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This paper explores the relevance of Adam Smith’s invisible hand and the remainder of his legacy for public management. The paper’s central claim is that, by approaching Adam Smith and his legacy, public managers can assist themselves to do what they should do - examine their latent assumptions. The first of three challenges in approaching Adam Smith’s ideas is to get Smith right, because he has been widely misunderstood. The second is to question Smith’s account of conceptual space; it is desirable to go beyond him. The third challenge is to explore in specific terms the potential for public management of an understanding of Smith and his legacy

A close reading of Adam Smith’s works, “An Inquiry into the Nature and Causes of Wealth of Nations” and “The Theory of Moral Sentiments,” indicates that he would not support the advocacy of free markets wholeheartedly. His view on market systems, although “free,” implies strong institutions and regulations. Adam Smith would have been particularly concerned with the fact that the large multinationals are as much political actors as they are economic actors. He would have argued that there may be ‘moral‘ limits to globalization. In his view, the general rules of morality are (in modern parlance) ‘socially embedded.’ Thus, sympathy and fellow‐feeling mostly operate at ‘close quarters’ and, in particular, they may not be effective at a transnational level.

A collection of essays by a social economist seeking to balance economics as a science of means with the values deemed necessary to man′s finding the good life and society enduring as a civilized instrumentality. Looks for authority to great men of the past and to today′s moral philosopher: man is an ethical animal. The 13 essays are: 1. Evolutionary Economics: The End of It All? which challenges the view that Darwinism destroyed belief in a universe of purpose and design; 2. Schmoller′s Political Economy: Its Psychic, Moral and Legal Foundations, which centres on the belief that time‐honoured ethical values prevail in an economy formed by ties of common sentiment, ideas, customs and laws; 3. Adam Smith by Gustav von Schmoller – Schmoller rejects Smith′s natural law and sees him as simply spreading the message of Calvinism; 4. Pierre‐Joseph Proudhon, Socialist – Karl Marx, Communist: A Comparison; 5. Marxism and the Instauration of Man, which raises the question for Marx: is the flowering of the new man in Communist society the ultimate end to the dialectical movement of history?; 6. Ethical Progress and Economic Growth in Western Civilization; 7. Ethical Principles in American Society: An Appraisal; 8. The Ugent Need for a Consensus on Moral Values, which focuses on the real dangers inherent in there being no consensus on moral values; 9. Human Resources and the Good Society – man is not to be treated as an economic resource; man′s moral and material wellbeing is the goal; 10. The Social Economist on the Modern Dilemma: Ethical Dwarfs and Nuclear Giants, which argues that it is imperative to distinguish good from evil and to act accordingly: existentialism, situation ethics and evolutionary ethics savour of nihilism; 11. Ethical Principles: The Economist′s Quandary, which is the difficulty of balancing the claims of disinterested science and of the urge to better the human condition; 12. The Role of Government in the Advancement of Cultural Values, which discusses censorship and the funding of art against the background of the US Helms Amendment; 13. Man at the Crossroads draws earlier themes together; the author makes the case for rejecting determinism and the “operant conditioning” of the Skinner school in favour of the moral progress of autonomous man through adherence to traditional ethical values.

This paper encourages an examination of the conceptual space which Adam Smith’s work and legacy present and which conditions thinking about governmental and societal organization and management. The paper, situating Smith in his eighteenth‐century context, distinguishes between the historical Smith and his legacy. It analyzes the invisible hand doctrine, showing that the doctrine should be understood in the context of Smith’s other writings and arguing that Smith himself would reject the version which many suppose to constitute the Smithian legacy. It emphasizes the importance of the Smithian legacy, and it argues that Smith’s readers should go beyond Smith by recognizing the socially constituted character of the conceptual space which Smith’s writings and legacy have provided to contemporary society. A central implication is that, by exploring Adam Smith and his legacy, governmental and other thinkers and managers can do what they should do ‐ examine their latent assumptions.

