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The problems raised by a conscious direction of economic affairs on a national scale inevitably assume even greater dimensions when the same is attempted internationally. The conflict between planning and freedom cannot but become more serious as the similarity of standards and values among those submitted to a unitary plan diminishes.

Friedrich Hayek#27

Attribution disputed; shown as originally published.

FreedomPlanningInternational relationsGlobalization

About this quote

What does it mean?
Hayek warns that directing economies centrally becomes harder and more conflictual at an international level where standards and values differ more.
In plain terms
Central planning creates bigger problems internationally than it does within one country.
What can you take from it?
Planning clashes more with freedom as cultural diversity increases.

Where it applies

  • global policy
  • trade negotiation
  • international law

Putting it to work

  • prioritize local decision making
  • limit international mandates

Questions to consider

  • Is global coordination ever possible?
  • How do we balance unity and diversity?

Another view

This overlooks successful international coordination efforts.

More from Friedrich Hayek

  1. If we were to make no better use of victory than to countenance existing trends in this direction, only too visible before 1939, we might indeed find that we h…

    Permalink to quote #26
  2. Who imagines that there exist any common ideals of distributive justice such as will make the Norwegian fisherman consent to forego the prospect of economic im…

    Permalink to quote #28
  3. If the resources of different nations are treated as exclusive properties of these nations as wholes, if international economic relations, instead of being rel…

    Permalink to quote #25

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