INSTITUTIONALISM AND ECONOMIC DEVELOPMENT
In: Social science quarterly, Band 50, Heft 4, S. 1037-1054
ISSN: 0038-4941
T. Veblen's conception of technology as containing an 'inscrutable' force impelling it forward & constituting a dynamic factor for ED is analyzed. Veblen is found to have been confused by his adoption of the sci'st's pose of lofty superiority to moral judgment. But he was right in suggesting that superstitions, taboos, & tradition-encrusted status systems work at cross-purposes with the technological process. While anthrop'ts have understood that beliefs, ceremonies & taboos that seem quite irrational to the Western mind bind communities together, they have underemphasized the fact that these aspects of culture likewise make it impossible for the people in question to live better. The over-all ED of any people is conditioned by the interaction of the dynamism of technology & the inhibitory force of instit'ized tradition. This is true for Western society as well as all others. Econ progress is conditioned by the degree of flexibility or of obduracy of instit'ized tradition, one of the most obdurate of which is nat'lism. Industr economies cannot persist through a regime of nuclear warfare based on nat'list sentiments. The instit'alist theory of econ progress is contrasted with Adam Smith's price theory. It is noted that to most avowed instit'alists & to virtually all other econ'ts, instit'alism is not a body of theory. Rather, its effect has been to produce or accentuate a certain degree of disenchantment with various aspects of the prevailing econ scene & a certain degree of impatience not merely with traditional price theory but even with theory as such. Thus the instit'alists as a group have been empiricists rather than theorists. Price theorists on the other hand are not convinced of the usefulness of efforts to reduce the economy to a series of equations, but feel that it is necessary to make specialized studies of an increasingly large number of particular areas. Veblen's work offers the beginnings of a unified field theory for this. It is a technological theory which contains a value criterion re the meaningfulness of improvement. This is the promise of instit'alism. M. Maxfield.