The Entropy of Politico-Economic Systems

the AZEL PERSPECTIVE Commentary on Cuba's Future, U.S. Foreign Policy & Individual Freedoms - Issue 158

The Entropy of Politico-Economic Systems Share Tweet Forward

Entropy, the Second Law of Thermodynamics, is not a promising topic for a newspaper column. However, its effect on politico-economic systems is common sense. In essence, entropy is a measure of the disorders that exist in a system, and here I am applying the Law of Entropy to the disorders that occur in politico-economic systems. Entropy can be stated in many different ways. The Second Law of Thermodynamics states that, for an isolated system in which neither energy or matter can enter nor leave, entropy never decreases. For our purposes, we can simply say that in closed politico-economic systems, things fall apart. The two politico-economic systems I want to consider are capitalism and communism. Generally speaking, communism is a politically and economically closed system; whereas capitalism with its emphasis on free markets is an open system. In the Soviet era, leaders sought not only to isolate communist countries politically, but also economically in pursuit of autarky within the Soviet Bloc. The goal was for Soviet Bloc countries to become self sufficient, and not reliant on imported goods from the capitalist world. A similar autarkic policy was pursued in the developing world under the rubric of Import Substitution Industrialization (ISI).  Based on the works of structural economists, such as Raul Prebisch, ISI gained prominence in Latin America and the Caribbean beginning in the 1950s. Prebisch became influential as executive director of the Economic Commission for Latin America, and later as secretary-general of the United Nations Conference on Trade and Development. Fundamental to Import Substitution Industrialization, was a belief in state-directed central planning and socialist politico-economic theory. The emphasis of Import Substitution Industrialization was on discouraging foreign investments, and on the development of internal markets for goods and services. As such, ISI sought to create a closed economic system. That is, a system subject to entropic disorders. In the 20th century, seventy million people died in major famines. Of these, 80 percent were victims of Communist regimes forced collectivization and central planning.  Today the most dramatic example of a country that has practiced isolationist and autarkic economic policies is communist North Korea.  Different brands of isolationist politico-economic systems can also be found in some Latin American countries, particularly in communist Cuba beginning in 1959, and more recently in the Venezuela of Chavez-Maduro.  All are examples of how in closed politico-economic systems, things fall apart. At best, closed systems manage an equilibrium of mediocre dysfunction from which they cannot escape. There are, of course, many operational reasons as to why these closed systems fail; disregard for the rule of law, contempt for property rights, excessive government controls, and more. And, by the way, when capitalist systems show contempt for the rule of law, disregard for property rights, or disenfranchise sectors of the population, they too activate the Second Law of Thermodynamics. Things do fall apart. The Law of Entropy governs the politico-economic systems of isolated nations. Inevitably, things fall apart. The best antidote is the replenished energy provided by an open flow of sociopolitical and economic information. The prescription to slow down entropic processes is for nations to adopt, and sustain, open politico-economic systems. Closed systems, are destined to fail period. But open systems also have to be vigilant to resist entropy.  Democratic free-market systems can succumb into various forms of elite rule that hinder the politico-economic participation of the citizenry. Democratic systems can then become would-be closed systems. Closed politico-economic systems often originate with some form of collectivism that favors a class, a religion, a race, an ethnic group, or a nation.  These closed systems seek to improve the collective well-being of, say the proletariat class, as Marxism claims, with little regard for the natural rights of the individuals that make up that class.  