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LEAD ESSAY
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necticut. Those who live in Durham call this road (among themselves) the
Guilford Road, presumably because it informs the inhabitants of Durham
exactly where theyll get to if they travel it. The same road, at its Guilford
terminus, is called, the Durham Road because it tells the inhabitants of
Guilford where the road will lead them. One imagines that at some liminal
midpoint, the road hovers between these two identities. Such names work
perfectly well; they each encode valuable local knowledge, namely what is
perhaps the most important fact one might want to know about a road.
That the same road has two names, depending on ones location, demonstrates the situational, contingent nature of local naming practices. Informal, folk naming practices not only produce the anomaly of a road with
two or more names; they also produce many different roads with the same
name. Thus, the nearby towns of Killingworth, Haddam, Madison, and
Meriden each have roads leading to Durham, each of which the inhabitants
locally call the Durham Road.
Now imagine the insuperable problems that this locally effective folk system would pose to an outsider requiring unambiguous identifications for
each road. Lets imagine, for example, that you have been in an automobile
accident on the road between Durham and Guilford and are in danger of
bleeding to death. You call 911 and tell them you need an ambulance and,
when they ask your location, you tell them that you are on the Durham
Road. The ambulance dispatcher would then have to ask, Which Durham
Road? It is, thus, no surprise that the road between Durham and Guilford
is re-incarnated on all state maps and designations as Route 77: a scheme
whereby each state road is assigned a unique number in a potentially infinite series. There can now be no ambiguity about the road on which you are
bleeding. Each micro-segment of that route, moreover, is identified by
means of telephone pole serial numbers, milestones, and township boundaries. The naming practices of the state require a synoptic view, a standardized scheme of identification generating mutually exclusive and exhaustive
designations.
All vernacular place names, personal names, and names of roads or rivers
encode important knowledge. Some of that knowledge is a thumbnail history; for example Maiden Lane denotes the lane where five spinster sisters
once lived, while Cider Hill Road is the road up the hill where the Cider Mill
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and orchard once stood. At one time, when the name became fixed, it was
probably the most relevant and useful name for local inhabitants. Other
names refer to geographical features: Mica Ridge Road, Bare Rock Road,
Ball Brook Road. The sum of roads and place names in a small place, in
fact, amounts to something of a local geography and history if one knows
the stories, features, episodes, and family enterprises encoded within them.
For officials who require a radically different form of order, such local
knowledge, however quaint, is illegible. It privileges particular knowledge
over synoptic, standardized knowledge. In the case of colonial rule, when
the conquerors speak an entirely different language, the unintelligibility of
the vernacular landscape is a nearly insurmountable obstacle to effective
rule. Renaming much of the landscape therefore is an essential step of imperial rule. This explains why the British Ordinance Survey of Ireland in the
1830s recorded and rendered many local Gaelic place names (e.g., Bun na
hAbhann, Gaelic for mouth of the river) in a form (Burnfoot) more easily
understood by the rulers.
Vernacular Communities as Illegible to Outsiders
It is both striking and important to recognize how relatively little the
pre-modern state actually knew about the society over which it presided.
State officials had only the most tenuous idea of the population under their
jurisdiction, its movements, its real property, wealth, crop yields, and so
forth. Their degree of ignorance was directly proportional to the fragmentation of their sources of information. Local currencies and local measures of
capacity (e.g., the bushel) and length (the ell, the rod, the toise) were likely
to vary from place to place and with the nature of the transacting parties.
The opacity of local society was, of course, actively maintained by local
elites as one effective means of resistance to intrusions from above.
Having little synoptic, aggregate intelligence about the manpower and resources available to it, officials were apt either to overreach in their exactions, touching off flight or revolt, or to fail to mobilize the resources that
were, in fact, available. To follow the process of state-making, then, is to
follow the conquest of illegibility. The account of this conquest an
achievement won against stiff resistance could take many forms, for example: the creation of the cadastral survey and uniform property registers,
the invention and imposition of the meter, national censuses and curren4 de 45
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at the center of the field of vision more legible and hence more susceptible
to careful measurement and calculation. Combined with similar observations, an overall, aggregate, synoptic view of a selective reality is achieved,
making possible a high degree of schematic knowledge, control and manipulation.
The Invention of Scientific Forestry
I found this process strikingly evident in the invention of scientific forestry
in 18th-century Prussia and Saxony. An abbreviated account of forest science can serve both as a model for processes of state-simplification as well
as the advantages and disadvantages it entails.[2] The lens, as it were, for
this simplification was cameral science: the efforts to rationalize the revenue of the princely states. To that end, the forests were reconceptualized
as streams of salable commodities, above all so many thousands of board
feet of timber and so many cords of wood fetching a certain price. The
crowns interest we resolved through its fiscal lens into a single number
representing the revenue yield that might be extracted annually from the
domainal forests. The truly heroic simplification involved here is most evident in what was left out of this utilitarian and minimalist conception of the
forest. Missing were all those trees, bushes, and plants holding little or no
potential for crown revenue. Missing as well were all those parts of trees,
even revenue-bearing trees, which might have been of great use to the population but whose value could not easily be converted into fiscal receipts.
