Spontaneous Order: An Introduction

Introduction

When we think of the word “order,” we might imagine a plan that tells us how to organize things. Or a command coming from some authority figure. Or a social hierarchy with designated ranks for people. All examples of a top-​down “constructed” order. 

But not all order is the product of a design or mandate. For example, think of the weather, or of the laws of physics. There is no central organizer of these phenomena. They are part of nature, so we consider them “natural order.”

When we include people in the equation, order can arise spontaneously. As an unintended consequence of individual human action, both simple and complex systems can emerge. No plan needed. This is, in economics and the social sciences, known as “Spontaneous Order.” 

Welcome to Lib​er​tar​i​an​ism​.org’s Learning Hub: An Introduction to the Concept of Spontaneous Order

Definition

Spontaneous Order refers to the patterns and systems that emerge as an unintended consequence of human action. Although it is a concept frequently associated with microeconomics, it is part of the field of the social sciences, explaining how a wide range of phenomena emerge. 

As its name suggests, the main feature is that it is not designed by a person or institution, but it emerges spontaneously once individuals are left to pursue their private interests. In other words, order emerges as a result of individuals’ instincts, habits, experiences, and evolution, not deliberate rational planning based on the designs of any individual or group. 

For example, almost all languages emerged organically from the interaction of many individuals communicating with each other over time. They were not designed or enforced by a central planner. So, even the most essential tool for human interaction was not imposed from the top, but arose from the contributions from many, creating a spontaneous order.

Context

Although it is a concept associated with modern market economics, the ideas around spontaneous order have existed since ancient times. For example, the Chinese philosopher Chuang Tzu praised the virtues of self-​interest and “non-​governing”.

In the 16th century, the Salamanca School applied theories of spontaneous order to better understand the unplanned nature of markets. A century later, Sir Matthew Hale used it in the study of law, describing the evolution of common law as a spontaneous order based on experience, or jurisprudence, instead of the prevailing theory that it derived from abstract reason, as statutes do.

The Development of the Spontaneous Order Theory

In the 18th-​century Enlightenment, a more comprehensive theory started to form. Adam Ferguson, in his analysis of the development of societies, asserted that the institutions under which men live are not deliberately created, but they form through a process of evolution. With each individual action, social institutions are spontaneously shaped, reaching such complexities that no mind could comprehend. 

This conception that social structures are formed spontaneously was also reflected in David Hume’s work. He argued for a morality compatible with spontaneous order in which the laws of justice, he explained, are learned through constant interaction and trading with others.

In the same period, Adam Smith laid the foundation for modern market economics. For Smith, if people are permitted to exercise their natural liberty, social order will emerge in a far more complex manner than anything deliberately designed. No legislator can have the knowledge of time and place that individuals employ to coordinate their actions.

Finally, in the 20th century, a more unified Theory of Spontaneous Order was developed by F. A. Hayek. Inspired by Smith and Carl Menger, he continued developing the idea that we lack the knowledge to make predictions and plans, naming it “the knowledge problem.” For Hayek, a free market is the mechanism to coordinate this immensely dispersed knowledge, which would be impossible for one person or institution to know or centralize.

After being witness to WWII authoritarianism, Hayek also extended his theory to law, politics, and the constitutional structure of nations. 

Conclusion 

In sum, the Spontaneous Order theory proposes that order –and societies– emerge from self-​interested actions from decentralized individuals with no particular common plan. 

What is the relationship between spontaneous order and freedom? If everybody is pursuing their own interests, what about the “common good”? 

We invite you to read through our resources and stay tuned for future videos for answers to these questions, and more! 

If you enjoyed this video, don’t forget to like, share, and subscribe to our YouTube channel.