Implements markitect/llm/ package with concrete LLMAdapter implementations:
- OpenRouterAdapter: HTTP via urllib with retry/backoff on 429/5xx
- ClaudeCodeAdapter: subprocess-based Claude CLI with stdin piping
- Factory pattern: create_adapter("openrouter") or create_adapter("claude-code")
- API key resolution chain: constructor > env var > project-root key file
- 42 unit tests, 2 integration tests (gated on API key / CLI availability)
Also adds the infospace-with-history example with Wealth of Nations VSM
analysis pipeline, templates, schemas, source chapters, and processed
output for chapters 1-2. process_chapters.py now supports --provider
and --model flags for automatic LLM-driven processing.
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
19 KiB
Map Economic Entities to VSM Concepts
You are a systems theorist specializing in Stafford Beer's Viable System Model. Your task is to map extracted economic entities to VSM concepts.
Extracted Entities
--- ENTITY: propensity-to-truck-barter-and-exchange ---
Propensity to Truck, Barter, and Exchange
Definition
An innate or fundamental disposition in human nature to negotiate, trade, and exchange goods with others. Smith identifies this propensity as the ultimate cause of the division of labour, arguing that it is unique to humans and absent in all other animal species. He leaves open whether it is a primary instinct or a consequence of the faculties of reason and speech, but treats it as the foundational mechanism from which specialisation and economic organisation emerge.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
This is the central thesis of the chapter. Smith argues that the division of labour "is not originally the effect of any human wisdom" but rather the "necessary, though very slow and gradual, consequence" of this propensity. The entire chapter serves to establish exchange as the causal origin of specialisation.
Economic Domain
General Theory
Smith's Original Wording
"This division of labour, from which so many advantages are derived, is not originally the effect of any human wisdom, which foresees and intends that general opulence to which it gives occasion. It is the necessary, though very slow and gradual, consequence of a certain propensity in human nature [...] the propensity to truck, barter, and exchange one thing for another."
Modern Interpretation
This concept prefigures the modern economic assumption of rational self-interest as the basis of market behaviour. It also anticipates evolutionary and institutional economics debates about whether exchange is a natural disposition or a culturally constructed institution.
--- ENTITY: self-interest ---
Self-interest
Definition
The motivation of individuals to pursue their own advantage in economic transactions. Smith argues that in civilised society, individuals obtain the co-operation of others not through appeals to benevolence but by engaging their self-love — showing them that it is to their own advantage to provide what is desired. Self-interest is the engine that makes exchange function: each party to a bargain acts from regard to their own benefit.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
Smith introduces self-interest through the celebrated passage about the butcher, brewer, and baker. He contrasts it with benevolence, arguing that we cannot rely on the goodwill of others for our daily needs in a society of many, and that self-interest provides a more reliable and universal basis for economic co-operation.
Economic Domain
General Theory
Smith's Original Wording
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities, but of their advantages."
--- ENTITY: the-bargain ---
The Bargain
Definition
A voluntary bilateral exchange in which each party offers something the other wants. Smith defines the bargain as the fundamental unit of economic interaction: "Give me that which I want, and you shall have this which you want." It is through bargaining that individuals obtain "the far greater part of those good offices which we stand in need of" in civilised society, as opposed to relying on benevolence or coercion.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
The bargain is presented as the practical expression of the propensity to exchange. Smith argues that it is the dominant mode of economic interaction, used even by beggars who exchange charity-received goods for things they actually need.
Economic Domain
Exchange
Smith's Original Wording
"Whoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer."
--- ENTITY: benevolence ---
Benevolence
Definition
The disposition to do good to others out of goodwill rather than self-interest. Smith argues that benevolence is an insufficient basis for economic organisation in a complex society. While a person may secure the friendship of a few through appeals to benevolence, they cannot rely on it to obtain the co-operation of the "great multitudes" they need in civilised life. Even beggars, who depend chiefly on benevolence for their subsistence, conduct most of their actual transactions through exchange.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
Benevolence serves as the foil to self-interest. Smith systematically argues that while benevolence exists, it cannot scale to support the complex interdependencies of a specialised economy, making self-interested exchange the necessary coordinating mechanism.
Economic Domain
General Theory
--- ENTITY: surplus-produce ---
Surplus Produce
Definition
The portion of a worker's output that exceeds their own consumption needs and is therefore available for exchange. Smith argues that the certainty of being able to exchange surplus produce for the products of other workers' labour is what encourages every person to dedicate themselves to a particular occupation. Surplus is thus both the material prerequisite and the incentive for specialisation.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
Introduced in the passage describing the emergence of specialised trades in a tribal society. The armourer, carpenter, smith, and tanner each produce more of their specialty than they can personally consume, and exchange the surplus for other goods, reinforcing their commitment to specialisation.
Economic Domain
Production
Smith's Original Wording
"And thus the certainty of being able to exchange all that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men's labour as he may have occasion for, encourages every man to apply himself to a particular occupation."