Here I have in mind foliage and its uses as fodder and thatch, fruits and
nuts as food for people, domestic animals, and game. Twigs and branches
as bedding, fence posts, hop poles, and kindling; bark and roots for making
medicines and for tanning; sap for resins, and so forth.
From a naturalists perspective, nearly everything was missing from the
states narrow frame of reference. Gone was the vast majority of flora:
grasses, flowers, lichens, mosses, mushrooms, shrubs, and vines, Gone too,
were reptiles, birds, amphibians, fish, and innumerable species of insects.
Gone were most species of fauna, except for the large game integral to the
aristocratic hunt.
The utilitarian state could, quite literally, not see the real existing forest for
the (commercial) trees. New techniques of measurement were developed.
Representative samples of the forest were designated; five classes of tree
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size (Normalbame) were specified, the timber yield of each was estimated
using the cone-volume principles of solid geometry, and a complete census
of a representative section was carried out to determine the distribution of
trees by size class. This knowledge, coupled with careful assumptions about
rates of growth made possible the tables from which the scientific forester
devised a plan of extraction based on what was assumed to be the maximum sustainable yield.
It is, however, the next logical step in German scientific forestry that commands our attention. That step was to attempt to create through careful
seeding, planting and cutting, a redesigned forest that was easier to count,
manipulate, measure, and assess. Thus was born the modern, production
forest: a mono-cropped (Norway spruce or Scotch pine), same-age, timber-farm planted in straight rows. The very uniformity of the forest vastly
simplified its management and exploitation. Forestry crews could follow a
few simple rules for clearing the underbrush, trimming and fertilizing; the
mature trees of comparable girth and length could be felled into the alleys
and marketed as homogeneous units to logging contractors and timber
merchants. For nearly a century, during which German scientific forestry as
a codified discipline became the world standard, the production forest
was a resounding success in terms of steady yields at low cost.
Redesigning the forest as a one-commodity machine, however, had, in the
long run, catastrophic consequences for forest health and production. The
mono-cropped, same-age forest was far more vulnerable to disease, blight,
and storm damage. Its simplicity and formal order, together with the elimination of underbrush, deadfalls and litter dramatically reduced the diversity of the flora, insect, mammal, and bird populations so essential to soil
building processes. Once the soil capital deposited by the old-growth forest
had been depleted, the new forest entered a period of steep decline in
growth and production. The term Waldsterben entered the vocabulary of
modern forestry science and led, in turn, to huge outlays for fertilizers, rodenticides, fungicides and insecticides as well as efforts to artificially reintroduce birds, insects and mammals that had disappeared. By redesigning
the complex and poorly understood ecology of the old-growth forest as a
veritable wood-fiber farm and bracketing everything else, scientific forestry
had destroyed a vernacular forest and a host of ecological processes that
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RESPONSE ESSAYS
ames Scotts fascinating essay reminds us that trade-offs are inescapable. Much useful local knowledge is indeed lost when names
and other descriptors of roads, rivers, and even family lines are
changed from their original, localized, and idiosyncratic expressions
into synoptic, standardized expressions that are meaningful to a larger and
more diverse group of people. In return, though, something useful is gained
namely, greater coordination among larger numbers of people.
But just how useful is this greater coordination?
If it is chiefly for commercial purposes, its almost certainly very useful. The
coordination of the plans, expectations, and actions of larger numbers producers, traders, and consumers results in more-specialized labor, greater
reliance on machinery and other capital assets (including human capital),
and improved abilities to diversify and, hence, to reduce the costs of
risks.
Or, to exploit a useful metaphor offered by Matt Ridley in his latest book,
The Rational Optimist, moving from idiosyncratic descriptors to synoptic
descriptors encourages ideas to become more promiscuous and, therefore,
more productive.
Ridley convincingly argues that much of our prosperity results from ideas
having sex with each other. One creative idea might contain one-tenth of
the (figurative) DNA necessary to conceive, say, a smart phone. That potential, however, isnt released until the idea mates with other ideas be it one
or one thousand other ideas that contain the rest of the DNA required to
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the Industrial Revolution; that is, it might have been possible for such standardization to emerge through purely private actions (in much the same
way that private railroads created standard time zones in Canada and the
United States). But it surely seems to be untrue that a state growing in both
scope and power necessarily diminishes the prospects for entrepreneurial
capitalism to take hold and bloom.
Markets are always opportunistic and never ideological. If the state, for
whatever reason, takes steps that reduce the costs of creating or serving
markets, entrepreneurs respond. Think of how credit card companies,
banks, and many other private firms use Americans Social Security numbers as a reliable and standard means of identifying individuals. My Social
Security number improves my ability to get credit from strangers. Keeping
track of the whereabouts and behaviors of Don Boudreaux would be a
much more challenging task than keeping track of the whereabouts and behaviors of the person who must, whenever he seeks a new line of credit, reveal his unique nine-number identification code. Scholars who study countries that fail to develop such as many countries in sub-Saharan Africa
often note the absence of such standardized, reliable identifiers of individuals.
