THE STATE, THE MARKET AND ECONOMIC-DEVELOPMENT - A 2ND LOOK AT SMITH,ADAM IN THEORY AND PRACTICE

This article looks al the place of government in the development of ma rket economies. Using ideas from Adam Smith, and illustrations from An glo-American economic history, it shows how government was deeply invo lved in creating the conditions for capitalism and in moulding a susta ining environment for private enterprise. Despite the claims of contem porary laissez-faire ideology to the contrary, the emergence and the m aintenance of a capitalist economic system always depend, at least in part, on an effective state.