal to Ourselves. AlterEconomics, 21(1), 123–140. https://doi.org/10.31063/AlterEconomics/2024.21-1.8
Abstract:
The article focuses on the creative contributions of Academician Yury V. Yaremenko, a member of the Russian Academy of Sciences, who significantly influenced the development of heterodox economic theories. Yaremenko’s theory revolves around the view of the economy as a heterogeneous and pyramidal structure. At its foundation, lower levels employ massive and inexpensive resources with low returns, while upper levels use more productive yet costlier resources. Economic growth, in this context, is characterized by the interaction of two distinct processes, explaining the effects of scientific and technological development through “structural shifts”. The theory explains the relationships between substitution and compensation processes throughout historical development, leading to various forms of labor-saving and capital-saving scientific and technological progress. Its systemic nature is evident in connecting macro-level interactions with micro-level dynamics, specifically in how enterprises respond to resource scarcity by increasing the complexity of their production processes. The theory provides an explanation for the Soviet economy’s inability to transition to intensive growth, attributing it not only to external but also to internal constraints, such as the exaggerated development of the military-industrial complex. Additionally, it sheds light on why the Communist Party of the Soviet Union lost its role in safeguarding the common national interest among economic entities. Furthermore, Yaremenko’s theoretical constructs can be extended to the global economy, which can be presented as a heterogeneous hierarchical social structure. Technological leadership is a pivotal factor in the formation of three interconnected and complex “pyramidal” structures: material, technological, and financial.
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