A thoroughly impersonal string of numerals (and what is more impersonal
than being identified by a string of Arabic numerals assigned to me at birth
by the state?!) enables strangers to cost-effectively gauge relevant aspects of
my personality, such as my proclivity to pay my debts on time.
Does this advantage of Social Security outweigh its costs (the reality and
size of which I believe are awesome)? Im tempted to say no, but, honestly, I
dont really know. How do we weigh the higher taxes that Social Security
saddles Americans with against the benefits of widespread, impersonal, and
highly liquid consumer credit markets that use Social Security numbers as
reliable names for all Americans seeking credit?
All I can do all that anyone can do is to speculate. So I speculate that
as the demand for consumer credit rose over the past several decades, along
with improvements in technologies for tracking debtors, some clever entrepreneur would have devised something akin to todays Social Security numbers for use by private creditors to assess the creditworthiness and to track
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the behaviors of debtors and potential debtors. (Or perhaps the ideas of
several clever entrepreneurs would have had sex with each other in order to
conceive a usable means of identifying credit customers.)
Consumer credit markets might well have become as deep and as sound
or even deeper and more sound in the alternative world that I speculate
about above as those markets are today in actuality. If so, this benefit of
standardized identification would have been secured without the horrible
mess that is the Social Security systems distorting taxes and looming bankruptcy. But that Social Security numbers are among the sort of synoptic
names that Scott so intriguingly discusses is a fact that mustnt be lost
sight of.
James Scotts fact-filled essay offers much food for non-standard thought!
n his lead essay, James Scott writes about the efforts of German
foresters to create a redesigned forest that was easier to count, manipulate, measure, and assess, and throughout Seeing Like a State,
he uses this as a metaphor for various state projects to reshape the
complex, messy world to make it more susceptible to centralized measurement, control, and expropriation. Scott describes how states made modern
statecraft possible by forcing unruly peasants to conform to state-defined
names, weights, measures, and especially property rules, so that they could
efficiently be taxed, regulated, and conscripted. Im struck by the parallels
between this process and the efforts of todays incumbent media and software firms to domesticate the rapidly changing world of high technology.
The big difference is that this time, the centralizers are on the defensive.
The great media technologies of the 20th century, television, radio, and
movies, were inherently centralizing. They had high fixed costs that could
only be paid by large, hierarchical institutions, and the existence of these
costs allowed the institutions to shape the opinions of millions of people.
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Similarly, the development of increasingly sophisticated, but very expensive, computing devices starting in the late nineteenth century aided centralization by enabling large institutions to efficiently manage ever-larger
amounts of information.
The Internet and the microprocessor are reversing these trends, with profound social consequences. For most of the twentieth century, only a tiny
minority of people had access to the means to distribute creative works to
wide audiences. Now, anyone can do it for next to nothing, and the former
gatekeepers are furious. Using misleading property rights rhetoric, they
have lobbied for, and gotten, new legal privileges that make their respective
markets more amenable to centralized control.
Consider Hollywoods long-running conflict with the consumer electronics
industry. In the early 1980s, Hollywood came one Supreme Court vote shy
of outlawing the VCR, which it predicted (incorrectly, as it turned out)
would devastate the movie industry. In 1998, the movie industry lobbied
for the passage of the Digital Millennium Copyright Act, which gives copyright holders a legal veto over the design of media devices capable of playing their content.
Hollywood has used its authority under the DMCA to force consumer electronics manufacturers to comply with digital rights management schemes
that are a digital embodiment of the kind of legibility-through-simplification project Scott describes in Seeing Like a State. Scott argues that a single-minded focus on timber yields in state forests tended to short-change
other important values provided by the forest, such as kindling, wildlife,
herbs, and scenery. Incumbent media firms have a similarly narrow view of
their customers. They seek to reduce the infinite variety of ways customers
can interact with creative works down to a handful of standardized, usually
passive, activities that can be easily monitored, counted, and paid for.
Manufacturers wishing to produce devices capable of playing Hollywood
content are required to sign a licensing agreement dictating in great detail
how the devices must behave. In an effort to prevent unauthorized copying,
DRM schemes attempt to enumerate all of the operations consumers are allowed to perform, and require devices to perform thoseand only those
functions. This is why, for example, most DVD players dont allow you to
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that can be bought, sold, licensed, and put on balance sheets. The fact that
these technologies have only the most tenuous relationship to what the
engineers were doing was of little concern as long as the patents continued
generating licensing fees. After all, colonial officials didnt much care if the
property lines on their maps reflected actual or historical cultivation patterns so long as someone was paying the required taxes.
So software firms began building patent portfolios. As Gates and other
skeptics predicted, software patents have become so broad and numerous
that its almost impossible to build any large software product without infringing some. Today, most software companies dont even try to avoid infringement. Instead, they simply assume they will infringe and stockpile
patents of their own to deter anyone from suing them.
