Market as Coordination Without a Leader

“The market is an organizational instrument. It allows coordination without the need for a leader. That is why it is much more effective than socialist centralization. Of course, a market does not function on its own. Arbitration mechanisms are necessary to prevent the strongest from corrupting the system. But once the rules of the game are established and stable, players can be freed. In pursuit of their interests, they will achieve what no organization can and enable the accumulation of wealth that drives development. This accumulation of wealth can generate tensions, especially in new countries, but the State remains the master of the game and, through taxation and laws, sometimes through direct allocation of resources, it can therefore reduce negative effects and achieve a redistribution that maintains the balance of society.”

“He governs best who governs least. (Lao-Tzu, Seuil, 1965)”