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Western Institution Building:The War, Hayek’s Cosmos and the WTO


  • M. Ulric Killion

    (Shanghai International Studies University)


Despite the shortcomings of Hayek’s spontaneous order, there is a positive side, perhaps even a positive feedback. Hayek left us with a “what if” question and returns us to that initial opening of Pandora’s Box, or perhaps the initial onset of neo-realism, neo-liberalism, developmentalism, globalism, transnationalism and other concepts, precepts and adjectives justifying institution building by bargaining and military force. In terms of new world order, institution building by necessity requires fundamental changes in governmental structures in non-Western cultures and nation-states such as China, Afghanistan and Iraq. Such changes are being prompted by means of political, economic and military powers of the U.S. and other developed nation-states, and international intergovernmental organizations dominated by developed nation-states such as the World Trade Organization. However arguably well intended there remains the question of what will eventually result from the introduction of Western institutions into non-Western cultures and developing countries. This article explores F. A. Hayek’s discourse concerning taxis and cosmos (Kosmos), in terms of institution building. This article addresses why China presents an instance of institution building by bargaining, while countries such as Iraq and Afghanistan offer instances of institution building by military force, then directs emphasis toward institutional and constitutional reform, and an evolution of Western law in non-Western cultures and developing nation- states such as China, Afghanistan, and Iraq. Although Hayek may have had contrary intentions, his discourse on taxis and cosmos (Kosmos), and spontaneous order, nonetheless, challenges a modern Western world to rethink its priorities and policies, and perhaps even foundational ideologies, especially in the realm of rebuilding non-Western cultures and developing countries.

Suggested Citation

  • M. Ulric Killion, 2005. "Western Institution Building:The War, Hayek’s Cosmos and the WTO," Development and Comp Systems 0503006, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0503006
    Note: Type of Document - pdf; pages: 46

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    Western; Institution building; F. A. Hayek; War; WTO; Cosmos; constitutions; laws; international; politics; economics; military; force; neo-realism; neo-liberalism; developmentalism; globalism; transnationalism;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • P - Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics

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