By the dawn of the twenty-first century, Microsoft had built a substantial
patent portfolio of its own. Now a large company itself, it was concerned
free software products were cannibalizing the market for some of Microsofts own proprietary products. And so Microsoft began threatening vendors who offered operating systems based on the free Linux kernel with
patent litigation. Although Microsoft has declined to produce a specific list
of patents being infringed, the sheer size of Microsofts patent portfolio and
the likelihood of inadvertent infringement makes the threat credible. And,
of course, Microsoft now lobbies in favor of patents on software.
Proprietary software firms are, understandably, focused on maximizing the
number of copies they sell. But the licensing terms required to ensure that
each user pays for his or her copy the has a side effect of undermining three
of what Free Software Foundation founder Richard Stallman calls the four
software freedoms: the freedom to use, study, share, and modify software.
Proprietary software offers customers the first freedomusefor a fee, but
the other three freedoms are typically not available at any price, because
they conflict with the vendors business model. Ordinary consumers may
not care about these other freedoms, since they lack the knowledge and
skills to take advantage of them. But many computer programmers care
about them quite a bit, because they make the software we use much more
useful. It allows us to fix bugs, add new features, and diagnose compatibility problems. And as users of Firefox can appreciate, preserving these freedoms for geeks often has spillover benefits for the general public.
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Once again, a myopic focus on the cash-for-copies business model has led
to the creation of technology thats dramatically less useful than it could be.
Just as German foresters ignored uses of the forest that could not produce
revenue for the crown, so software firms focus on selling copies of software
has led them to ignore uses of software that cannot be easily monetized.
Some of the most sophisticated users of software have become increasingly
dissatisfied with this arrangement and have begun building their own alternative base of software, called free software, that is not so limited. You
might say that free software is the natural forest to proprietary softwares
production forest.
In both of these disputes, incumbents have used the rhetoric of property
rights to justify their efforts to seize control over wealth they did not create.
Hollywood didnt invent the Blu-Ray player, flat-screen TVs, or other innovations, but under the banner of property rights they have demanded, and
gotten, a veto over the evolution of these technologies. Similarly, patent litigation in the software industry is rarely about actual copying of a competitors code. It typically involves transferring wealth from firms that produce
innovative products to firms that are adept at navigating the patent system.
Framing these controversies as disputes over property rights has allowed
Hollywood and the patent bar, respectively, to claim the high ground for
what might otherwise be perceived as simple rent-seeking.
Because libertarians reflexively (and correctly) favor strong enforcement of
property rights, we need to be careful about too credulously accepting the
property rights frame for proposals to create or expand legal privileges.
Such arguments can be found in a wide variety of fields, including gene
patents, the recording industry, and spectrum policy. Clear and predictable
property rules are a tremendous engine of economic growth and individual
liberty. But Seeing Like a State reminds us that the creation of new property rights can sometimes be a process of expropriation, with the state inventing new rights to transfer wealth to parties with political power.
Reasonable people can disagree about whether the new property rights
whose creation Scott describes in Seeing Like a State had positive consequences in the long run, but its hard to deny that some of the short-run
consequences were deeply illiberal, transferring wealth from ordinary peasants to those who had the closest ties to the state. When large firms deploy
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the rhetoric of property rights in defense of creating new legal privileges for
themselves, libertarians especially need to employ an appropriate degree of
skepticism.
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No injustice or wickedness has ever attached to the glorious household of my kind lord, but it is ever full of mercy and overflowing to
supply the needs of others. On account of this I, the wretched slave
of my good lord, wish to bring it to your lordships knowledge by
this present entreaty for mercy that I serve my kind lord as my fathers and forefathers did before me and pay the taxes every year.
And by the will of God my cattle died, and I borrowed the not inconsiderable amount of 15 solidi. Yet when I approached my
kind lord and asked for pity in my straits, those belonging to my
lord refused to do my lords bidding. For unless your pity extends
to me, my lord, I cannot stay on my ktema and fulfill my services
with regard to the properties of the estate. But I beseech and urge
your lordship to command that mercy be shown to me because of
the disaster that has overtaken me
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(which he is not supposed to be). Anoup is appealing to a long family history of dependence of himself and his ancestors on the various Flavii Apionoi and Flavii Strategioi of past generations. Justinian thinks that things
would be better served if the countryside were properly legible to him and
he could force reality to correspond to the legal order of slaves and citizens,
tenants and landlords interacting through contract, and taxpayers. Flavius
Apion would prefer that the order be one of proto-feudalism: that all the
Anoups know and understand that they are at his mercy, and that the emperor is far, far away. And we dont know what Anoup thinks. We do know
that it does not sound as though he experiences the lack of legibility of the
countryside to the emperor and his state as a full and complete liberation.
And we do know that the Emperor Justinian was gravely concerned about
the transformation of his soldiers into bucellarii, into the dependent
bully-boys of the landlordsboth because it meant that they were not on the
borders where they belonged and because it disturbed what he saw as the
proper balance of power in the countryside and what he saw as the emperors justice.
Justinians big (and to him insoluble) problem was that the Flavius Apion
whose bully-boys beat up his tenants when they displeased was the same
Flavius Apion who headed Justinians own bureaucracy.
