markitect-main/examples/infospace-with-history/output/entities/natural-course-of-economic-development.md

Natural Course of Economic Development

Definition

The spontaneous progression of economic activity from agriculture to manufacturing to foreign trade, determined by natural advantages, resource availability, and market demands rather than political direction. This development sequence emerges from individual self-interest and comparative advantage rather than government planning.

Source Chapter

Book IV, Chapter 8

Context

Smith contrasts the natural development sequence with the artificial priorities imposed by the mercantile system. He argues that attempting to force development in unnatural sequences or directions produces inefficiencies and prevents nations from realising their true economic potential based on their natural advantages.

Economic Domain

General Theory

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