This is also the case for nationalism based on ethnicity, race, or religion, where the systems are closed to all but the righteous ones. Scientists recognize the Second Law of Thermodynamics as essential to their understanding of scientific affairs. Similarly, we need to understand the entropy inherent in closed politico-economic systems. Such systems fall apart, and cannot contribute to happiness in human affairs. Please let us know if you  this article. We welcome your feedback. Abrazos,  Lily & José  (click on the name to email Lily or Jose) José Azel, Ph.D. José Azel left Cuba in 1961 as a 13 year-old political exile in what has been dubbed Operation Pedro Pan - the largest unaccompanied child refugee movement in the history of the Western Hemisphere. He is currently dedicated to the in-depth analyses of Cuba's economic, social and political state, with a keen interest in post-Castro-Cuba strategies. Formerly, a Senior Scholar at the Institute for Cuban and Cuban-American Studies (ICCAS) at the University of Miami, Jose Azel has published extensively on Cuba related topics. In 2012 and 2015, Dr. Azel testified in the U.S. Congress on U.S.-Cuba Policy, and U.S. National Security.  He is a frequent speaker and commentator on these and related topics on local, national and international media.  He holds undergraduate and masters degrees in business administration and a Ph.D. in International Affairs from the University of Miami. José along with his wife Lily are avid skiers and adventure travelers.  In recent years they have climbed Grand Teton in Wyoming, trekked Mt. Kilimanjaro in Tanzania and Machu Pichu in Peru.  They have also hiked in Tibet and in the Himalayas to Mt. Everest Base Camp. They cycled St. James Way (El Camino de Santiago de Compostela) and cycled alongside the Danube from Germany to Hungary. They have scuba dived in the Bay Islands off the Honduran coast and in the Galapagos Islands. Their adventurers are normally dedicated to raise funds for causes that are dear to them.  Watch Joe & Lily summit Kilimanjaro. Books by Dr. José Azel "Liberty for beginners is much more than what the title promises. It is eighty themes touched with the wisdom of a master, and the charm of an excellent communicator. Anyone that wishes to understand why countries do, or do not progress, will find in this book the best explanations. If it was in my power, this work would be required reading for all college and university students, and I would recommend its reading to politicians, journalists, and policymakers. With this book Azel accomplishes what was achieved in France by Frédéric Bastiat, and in the United States by Henry Hazlitt: brings together common sense with intelligent observation, and academic substance. Stupendous" Carlos Alberto Montaner Buy Now "Libertad para novatos es mucho más de lo que promete el título. Son ochenta temas tocados con la sabiduría de un maestro y la amenidad de un excelente comunicador. Cualquier adulto que desee saber por qué progresan o se estancan los pueblos aquí encontrará las mejores explicaciones. Si estuviera en mis manos, esta obra sería lectura obligatoria de todos los estudiantes, tanto de bachillerato como universitarios, pero, además, se la recomendaría a todos los políticos y periodistas, a todos los policy makers. Azel logra con este libro lo que Frédéric Bastiat consiguiera en Francia y Henry Hazlitt en Estados Unidos: aunar el sentido común, la observación inteligente y la enjundia académica. Estupendo." Carlos Alberto Montaner Compre Aqui In Reflections on Freedom, José Azel brings together a collection of his columns published in prestigious newspapers.  Each article reveals his heartfelt and personal awareness of the importance of freedom in our lives.  They are his reflections after nearly sixty years of living and learning as a Cuban outside Cuba. In what has become his stylistic trademark, Professor Azel brilliantly introduces complex topics in brief journalistic articles. Buy Now En Reflexiones sobre la libertad José Azel reúne una colección de sus columnas publicadas en prestigiosos periódicos. Cada artículo revela su percepción sincera y personal de la importancia de la libertad en nuestras vidas. Son sus reflexiones después de casi sesenta años viviendo y aprendiendo como cubano fuera de Cuba.  En lo que ha resultado ser característica distintiva de sus artículos, el Profesor Azel introduce con brillantez complejos temas en  breves artículos de carácter periodístico. Compre Aqui Mañana in Cuba is a comprehensive analysis of contemporary Cuba with an incisive perspective of the Cuban frame of mind and its relevancy for Cuba's future. Buy now Pedazos y Vacíos is a collection of poems written in by Dr. Azel in his youth. Poems are in Spanish. Buy now

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