Mong Daastöl, Arno --- "Friedrich List (1789-1846)" [1999] ELECD 41; in Backhaus, G. Jürgen (ed), "The Elgar Companion to Law and Economics" (Edward Elgar Publishing, 1999)

Book Title: The Elgar Companion to Law and Economics

Editor(s): Backhaus, G. Jürgen

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781858985169

Section: Chapter 34

Section Title: Friedrich List (1789-1846)

Author(s): Mong Daastöl, Arno

Number of pages: 17

Extract:

34 Friedrich List (1789-1846)
Amo Mong Daastol


Introduction
Friedrich List was one of the earliest and most severe critics of the Classical
School of Economics, the tradition of the Physiocrats and Adam Smith. His
theoretical system is an empirically oriented system, in the sense that he
claimed it to be based on historical experience. It is nonetheless logical and
therefore coherent. List is generally known as a proponent of a protective,
nationalist economic policy and of railroad construction in the early 19th
century. This is only correct from a superficial point of view, as his funda-
mental ideas were far wider reaching, dealing with questions like the ultimate
and immaterial basis of economics and of civilization, within a dynamic
long-term, global perspective.
List agreed with Smith on the desirability of global free trade. He claimed,
however, that instant and radical free trade would lead to a monopoly under
the strongest nation, technologically and economically. Other nations there-
fore had to be lifted up to the level of the leading nation. This had to be done
gradually through legal and regulatory arrangements, involving, among other
instruments, limited and differentiated protection at home and international
legal agreements.
List may be a greater free trader than his main adversary, Adam Smith, in
the sense that List's strategy would promote long-term competition to a larger
degree than would Smith's strategy, and thereby promote wealth creation
more efficiently. This is a matter of perspective, of time, and of economic
complexity, ...