The purpose of this paper is to explore the origin of economics as a separate science.

A very comprehensive approach is presented for determining the origin of economics as a science. Three kinds of inter‐related issues are discussed: how to interpret and evaluate earlier, particularly ancient, writings, the specification of the requirements for declaring economics as a science and the definition, scope and methodology of economics.

Application of the most stringent requirements for declaring economics as a separate science to Kautilya's Arthashastra validated A.K. Sen's claim that it is the first book on economics.

According to Kautilya, economics is a separate science but not independent of other disciplines and particularly of ethics. Whereas, most of the current research ignores this inter‐dependence and consequently does not fully capture reality.

It implies that the inter‐dependence between economics and other disciplines should be encouraged and vigorously explored.

It validates Redman's assertion, “The history of economics as a science is, in my view, still waiting to be properly written”.

In the Western world the voices calling for a secular society have grown ever louder over the last three centuries. This paper seeks to return to one of the founders of modernity for guidance. Adam Smith advocated globalization on economic and moral grounds.Design/methodology/approach – A discussion focusing on those calling for a secular society and, in addition to these normative advocates, various social scientists have propounded the “secularization thesis”; after analysing history from a purportedly positive view, they have argued that “modernization” leads to a secular society. Recently globalization has been seen as another cause of secularization. At the same time, the revival of various religions has cast doubt on these claims.Findings – Smith did not see secularization as an inevitable consequence of globalization. Further, despite his awareness of the arguments of the advocates of secular society (and contrary to some commentators like Minowitz), he rejected their advice. For him, a secular community was neither a necessary nor a desirable consequence of globalization.Originality/value – Provides a viewpoint on some of Adam Smith's thoughts and ideas.

The purpose of this paper is to present the methods of teaching about the global financial crisis (GFC) from a social economic perspective. Using primary texts from the history of economic thought, the moral underpinnings for collective social action are examined in times of economic depression. The deregulation of financial markets raises two questions: to what extent is deregulation the result of a misunderstanding about human nature and the behavioral lessons of social economics; and to what extend does deregulation ignore the moral lessons of Adam Smith’s invisible hand?

By reading sources including Mandeville, Smith, Keynes, Hayek and others, students form conclusions about the strengths and weaknesses of government interventions, both to fix, and to prevent, major recessions and depressions.

Two fallacies relating to financial market deregulation are that “greed is good” and that rational actors in the market will self-regulate leading to widespread prosperity. These moral beliefs supported financial liberalization, and ultimately contributed to financial institutions taking on enormous risks and losses that are ultimately socialized.

This paper innovatively uses readings from the history of economic thought to spark pedagogical discussions and debates about human nature and policymaking relevant to the GFC.

Sages and seers in ancient India specified dharma, artha, kama and moksha as the four ends of a moral and productive life and emphasised the attainment of a proper balance between the spiritual health and the material health. However, most of their intellectual energy was directed towards the attainment of moksha, the salvation from birth‐death‐rebirth cycle. Kautilya, on the other hand considered poverty as a living death and concentrated on devising economic policies to achieve salvation from poverty but without compromising with ethical values unless survival of the state was threatened. Kautilya's Arthashastra is unique in emphasising the imperative of economic growth and welfare of all. According to him, if there is no dharma, there is no society. He believed that ethical values pave the way to heaven as well as to prosperity on the earth, that is, have an intrinsic value as well as an instrumental value. He referred the reader to the Vedas and Philosophy for learning moral theory, which sheds light on the distinction between good and bad and moral and immoral actions. He extended the conceptual framework to deal with conflict of interest situations arising from the emerging capitalism. He dedicated his work to Om (symbol of spirituality, God) and Brihaspati and Sukra (political thinkers) implying, perhaps, that his goal was to integrate ethics and economics. It is argued that the level of integration between economics and ethics is significantly higher in Kautilya's Arthashastra than that in Adam Smith's Wealth of Nations or for that matter in the writings of Plato and Aristotle.