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無為 – On the Eurasian Roots of the Laissez-Faire Doctrine

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  • Gerlach Christian

    (GAM Investments, Zürich, Switzerland)

Abstract

This paper focuses on the diffusion of 無為/ wu-wei (an ancient Chinese concept of political economy) throughout Europe, between 1648 and 1848. It argues that at the core of this diffusion process were three significant developments; first, the importation and active transmission of wu-wei by the Low Countries during the seventeenth century. It is revealed that the details of Chinese expertise entered Europe via the textual diffusion of Jesuit texts and the visual diffusion of millions of so-called minben-images during the ceramic boom of the seventeenth and eighteenth centuries. Thus, the hypothesis is advanced that the diffusion of wu-wei, co-evolved with the inner-European laissez-faire principle, the Libaniusian model.In the second part, it is shown that the intellectual foundation of Europe’s first economic school, Physiocracy, is a direct replica of the imported Chinese economic, agrarian craftsmanship of wu-wei; subsequently, it is denied that the indigenous European Libaniusian ideology can be considered the intellectual master-model of Physiocracy and his founder Quesnay.Finally, we argue that Switzerland can be identified as the first European paradigm state of wu-wei. The crystallization process of wu-wei inside Europe ultimately ended with the economic-political reorganization of the newly formed Eidgenossenschaft in 1848. The Swiss succeeded in institutionally transforming traditional Chinese agrarian wu-wei into the modern version of European “commercial wu-wei”. In due course, this alpine paradigm enabled the endogenous Libaniusian model to verify and reflect upon its theory of commercial society. Additionally, this third focus also demonstrates that the later development of Europe’s laissez-faire doctrine has to be seen as a Eurasian co-production – without importing China’s wu-wei, Europe’s pro-commercial ideology might never have matured.

Suggested Citation

  • Gerlach Christian, 2019. "無為 – On the Eurasian Roots of the Laissez-Faire Doctrine," Man and the Economy, De Gruyter, vol. 6(2), pages 1-16, December.
  • Handle: RePEc:bpj:maneco:v:6:y:2019:i:2:p:16:n:3
    DOI: 10.1515/me-2019-0009
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    References listed on IDEAS

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    1. H. Spencer Banzhaf, 2000. "Productive Nature and the Net Product: Quesnay's Economies Animal and Political," History of Political Economy, Duke University Press, vol. 32(3), pages 517-551, Fall.
    2. Ken McCormick, 1999. "The Tao of Laissez-Faire," Eastern Economic Journal, Eastern Economic Association, vol. 25(3), pages 331-341, Summer.
    3. Deng, Kent G, 2003. "Development and Its Deadlock in Imperial China, 221 B.C.-1840 A.D," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 479-522, January.
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