942 B
942 B
Natural Order Inversion
Definition
The historical departure from the natural sequence of economic development observed in European states, where foreign commerce and manufacturing preceded and stimulated agricultural improvement rather than following it. This inversion resulted from artificial institutional constraints and historical circumstances that forced societies into unnatural development patterns.
Source Chapter
Book III, Chapter 1
Context
Smith identifies this inversion as a key feature of European economic development that departed from natural patterns, explaining how foreign commerce served as the catalyst for manufacturing development and subsequent agricultural improvement in ways that reversed the logical sequence of economic progress.
Economic Domain
General Theory