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5 - Integrating the Informal and Formal in Smith’s Theory

Published online by Cambridge University Press:  27 September 2021

Robin Paul Malloy
Affiliation:
Syracuse University, New York
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Summary

Adam Smith’s theory of jurisprudence accounted for informal as well as formal elements of social organization. The informal elements have been with humankind for as long as can be remembered – since the earliest stage of hunting and gathering. Informal arrangements arose out of norms and cultural practices responsive to three underlying human characteristics. These characteristics included: the natural pursuit of self-interest; the ability to sympathize with others; and the ability to be self-reflective in making judgments concerning one’s own behavior and the behavior of others. The formal elements evolved over time as civic institutions. They evolved in response to the rising complexity of human cooperation as society progressed through Smith’s four stages. Formal institutions included those of economics, politics, and law.

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Law and the Invisible Hand
A Theory of Adam Smith's Jurisprudence
, pp. 59 - 64
Publisher: Cambridge University Press
Print publication year: 2021

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