ED 17

2. Economic Development

3. Quiz 4 Name______
What are the three debates?

4. Three Debates
Blank Slate vs. History
State vs. Individual
Design vs. Spontaneous

5. Friedrich Hayek Gunnar Myrdal
1974

6. “If I had been consulted
whether to establish a
Nobel Prize in economics,
I should have been
decidedly against it”

7. “the Nobel Prize confers
on an individual an
authority which in
economics no man ought
to possess”

8. “We are free to expand and
perfect our knowledge about
the world, only restricted by
the number of scientists
working and, of course, the
degree of their…brightness”

9. Morality
Theory
Evidence

10. Morally neutral approaches to
poverty do not exist
Technocracy
Rule by Experts

11. Autocrat
Self-Power
Dictator
One Ruler with absolute power

12. How do you get consensus?
Agree
Experts
Disagree
Non-Experts
All experts agree

13. Debate
If you don’t agree with me then
you are not an expert.

14. Development Experts
High Status
Confer Importance

15. Can we help the poor by
helping a dictator?
1950s
Authoritarian Development
Won

16. Technocratic Development
assumes benevolent dictator

17. Dismissing, disqualifying and
suppressing dissenting views
You are just repeating the
tired argument about free
markets versus state
intervention.

18. Dismissing, disqualifying and
suppressing dissenting views
Not about markets and the state
About individual rights

19. Dismissing, disqualifying and
suppressing dissenting views
You are an ideologue

20. Code Words
Markets, No government
Right
Colonialism, Racism, Imperialism
Leftist

21. No problem with Experts
Problem with putting Experts
in charge with no
accountability

22. Both Left and Right oppose the
technocratic approach

23. What is book is not doing:
Not about ideological debates in rich countries
Not implying guilt by association
Not about extending rights in new areas
Not a how-to manual
Not an expose of academics

24. Friedrich Hayek
1899-1992
Nobel Prize 1974
The curious task of
economics is to
demonstrate to men how
little they really know
about what they imagine
they can design.

25. 1899 Born inVienna Austria
1923-1924 NewYork - English
and economics
1933 London School of Economics
1944 Road to Serfdom

26. Individual Rights
Means
End

27. Communists IndividualsFascists
Totalitarians

28. 1898 Born in Gagnef, Sweden
1923 Law Degree
1927 PhD Economics
1960 Profesor
1974 Nobel with Hayek
1982 Wife Alva awarded the Nobel Peace Prize
1934 1944 1968

29. People respond
positively to
authority
Compulsion
Force

30. Claimed
unanimous
support from the
experts

31. Technocratic
Approach
Development
Economists

32. Blank Slate Historyvs.
Nations Individualsvs.
Design Spontaneousvs.

33. State versus
the Market

34. Authoritarian versus
Free Development
Public Goods
Competition politics
Pro-free market autocrat

35. Why the
Worst Get to
theTop
Benevolent Dictator
Oxymoron

36. Knowledge
Problem

37. The Use of
Knowledge in
Society
Download and read

38. All economic transactions
are exchanges of
differential knowledge

39. Tacit
Knowledge

40. Information
Intelligence
Incentives

41. Big difference
between
difficult and
impossible

42. Limited Knowledge
Free Markets
Prices contain information and incentives
Spontaneous Solutions

43. Unanimity inhibits progress
Stagnation of thought and a
decline of reason
Cannot predict innovation

44. Creativity always
comes as a
surprise
If it didn’t then
socialism would
work