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The Alchemy of the Can Opener: How an Austrian Economist Found Himself Supporting Dictatorial Imposition of a Liberal Order

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  • Guinevere Nell

Abstract

Why would Hayek, the great critic of 'rational constructivism' and defender of spontaneous orders, think a transitional dictatorship could work? Here I attempt to dissect the alchemy of 'turning a constitution into a can opener' as Farrant & McPhail (2014) put it. Hayek argues against the imposition by an external source of order upon a society. He stresses the importance of an evolving culture and tradition, noting that they should be spontaneous orders not command systems, and that the culture of a society must be accepting and supportive of its institutions. Sometimes the culture is more important than the formal institutions of a society for efficiency. So why would Hayek argue that a transitional dictator could impose a constitution upon the people? It will be argued here that if Hayek had pursued the theoretical line set out in his Constitution of Liberty, he might have responded to the situation in Chile differently.

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  • Guinevere Nell, 2014. "The Alchemy of the Can Opener: How an Austrian Economist Found Himself Supporting Dictatorial Imposition of a Liberal Order," Review of Political Economy, Taylor & Francis Journals, vol. 26(3), pages 349-357, July.
    • Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:349-357
    DOI: 10.1080/09538259.2014.932064
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    1. Peter J. Boettke & Christopher J. Coyne & Peter T. Leeson, 2015. "Institutional stickiness and the New Development Economics," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 6, pages 123-146, Edward Elgar Publishing.
    2. Hayek, F. A., 2012. "Hayek on Hayek," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226321202 edited by Kresge, Stephen & Wenar, Leif, September.
    3. Guinevere Liberty Nell, 2011. "Rent-Seeking, Hierarchy and Centralization: Why the Soviet Union Collapsed So Fast and What it Means for Market Economies," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 53(4), pages 597-620, December.
    4. Robert Sugden, 2005. "Spontaneous Order," Palgrave Macmillan Books, in: The Economics of Rights, Co-operation and Welfare, chapter 1, pages 1-9, Palgrave Macmillan.
    5. Andrew Farrant & Edward McPhail, 2014. "Can a Dictator Turn a Constitution into a Can-opener? F.A. Hayek and the Alchemy of Transitional Dictatorship in Chile," Review of Political Economy, Taylor & Francis Journals, vol. 26(3), pages 331-348, July.
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