Book review: The Company of Strangers
“The Company of Strangers” (2004, Princeton University Press) In a very rich and lively book, Paul Seabright, an economist from the University of Toulouse, explains how human beings have evolved from an ordinary animal species to a highly organised society through what he calls “The Great Experiment”. This experiment consists in the building of social and economic institutions and Seabright shows that our subsequent evolution has little to do with genetical or biological evolution. These institutions – mostly embedded in the modern state via some core principles: army, law enforcement, property rights,… - have made it possible the development of markets by nurturing trust and allowing specialisation. Trust and specialisation are linked to each other because one cannot specialize in what she does best if she doesn’t trust that others will provide her with everything else she needs to live. Specialisation has grown to such a high level that the manufacturing and delivery of a new shi...