Thus when James C. Scott speaks of how local knowledge and local arrangements having the ability to protect the people of civil society from an
overmighty, blundering state, I say perhaps and I say sometimes.
It is certainly the case that the fact that Sherwood Forest is illegible to the
Sheriff of Nottingham allows Robin of Locksley and Maid Marian to survive. But that is just a stopgap. In the final reel of Ivanhoe the fair Rebecca
must be rescued from the unworthy rogue Templar Sir Brian de Bois-Guilbert (and packed offstage to marry some young banker or rabbi), the Sheriff
of Nottingham and Sir Guy of Gisborne must receive their comeuppance,
the proper property order of Nottinghamshire must be restored, and Wilfred must marry the fair Rowenaand all this is accomplished by making
Sherwood Forest and Nottinghamshire legible to the true king, Richard I
Lionheart Plantagenet, and then through his justice and good lordship.
A state that makes civil society legible to itself cannot protect us from its
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THE CONVERSATION
on Boudreaux makes an interesting point about the way standardization facilitates social cooperation and the division of labor. But I think its important to remember that the distinctive
feature of the state-building projects James Scott describes
wasnt just standardization, but coercion. People were compelled to adopt
new surnames, geographical indicators, property boundaries, and the like
whether they liked it or not. And most of the time they didnt like it, because it was obvious that the point of the exercise was to make the populace
more amenable to centralized control.
Given how many of the standardized features of modern life have their origins in state-driven projects, it might seem like state compulsion is required
to achieve large-scale standardization. But this is not so, as we have an example of an almost perfectly non-coercive standardization project: the Internet.
Its true that the Internets early development was funded by the federal
government, and the feds did encourage and subsidize Internet adoption
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within academia during the 1980s. But the Internets most explosive
growth happened after the Internet was privatized during the 1990s. The
vast majority of nodes on the Internet today joined the Internet after the
network had become independent and self-financing. Millions of private organizations joined the Internet because they wanted access to the rapidly
growing universe of content it offered.
The Internet offers its users an unprecedented degree of standardization
and legibility. Every computer on the network (more or less) is identified by
a unique string of 32 ones and zeros known as an IP address. The entire Internet has adopted the Domain Name System, a kind of online yellow
pages that converts names like cato.org or google.com into 32-bit IP
addresses. And layered on top of that is the Uniform Resource Identifier, or
URI, which, as its name suggests, allows anyone in the world to uniquely
identify any online resource, such as this blog post.
Theres one crucial difference between this system of legibility and the
state-driven systems of legibility that are the focus of Seeing Like a State:
the Internet makes it easy to find computers, people, blog posts, and the
like, but only if they want to be found. Because theres no central authority
controlling access to the network or verifying that people are who they say
they are, individuals on the Internet are free to maintain multiple independent identities or they can decline to identify themselves at all.
This is great for the idea orgies Boudreaux lauds, but as we might expect,
it drives state officials crazy. Theres a perennial debate in tech policy circles about anonymity on the Internet. Law enforcement officials and assorted busybodies are perpetually complaining that the Internets
anonymity-friendly architecture facilitates a wide variety of harms, including online harassment, illicit file-sharing, and the spread of child pornography. These critics regularly demand that the Internet be re-architected to
facilitate centralized control, although they rarely have a clue about how to
do it.
Thus we should be cautious about ascribing the beneficial effects of statedriven standardization projects to state compulsion. Once the state has
compelled a nations citizens to adopt a standardized scheme, its not surprising that private parties begin to use that scheme for their own purposes.
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By Donald J. Boudreaux
The Conversation
September 22, 2010
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enry Farrell writes that Hayek argues that markets are superior because they allow the dispersed bits of incomplete and
frequently contradictory knowledge which all the separate individuals possess to be aggregated in a useful way. He then
faults Hayek for failing to acknowledge a key limitation of the price mechanism: its tendency to destroy knowledge in the process of defining standardized commodities. In attributing to Hayek the view that markets are
superior, Farrell conspicuously fails to mention: superior to what? This
omission allows Farrell to construct a curious straw man of Hayeks views,
suggesting that Hayek championed large-scale commodity markets over
smaller-scale markets that employed more local knowledge. Although its
possible Hayek staked out this position somewhere in his voluminous writings, its certainly nowhere to be found in the famous essay Farrell linked
to.
That essay, The Use of Knowledge in Society, critiques the tendency
among economists to treat economic information as given to centralized
decision-makers. He explains the working of the price system as a counterexample to this high modernist conceit. Its true, of course, that the price
mechanism selectively discards some knowledge in the process of aggregating and transmitting other knowledge. But this isnt a special flaw of the
price mechanism. Its inherent to all economic processes that involve more
than one human being. All economic actors transmit information to others
in simplified, standardized ways that communicate the information they regard as most important and discard information they regard as less important. Its true, of course, that some international commodity markets tend
to be particularly ruthless in this respect, but I see no reason to interpret
Hayek as championing this type of market in particular. The small-scale
Italian tomato markets Farrell lauds here are markets, and Hayeks arguments apply with at least as much force to them as they do to the international agricultural commodity markets Scott is criticizing.
