The subjective and objective conditions of the circumstances of justice

Rawls’ specification of the priority of basic liberties applies only to societies at a certain stage of economic and social development, namely moderate scarcity of resources amid reasonable pluralism. Before that condition is reached, institutional arrangements that give greater weight to economic growth are permitted. Contemporary theory and evidence, especially from new institutional economics, suggests that these conditions are only likely to be approached through the establishment of institutions based on the protection of private property and voluntary contracts that constitute commercial societies. Alternative state-led approaches to economic development are less likely to succeed and can only work through greater coercion and fewer protections for other liberties.