Central Economic Mathematical Institute

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The Central Economic Mathematical Institute (CEMI) (Russian: Центральный экономико-математический институт (ЦЭМИ)) of the Russian Academy of Sciences is an economic research institute located in Moscow. It focuses on economic theory, mathematical economics and econometrics. The CEMI was established in 1963 as an institute of the Academy of Sciences of the USSR, superseding the Laboratory of Economics and Mathematical Methods which had been founded by Vasily Sergeevich Nemchinov in 1958. In 1964 a branch of the institute was created in Tallinn, and in 1966 Leningrad branch was established.^[1]

"When the Institute was founded in 1963, its main goal was to elaborate the theory of optimal management of the economy, applying mathematical methods and the use of computers to the task of practical planning."^[2] Nowadays CEMI's focus has been on the transition period from communism to capitalism in Russia, and on microeconomic models and models of enterprises' behaviour. The so-called System of Optimal Functioning of the Economy (SOFE), with its mathematical planning approach based on methods developed by Leonid Kantorovich and its IT approach, was intensively discussed during Soviet times. It was objected to by Marxist economists as representatives of the Political Economy, who where afraid that the mathematical formula approach was too close to Western economics, and might lead to Soviet economics converting to Western economics, which also rely on mathematical formulas. CEMI's first director was N.P. Fedorenko. In 1985 he was succeeded by the Russian academic V.L. Makarov, who still directs the instutite.

CEMI and SOFE have drawn attention to Western economists in Soviet times, and the author of this article (Juergen Drzymalla) had the opportunity to study one year at the former LGU (kafedra matematiko-ekonomiceskich rascetov) and MGU in 1986, discussing this issue with Russian scientists. I discussed the issue with the Russian scientist Andrey Belych (LGU), the Finish economist and Soviet/Russian expert Pekka Suetela (he was in Cologne in the late 1980s) and with the German economist and Soviet/Russian expert Roland Götz (Cologne at that time).

Academic N.P. Fedorenko and other Russian scientists have issued many books on SOFE, most of them are in Russian.

SOFE's mathematical and IT approach remains still actual in today's globalized economy, and it would make sense to follow up today's discussion in CEMI.

CEMI headquarters features alto-relievo mosaic composition Möbius Strip on its facade, created by architect Leonid Pavlov and painters-monumentalists V.Vasiltsov and E.Zharenova in 1976.^[3]