Indeed, Hayek is quite explicit about the fact that the price mechanism is
just one example of a bottom-up social institution that facilitates large-scale
cooperation. Beginning with a line from Alfred North Whitehead, Hayek
wrote:
Civilization advances by extending the number of important operations
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his month weve been fortunate to have some very astute outside
commentary on the discussion. Henry Farrell suggests that Seeing Like a State undermines Hayekian economics. Briefly, we
face a tradeoff between homogenization of products, bringing
economies of scale and local knowledge, supposedly the engine of a lais30 de 45
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sez-faire economy:
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We werent able to determine exactly how many grades of crude oil there
are, but its quite a few. A better example might be the elemental commodities, although for these it is difficult to see the value to the consumer of the
lost producer-side local knowledge, aside from knowledge about externalities and titles. These though remain very important and are often the basis
of competition in the elemental commodities markets.
Moving from information about commodities to information as a commodity, the Cato Institutes Director of Information Policy Studies Jim Harper
writes:
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I stumbled across Scott when I was researching my book on identification policy, Identity Crisis. As Scott observes, naming systems
for people have been altered over time from vernacular to formal,
the latter serving the needs of governments and large institutions.
The next step in the process is numbering (well underway, the Social Security number) and full-fledged national ID and possibly
world ID systems. Such systems would be used to peg humans into
their place in governmental, economic, and social machinery, obviously at a high cost to liberty and social mobility.
Twice in the paragraph above I used the passive voice to hide the
actor. It was governments, of course, that pushed formal naming
systems, but both governments and corporations will use our increasingly formalized and machine-processable naming systems to
assign people their roles. Scott is far from a libertarian battler
against government power, and he specifically disclaims having
Hayekian aims in his book. This makes it all the more powerful
and opens the door to interesting pathways of thought, parallels
between corporate environmental destruction and government intervention in economic life, for example.
As always, your letters remain welcome. Send them to jkuznicki at cato dot
org. Further feedback on this months issue is encouraged, and the four
principals are invited to continue discussing through the rest of the month.
ditors note: Political theorist Jacob T. Levy of McGill University sends us his thoughts on this months discussion, which we
are pleased to share in full.
I begin with a few words of unembarrassed admiration. James Scotts Seeing Like a State, from which his essay is largely drawn, is one of the most
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important books in political science of the past twenty years (rivaled by the
recently published companion volume, The Art of Not Being Governed: An
Anarchist History of Upland Southeast Asia, much of which could have
been called The Art of Not Being Seen by States.) It is the only work of professional political science that I normally use in my introductory course in
political theory, and I think that we political theorists will still be some time
in fully incorporating its lessons.
I am also among the books libertarian and Hayekian admirers, of whom
there have been many since the book was first published. I think that we
libertarians, too, will be some time in fully incorporating its lessons. In this
essay Id like to point toward some of these. Since Scott writes not primarily
as a political theorist and not at all as a libertarian, these may not be the
lessons he intends, a point to which I will return at the end.
Adam Smith, generally thought of as the first systematic analyst of the market economy, was in my view the first major analyst of the modern state
who saw it more or less completely: its permanent system of taxation and
debt, its permanent expenditures on public works, its standing army, its bureaucratic structure, its colonial and imperial ventures, its complicated relationship with economic growth and prosperity, and in general the inevitability of a system of police or policy. This is not wholly distinct from
his work as an analyst of the market; standing armies and professional bureaucracies are aspects of the division of labor, and the wealth of nations is
a key determinant of their ability to fulfill their state projects. But it is
partly distinct.
In the final edition of the Theory of Moral Sentiments, Smith wrote:
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The man of system is apt to be very wise in his own conceit; and
is often so enamoured with the supposed beauty of his own ideal
plan of government, that he cannot suffer the smallest deviation
from any part of it. He goes on to establish it completely and in all
its parts, without any regard either to the great interests, or to the
strong prejudices which may oppose it. He seems to imagine that
he can arrange the different members of a great society with as
much ease as the hand arranges the different pieces upon a chessboard. He does not consider that the pieces upon the chess-board
have no other principle of motion besides that which the hand impresses upon them; but that, in the great chess-board of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might chuse to impress upon it.
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the superiority of the market order to what the man of system could design, and of the insights of Hayek into spontaneous order. But the (mildly)
famous man of system paragraph does not occur in a discussion of economics and markets, but in one of constitutional reform and state capacitybuilding. The man of system is contrasted with the better reformer who
will leave unmolested the great orders and societies, into which the state is
divided and the confirmed habits and prejudices of the people. While he
should consider some such old privileges and habits as in some measure
abusive, he will content himself with moderating, what he often cannot annihilate without great violence. Here is the conclusion of the indictment of
the man of system:
Hayek, I suppose, would have had no quarrel with this, but it is far from his
central interests. Rather, in this critique of the state policymaker who will
flatten society in the effort to make sure that his policies operate more
smoothly and without interruption or resistance, we should see an antecedent of the work of James Scott.
