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The Unpremeditated Consequences, Harmony, Completeness and Economic Systems: "The Invisible Hand" Visualization

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Author(s): V. Lipov

Journal: Economics of Development
ISSN 1683-1942

Volume: 53;
Issue: 1;
Start page: 80;
Date: 2010;
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Keywords: harmony | institutions | complementarity | an invisible hand | the unintended consequences of social and economic systems.

ABSTRACT
The Invisible hand as a motive force of the efficient social-economic systems (SES) formation is considered within the bounds of the categorical series: "unforeseen consequences", "invisible hand", "harmony", "completeness". The basic conceptual views at the above-mentioned concepts are presented. Their evolution in the process of the economic form of management development is retraced. The two-measured conception of institutional completeness (IC) as a factor of SES formation is suggested. Its basic components are the hierarchical IC, forming the SES structural foundation, and the functional IC, performing its functioning. The unpremeditated consequences become apparent in the lack of coincidence of the economic subjects activity aims and their results. Their appearance is caused by the influence of general system factors, used as the behavior targets in their unobvious intentions. This phenomenon was called "an invisible hand". With the references to the works of A. Smith, J. Shumpeter and contemporary economist D.Arrigy it is shown in the article that it is appropriate to speak not about the "invisible hand" of the market, but Providence. The proportionality of elements and system as a whole are supposed as a harmony. The contrary views at the social harmony essence in the concept of pre-established harmony, spontaneous order, harmony as a maxim satisfaction and harmony of interests are presented. The methodological sources of these contrary views at the "invisible hand" and harmony essence are in the different vision of a part and the whole role in SES formation. The idealization of a part puts a market, "non-pre-established harmony" and spontaneous order at the first place; of the whole-the Providence, pre-established harmony and institutions. The IC proposed conception gives the opportunity to integrate both approaches. The hierarchical IC as a structural component of SES is formed on the basis of a part priority and the functional – on the basis of the whole.
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