State, market, and international order

Distinctions in the liberal tradition based on Adam Smith and Friedrich Hayek

Abstract

Based on a comparative analysis of the works of Friedrich Hayek and Adam Smith, this paper shows that, within the classical liberal tradition, there were different conceptions of sovereign state’s functions in maintaining the international order.  Although both theories carry many similar aspects, such as individual freedom’s advocation, their perspectives on the state’s role in international relations have strong contrasts, which are often ignored in contemporary analyses. While Smith comprehends state sovereignty, especially military sovereignty, as fundamental to maintaining stability, freedom, and security within a political body; Hayek considers state’s military sovereignty to be the main source of instability in the international sphere and a threat to freedom. In short, this article contributes to a deeper understanding of the different approaches within classical liberalism, drawing attention to its plurality regarding the international order.