To be sure, Smiths concerns arent precisely Scotts. Smiths solicitude for
the established privileged orders (presumably, though not explicitly, those
that were to be overturned during the French Revolution) sounds rather
more like what Brad DeLong worries about in Scotts approach than it does
like Scotts own aims. And Smith was decidedly ambivalent about a case
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that might have been nearer to Scotts heart: that of the Scottish highlanders, able to partly resist incorporation into the Scottish and then
British states for so long thanks to their geography, and thereby shaping
those states themselves. (The Art of Not Being Governed is in large part
about the resistance to states and systems that is made possible by geography, specifically hills and mountains. The book is centered in Southeast
Asia but makes mentions of parallel cases around the world the Atlas
Mountains, the Alps, the Appalachians, and the mountains of South America all appear as geographic spaces into which those who wish not to be
governed or conquered have sometimes escaped to form rival social orders.) But the resemblance is real.
Moreover, Smith unlike, say, the social contract theorists understood
that the state was a sometimes thing. Like Scott, Smith treated it as especially associated with settled agricultural and commercial societies. Unlike
the social contract theorists, he did not think that that means agriculture
was a prerequisite to social or political order and organizations; there were
other social and political orders associated with other kinds of production.
This is one lesson that I think political theorists have yet to properly learn.
Like our social contractarian forbears, we too easily imagine the modern
state as natural and unquestionable. We moreover too easily assume away
the information and knowledge problems that in very different ways
have so preoccupied Hayek, Foucault, and Scott. We ask what states should
do without wondering what they would have to know in order to do it, or
how they would gain that knowledge, or what the effects would be of their
attempts to do so. The combination of Seeing Like a State with The Art of
Not Being Governed reveals a world in which states are particular kinds of
social projects, not natural preconditions for social order; in which states
knowledge and penetration of their societies comes in degrees; and in
which states activities may create their own limits by provoking those being governed.
Another lesson applies mainly to political theorists critical of liberalism.
The idea that freedom can mean freedom from the state, or freedom from
state interference, has come in for widespread abuse over the past generation. Freedom, we are assured, is a civil condition, one that conceptually
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Here, I think, is a lesson for Scott as well. I suspect that Scott has been
mildly embarrassed by the libertarian enthusiasm for Seeing Like a State,
and since its publication hes been at pains to be clearer than he was in the
book that the market can also be a force of high-modernist social flattening.
But he has not (that Im aware of) pushed the thought very far, or told his
readers much about when the market is that kind of force on its own, and
when it is so when joined to state power. The cash nexus is a key instrument of market homogenization of the world; it makes all things fungible
and countable by a common metric, with real costs and distortions to the
complexity of the social world. But a recurring idea in Scotts work has been
that peasants are forced into the cash nexus by tax collectors, and by state
officials (colonial and otherwise) who seek a common metric for extracting
social resources. The great right angles of land in the American Midwest
that Scott uses in Seeing Like a State to show that commercial agriculture
is high modernist descend from the American imperial state projects of expropriation, resettlement, and conversion to agriculture from the Northwest Ordinance onward. Now, an indefinitely spreading market in land in
itself homogenizes: it makes all land fungible. And the existence of a high
market price on my land creates pressure for me to sell, at whatever cost to
my local knowledge and customs. But it does not pressure me in the same
way that American Indians were pressured by the Union Army, and the difference seems to me morally very significant.
I am sure that Scott is right that market and state alike can be homogenizing and reductionist forces. And I am sure that states making use of markets can be especially thoroughgoing homogenizers. But in his eagerness to
confirm that he is no simple cheerleader for the market, I hope that Scott
does not lose the interest in agency and sensitivity to power that marks his
work. I hope that he too distinguishes moments of state-market fusion,
with state actors deliberately flattening social facts in order to encourage
and make use of commercial wealth, from market forces themselves, and
that if he thinks the latters homogenizing effects as destructive as the formers, that he is careful to explain, how, and when, and at whose hands
and with what consequences for those who resist the homogenization.
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have been struck by both the quality and breadth of the responses to
my essay and, its clear, to the argument in Seeing Like a State that
lies behind it. In some cases, I am somewhat at a loss to reply inasmuch as I am not an economist, not a well-read libertarian, not a political philosopher, and not a specialist on intellectual property and freedom.
Given these handicaps, let me try to bundle together a few repetitive
themes and at least try to clarify my position and, in some cases, to think
through possibilities I had not addressed or envisaged in my essay or in the
book.
Standardization and Power
I take the point that markets are inherently standardizing. I also take the
point that knowledge is lost in the process and that there may be (even
massive) gains in wealth and emancipation. As I point out in Seeing Like a
State, the invention of the standardized French citoyen bearing equal
rights in place of the medieval estates was surely a great emancipation
though, as I also point out, it also made possible, for the first time, the conscription for Napoleons total war.
One might say that the commodity form of large-scale trade and capitalism
is the locus classicus of standardization: the standard bushel of wheat or
maize, the ingot of pig iron, the bolt of linen. More broadly, I would endorse Polanyis argument that the factors of production so central to classical economics, land and labor, are the commodity names for nature/the
environment on the one hand and human life on the other. They enter classical economics only in their standardized form of acres factory hands,
and so forth.
