Abstract

Although individuals cannot desist from planning, social processes cannot be commanded and controlled successfully. The shortcomings and disadvantages of holistic planning and the likelihood of plan failure can be explained: Scattered knowledge can be mobilized, innovation and effort can be elicited only where planning does not displace economic freedom and competition. The positive effects of freedom and competition and the negative effects of constraining plans can be demonstrated empirically. But freedom and competition require an institutional framework. There is no need to leave the establishment of this framework only to evolution because evolution does not necessarily lead to efficient solutions. That is why some kinds of planning may have a useful, though modest role to play at the rule-making level. Since planners remain fallible in planning constitutions and institutions, competition and some room for evolution remain desirable at this level, too.