--- ENTITY: difference-of-talents ---
Difference of Talents
Definition
The observable variation in skills, aptitudes, and abilities among individuals in different occupations. Smith makes the striking argument that this difference is largely the effect rather than the cause of the division of labour: people are born with roughly equal abilities, and it is their different occupations, shaped by habit, custom, and education, that create the apparent differences. He contrasts humans with dogs, where natural breed differences are far greater but cannot be made useful because animals lack the capacity for exchange.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
This argument occupies the final portion of the chapter. Smith uses it to reinforce his claim that exchange, not innate difference, is the driver of specialisation. The philosopher and the street porter were "very much alike" until different employments shaped them differently.
Economic Domain
General Theory
Smith's Original Wording
"The difference of natural talents in different men, is, in reality, much less than we are aware of; and the very different genius which appears to distinguish men of different professions, when grown up to maturity, is not upon many occasions so much the cause, as the effect of the division of labour."
--- ENTITY: common-stock ---
Common Stock
Definition
The aggregate pool of goods and services created when individuals bring their diverse specialised products together through exchange. Smith argues that among humans, unlike animals, different talents are made useful to one another because their products can be "brought, as it were, into a common stock, where every man may purchase whatever part of the produce of other men's talents he has occasion for." This common stock is the emergent result of widespread exchange among specialised producers.
Source Chapter
Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour"
Context
Appears in the chapter's concluding argument comparing humans and animals. While a mastiff cannot benefit from a greyhound's speed due to lack of exchange, humans can pool their different abilities through trade, making all talents contribute to the general welfare.
Economic Domain
Exchange
VSM Framework Reference
id: vsm-framework name: vsm_framework artifact_type: content description: Stafford Beer's Viable System Model reference for economic analysis version: 1.0.0
Stafford Beer's Viable System Model (VSM)
The Viable System Model (VSM) is a model of the organisational structure of any autonomous system capable of producing itself. It was created by management cybernetician Stafford Beer in his books Brain of the Firm (1972) and The Heart of Enterprise (1979).
Core Principle: Viability
A viable system is any system organised in such a way as to meet the demands of surviving in a changing environment. One of the prime features of systems that survive is that they are adaptable. The VSM expresses a model for a viable system, which is an abstracted cybernetic description applicable to any organisation that is a going concern.
The Five Systems
System 1 (S1) — Operations
The primary activities that produce the organisation's purpose. These are the operational units that directly create value. Each operational element is itself a viable system (the principle of recursion).
In economic terms: Productive enterprises, factories, farms, workshops, individual labourers performing specialised tasks, merchant operations.
Key properties: Autonomy within constraints, self-organisation, direct engagement with the environment.
System 2 (S2) — Coordination
The information channels and bodies that allow the primary activities in System 1 to communicate with each other and that allow System 3 to monitor and coordinate activities. System 2 dampens oscillations and resolves conflicts between operational units.
In economic terms: Market price mechanisms, trade customs, standard weights and measures, commercial law, banking clearinghouses, trade guilds.
Key properties: Anti-oscillatory, dampening, scheduling, conflict resolution, standardisation.
System 3 (S3) — Control / Operational Management
The structures and controls that establish the rules, resources, rights, and responsibilities of System 1 and provide an interface between Systems 1 and Systems 4/5. System 3 represents the day-to-day control of the organisation. It optimises the internal environment.
In economic terms: Government regulation of trade, taxation policy, labour laws, enforcement of contracts, the "invisible hand" as emergent internal regulation, guilds and corporations governing members.
Key properties: Internal regulation, resource allocation, accountability, synergy extraction, performance management.
System 3* (S3*) — Audit / Monitoring
The audit and monitoring channel that allows System 3 to verify information coming from System 1 through channels other than those provided by System 2. System 3* provides sporadic, direct access to operational reality.
In economic terms: Market inspections, quality checks, auditing of accounts, surprise investigations into trade practices, verification of weights and measures.
Key properties: Sporadic direct investigation, reality checking, bypassing normal reporting channels.
System 4 (S4) — Intelligence / Adaptation
The bodies and processes that look outward to the environment to monitor how the organisation needs to adapt to remain viable. System 4 captures all relevant information about the outside-and-then environment. It is responsible for strategic responses.
In economic terms: Foreign intelligence about trade opportunities, market research, new technology adoption, colonial exploration and trade route development, understanding of foreign economic systems.
Key properties: Environmental scanning, future orientation, strategic planning, modelling, research and development.
System 5 (S5) — Policy / Identity
The policy-making body that balances demands from Systems 3 and 4 and defines the identity, values, and purpose of the organisation. System 5 provides closure to the whole system and represents its supreme authority.
In economic terms: Sovereign authority, constitutional principles governing economic policy, national economic identity, the philosophical foundations of economic systems (mercantilism vs. free trade), the overarching purpose of the commonwealth.