What would seem important to a libertarian, and not just a libertarian, is
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the way in which this standardization comes about and, in particular, the
degree to which it is a coercive process. Judgments about coerciveness are,
with some exceptions, not either-or questions but matters of degree. Let
me take three examples along the spectrum: state-designated and created
ethnicity, common law, and language.
In the case of state-designated ethnicity, the process is generally highly coercive: an official designation is made (even if it is originally a voluntary
self-description) and then it is frozen and, depending on the circumstances,
the ethnic is then treated according to the regulations governing that category. Thus, when the Dutch arrived in Batavia, on the island of Java, they
discerned a group whom they called the Chinese. The people in question
do not describe themselves in this way. Their affiliations were fluid, and
their customs bled imperceptibly into the range of cultures around them.
Nevertheless, the Dutch, in their Linnaean mania, erected a Chinese zone,
codified what they take to be its customary law, set up courts and schools
and police exclusively for the Chinese, and appointed customary Chinese
headmen. Lo and behold, after 60 years or so of being funneled into ethnic
traffic patterns, a once largely fictitious category became a lived identity. It
was essentially a coercive, albeit slow-motion process of state-created ethnic-fabrication that, at the end of the day, appears as an embraced identity.
Juridical racial hierarchies, as a group-creation process as found historically in South Africa and the United States operate essentially this way.
The standardization of common law seems to me to be an intermediate
case. It seems more open to innovation and adjustment from county magistrates, practice, and custom, although, over time, as precedents and decisions accumulate, it becomes largely a received codification for subsequent
generations, a codification open to adjustment only at the margin. And, of
course, the source of innovation is largely confined to elites (even if local)
and not the tenants and laborers, let alone the proletariat.
Language, it seems to me, is perhaps the best example, and one to which
Hayek himself referred, of a relatively un-coercive standardization. The
grammarians, the Academies, and the literati may aspire to control language use but are generally unable to do so. The spoken language especially
remains open to all sorts of innovations which, if found expressive or useful, go viral and become part of the repertoire of speakers. Language is
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not, of course, anything like a pure democracy but for something so standardized it is a pretty good model of open-source software that all speakers
may use and contribute to. Libertarians, and not just libertarians, might
aim for institutions that were more like languages and less like markets.
Which Brings Me to Markets
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strive mightily to transform uncertain and often small profits into rents
guaranteed by force, law or influence at the enforcement stage (i.e. corruption).
For pirates, narco-statelets, and early capitalism (e.g. Rockefeller) the currency convertible to rents was force, either the buying of police protection
or paramilitary forces operating often with the complicity of the state. In
more mature democracies, such brute force has been replaced by the influence on the media, on legislation, on regulatory agencies, on courts, and on
elected officials made possible by the accumulation of well nigh permanent
disparities in wealth and purchased expertise. This is what Antonio Gramsci pointed to in his analysis of hegemony and why universal suffrage did
not bring about the revolution by peaceful means in Italy.
Where this disparity in financial wherewithal is great, it accomplishes the
same alchemy as successful piracy: it turns a competitive market of pricetakers into an oligopoly of price-givers who, one might say, purchase their
secure rent-seeking opportunities by their enormous advantages as purchasers of the policies they require. Yes, they quarrel among themselves
(even Lenin saw that) and their advantages can be temporarily nullified by
economic crisis or war. But the tendency toward the accumulation of these
strategic, positional resources by wealth and property holders in mature
democracies seems undeniable.
The market in such circumstances is, to be sure, as Hayek observed, still a
form of tacit coordination that could not conceivably be achieved by imperative coordination. But the positional advantage of some players is so overwhelming and entrenched that the deck is stacked against the vast majority
of economic actors and citizens. As a colleague of mine is fond of saying, the
political system is run for the benefit of the top 15% of income earners (OK,
lets even say 20%) and the trick of conservative consolidation is to use
some of the resources of this elite 20% to make certain that the next thirty
percent of the income earners fear the bottom 50% more than they envy or
resent the top 20%. Judging from public policy since at least the Reagan
era, this political hegemony is secure and its influence on legislation is further buttressed by massive lobbying at the regulatory stage.
Were I a libertarian, I think I would find it hard to defend a market so
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In the case Timothy Lee discusses, of media and the digital revolution, I
wonder if the concept of enclosure might not serve us well as a metaphor.
The original enclosures in England were brought about by legal acts of Parliament (a body of substantial landholders, of course), then enforced on the
ground by the police power and magistrates of the state. Are the large players in the media world not also identifying novel property rights and then,
by dint of their grip on the legislative process and legal muscle, enclosing
them so they yield reliable rents protected by law? As I understand it, this
process has nothing to do with efficiency, let alone democracy. In addition
to their political hegemony, the deep pockets of the large players (Microsoft, Amazon, Google) are such that they can simply buy out any upstart
that might even remotely threaten their position. This pattern I gather is so
understood that many startups are devised precisely to make themselves attractive to such a buyout.
Legibility Is Morally Neutral
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