---
entity_slug: natural_order_of_economic_development
entity_type: Principle
vsm_system: S3
type_rationale: The Natural Order of Economic Development represents an abstract theoretical
  law that Smith claims holds universally across societies, describing an invariant
  pattern of capital allocation progression driven by security considerations.
vsm_rationale: This principle primarily operates in the management system by governing
  how capital gets allocated across different sectors (agriculture, manufacturing,
  foreign commerce) based on security and profit considerations.
classified_at: '2026-02-23T11:18:41.933131'
---

# Classification: Natural Order Of Economic Development

## Entity Type

Principle

## VSM System

S3

## Type Rationale

The Natural Order of Economic Development represents an abstract theoretical law that Smith claims holds universally across societies, describing an invariant pattern of capital allocation progression driven by security considerations.

## VSM Rationale

This principle primarily operates in the management system by governing how capital gets allocated across different sectors (agriculture, manufacturing, foreign commerce) based on security and profit considerations.
