Nikolay Fedorenko
Encyclopedia
Nikolay Prokofyevich Fedorenko (born 26 April/28 April 1917, died 1 April 2006) was a Russia
n economist
and chemist
. He was the head of the "Central Economic Mathematical Institute"(CEMI) in Moscow
from 1963 to 1985.
His name is associated with an economic planning
methodology
used in the former Soviet Union
and known as the System of Optimal Functioning of the Economy (SOFE). During the Soviet period SOFE was a controversial approach using mathematical
planning methods in order to improve the central planning system. These methods were based on the idea of linear programming
or "optimal planning", associated with L.V. Kantorovich
. The SOFE approach was sharply criticized by some Marxist political economists
, who saw the mathematical methods as being too close to Western
economic approaches. They were afraid that Soviet political economy would disappear behind the mathematical formulas, and that Soviet economics would finally be assimilated into Western economics, which also uses mathematical formulas.
An innovative feature of the SOFE approach was its vision of connecting together the different levels of the national economy with computer
s, which would carry out the calculation of the mathematical planning formulas. This was a precursor of the use of the internet. The idea of using mathematical planning methods and computers remains valid even in today's globalized economy.
Despite all ideological attacks Fedorenko remained in his position in CEMI. A Doctor of Economic Sciences, he also was an Honorary Director of CEMI since 1992, a member of the American Econometric Society
(from 1966), a member of the International Economical Society (from 1967) and an Honorary Director of the Warsaw School of Planning and Statistics.
He wrote several books about optimal planning and SOFE, mostly in Russian, some translated into English.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and chemist
Chemist
A chemist is a scientist trained in the study of chemistry. Chemists study the composition of matter and its properties such as density and acidity. Chemists carefully describe the properties they study in terms of quantities, with detail on the level of molecules and their component atoms...
. He was the head of the "Central Economic Mathematical Institute"(CEMI) in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
from 1963 to 1985.
His name is associated with an economic planning
Economic planning
Economic planning refers to any directing or planning of economic activity outside the mechanisisms of the market, in an attempt to achieve specific economic or social outcomes. Planning is an economic mechanism for resource allocation and decision-making in contrast with the market mechanism...
methodology
Methodology
Methodology is generally a guideline for solving a problem, with specificcomponents such as phases, tasks, methods, techniques and tools . It can be defined also as follows:...
used in the former Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
and known as the System of Optimal Functioning of the Economy (SOFE). During the Soviet period SOFE was a controversial approach using mathematical
Mathematics
Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity...
planning methods in order to improve the central planning system. These methods were based on the idea of linear programming
Linear programming
Linear programming is a mathematical method for determining a way to achieve the best outcome in a given mathematical model for some list of requirements represented as linear relationships...
or "optimal planning", associated with L.V. Kantorovich
Leonid Kantorovich
Leonid Vitaliyevich Kantorovich was a Soviet mathematician and economist, known for his theory and development of techniques for the optimal allocation of resources...
. The SOFE approach was sharply criticized by some Marxist political economists
Political economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
, who saw the mathematical methods as being too close to Western
Western culture
Western culture, sometimes equated with Western civilization or European civilization, refers to cultures of European origin and is used very broadly to refer to a heritage of social norms, ethical values, traditional customs, religious beliefs, political systems, and specific artifacts and...
economic approaches. They were afraid that Soviet political economy would disappear behind the mathematical formulas, and that Soviet economics would finally be assimilated into Western economics, which also uses mathematical formulas.
An innovative feature of the SOFE approach was its vision of connecting together the different levels of the national economy with computer
Computer
A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
s, which would carry out the calculation of the mathematical planning formulas. This was a precursor of the use of the internet. The idea of using mathematical planning methods and computers remains valid even in today's globalized economy.
Despite all ideological attacks Fedorenko remained in his position in CEMI. A Doctor of Economic Sciences, he also was an Honorary Director of CEMI since 1992, a member of the American Econometric Society
Econometric Society
The Econometric Society is an international society for the advancement of economic theory in its relation with statistics and mathematics. It was founded on December 29, 1930 at the Stalton Hotel in Cleveland, Ohio....
(from 1966), a member of the International Economical Society (from 1967) and an Honorary Director of the Warsaw School of Planning and Statistics.
He wrote several books about optimal planning and SOFE, mostly in Russian, some translated into English.
Further reading
- Sutela, Pekka (1984), Socialism, Planning and Optimality: A Study in Soviet Economic Thought, Helsinki 1984.
- Götz, Roland (1972), Preis und optimale Planung. Zur Diskussion in der Sowjetunion, (Diss.), München 1972.
- Zaubermann, Alfred (1975), The Mathematical Revolution in Soviet Economics, London, New York, Toronto 1975.
- Drzymalla, Jürgen (1991), Planung im sowjetischen Wirtschaftssystem,(Diss.), Frankfurt/M., Bern, New York, Paris 1991.
- Feodorenko, N.P., Nekotorye voprosy teorii i praktiki planirovanija i upravlenia, Moskva 1979.
- Fedorenko, N.P., Ju. V. Ovsienko, N. Ja. Petrakov (1983), Vvedenie v teoriju i metodologiju sistemy optimal'nogo funkcionirovanija socialisticeskoj ekonomiki, Moskva 1983.
- Fedorenko,N.P., N. Ja. Petrakov (1984), Modelirovanie v processach upravlenija narodnym chozjajstvom, Moskva 1984.
- Fedorenko, N.P., I.P. Subkinaja (1983), Ekonomiko-matematiceskie modeli v sisteme upravlenia predprijatijami, Moskva 1983.
External links
- http://www.ras.ru/news/shownews.aspx?id=41f49821-4398-428e-950d-7dea6a391114&_Language=ruWebpage of the Russian Academy of SciencesRussian Academy of SciencesThe Russian Academy of Sciences consists of the national academy of Russia and a network of scientific research institutes from across the Russian Federation as well as auxiliary scientific and social units like libraries, publishers and hospitals....
devoted to Fedorenko]