A Practical development strategy: Logic and Reality

The purpose of the paper is to call the attention of general evolutionary theorists to a school of thought in economics that may be of help in their endeavour to discover new solutions to the social problems of our time. I argue that the so‐called Austrian school of economics shares with evolutionary theory an important insight into society. According to this insight, in society an evolutionary process is an ongoing phenomenon, in the course of which new innovations are continuously discovered. The particular outcomes of the discovery process are largely unpredictable because the information needed to make the innovations is dispersed and often tacit. In mainstream neoclassical economics evolution as a social phenomenon is as a rule ignored.