Biweekly Symposium No. 537: F.A. Hayek: The “Knowledge Problem” and Economic Order

Lecturer: Prof. Viktor J. Vanberg

Host: ZHANG Shuguang, Chairman, Unirule Academic Committee

Commentators: LIU Yejin, XU Jianming, LI Song, ZHU Junsheng

Professor Viktor J. Vanberg started by introducing Hayek’s influence on his research. He thought Hayek’s effort to illustrate the fault of central planning was significant. As he introduced Hayek’s ideas, he stressed the individual and the social dimension, concerning the individual ability to obtain knowledge. A society concerns many existing dimensions and levels, different groups, and differentiated abilities to solve problems. And the rational choice theory assumes that individuals are able to handle all possible situations and choose the best action plans, which is totally false. It’s impossible to choose the optimal choice based on the knowledge and information individuals hold.

Professor Vanberg thought the way knowledge communicates in the society constitutes the basis of Hayek’s social theory. Hayek also emphasised the distinction between two kinds of orders, one was spontaneous order, or the self formed order, and the other was constitutional design, or the organisational order. The fundamental thing about spontaneous order as the organisation principle lies in the achievable purpose of people. And if the individual knowledge was utilised by central planning instead of by individual choices, it is impossible to be of any good.