Key properties: Identity, ethos, supreme command, policy closure, balancing internal and external perspectives.
Key Concepts
Recursion
Every viable system contains and is contained in a viable system. The same five-system structure recurs at every level of organisation. A workshop is a viable system within a factory, which is a viable system within an industry, which is a viable system within a national economy.
Variety
A measure of the number of possible states of a system. The Law of Requisite Variety (Ashby's Law) states that only variety can absorb variety. A controller must have at least as much variety as the system it controls.
Requisite Variety
The principle that for effective regulation, the variety of the regulator must match the variety of the system being regulated. This is achieved through variety attenuation (reducing the variety coming up from operations) and variety amplification (increasing the variety of management's responses).
Attenuation and Amplification
Variety engineering mechanisms. Attenuation reduces variety (e.g., reporting summaries, statistical aggregation, standardisation). Amplification increases variety (e.g., delegation, empowerment, decentralisation).
Algedonic Signals
Emergency signals that bypass the normal management hierarchy to alert higher systems of critical situations requiring immediate attention. Named from the Greek words for pain (algos) and pleasure (hedone).
In economic terms: Market panics, famine signals, sudden price collapses, trade embargoes, economic crises that demand immediate sovereign intervention.
Autonomy
The degree of freedom granted to operational units (System 1) to self-organise within constraints set by System 3. Beer argued that maximum autonomy consistent with systemic cohesion yields maximum viability.
Viability
The capacity of a system to maintain a separate existence and survive in a changing environment. A viable system continuously adapts while maintaining its identity.
Mapping Guidelines
id: mapping-rules name: mapping_rules artifact_type: content description: Guidelines for mapping economic entities to VSM concepts version: 1.0.0
VSM Mapping Rules
Mapping Principles
-
Ground in Beer's definitions. Every mapping rationale must reference the specific VSM system function, not just a superficial resemblance.
-
Prefer structural over metaphorical mappings. A mapping is strong when the economic entity performs the same functional role in Smith's economic system as the VSM component performs in an organisation.
-
Allow multiple mappings. A single economic entity may map to multiple VSM systems. For example, "the sovereign" may map to both S3 (regulation) and S5 (policy). Create separate mapping documents for each relationship.
-
Respect recursion. Consider at which level of recursion the mapping applies. The division of labour within a single workshop (S1-level) differs from the division of labour across an entire national economy (higher recursion level).
Mapping Strength Criteria
Strong
- The entity directly performs the function of the VSM system.
- The mapping would be recognisable to a VSM practitioner without explanation.
- Example: "market price mechanism" → S2 (Coordination) — prices coordinate supply and demand between producers.
Moderate
- The entity partially performs the function or performs it in a limited context.
- The mapping requires some argument but is defensible.
- Example: "merchant" → S4 (Intelligence) — merchants gather information about foreign markets, but this is not their primary function.
Weak
- The mapping is speculative or metaphorical rather than structural.
- The connection exists but requires significant interpretive work.
- Example: "moral sentiments" → S5 (Policy) — broad ethical framework shapes economic behaviour, but the connection is indirect.
What NOT to Map
- Do not force mappings where none exist. It is valid for an entity to have no clear VSM mapping — flag it with "Mapping Strength: Weak" and explain the difficulty.
- Do not map purely descriptive/historical content that lacks functional significance.
VSM System Checklist
When mapping, consider each system:
| System | Question to Ask |
|---|---|
| S1 | Does this entity directly produce value or output? |
| S2 | Does this entity coordinate between operational units? |
| S3 | Does this entity regulate internal operations? |
| S3* | Does this entity provide audit or verification? |
| S4 | Does this entity scan the environment or plan for the future? |
| S5 | Does this entity define identity, policy, or purpose? |
Also consider the key concepts:
- Recursion: At what level does this entity operate?
- Variety: Does this entity manage variety (attenuate or amplify)?
- Algedonic signals: Does this entity serve as an emergency signal?
- Autonomy: Does this entity relate to operational autonomy?
Instructions
- Review each extracted economic entity carefully.
- For each entity, determine which VSM system(s) it most closely relates to.
- Produce a mapping document for each entity-VSM relationship following the VSM Mapping Schema v1.0.
- Each mapping document must include:
- An H1 heading in the format "Entity Name -> VSM Concept Name"
- An Economic Entity Reference section
- A VSM Concept Reference section
- A Mapping Rationale section (minimum 30 words) grounded in Beer's definitions
- A Mapping Strength section rated as Strong, Moderate, or Weak
- Where an entity maps to multiple VSM systems (recursion), create separate mapping documents for each relationship.
- Flag entities that don't clearly map to any VSM concept with a "Mapping Strength: Weak" and note the difficulty in the rationale.
Output Format
Output each mapping as a separate markdown document, delimited by
--- MAPPING: <entity-name>-to-<vsm-concept> --- markers.