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What we need and can hope to achieve is not more power in the hands of irresponsible international economic authorities but, on the contrary, a superior political power which can hold the economic interests in check, and in the conflict between them can truly hold the scales, because it is itself not mixed up in the economic game. The need is for an international political authority which, without power to direct the different people what they must do, must be able to restrain them from action which will damage others. The powers which must devolve on an international authority are not the new powers assumed by the states in recent times but that minimum of powers without which it is impossible to preserve peaceful relationships, i.e., essentially the powers of the ultra-liberal 'laissez faire' state.

Friedrich Hayek#30

EconomicsAuthorityGovernancePeaceInternational relations

About this quote

What does it mean?
International peace needs a political authority that restrains economic harm rather than directing action.
In plain terms
Global rules should stop harm but not control what people do.
What can you take from it?
Restraint is better than direction for peace.

Where it applies

  • international relations
  • trade policy

Putting it to work

  • limit economic interference
  • focus on harm prevention

Questions to consider

  • What powers do global bodies need?
  • Should economics be political?

Another view

Global enforcement often lacks teeth without direct control mechanisms.

More from Friedrich Hayek

  1. To undertake the direction of the economic life of people with widely divergent ideals and values is to assume responsibilities which commit one to the use of …

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  2. It is no accident that on the whole there was more beauty and decency to be found in the life of the small peoples, and that among the large ones there was mor…

    Permalink to quote #31
  3. 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

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