Lindblom - The Market System - Afghan Journalists' Committee

Alternative Market Systems 259of the state. It is by no means its only instrument, for oftenthe state proceeds through outright commands and prohibitions.But it is the nearest thing to an all-purpose instrument.The state’s use of it is routine and commonplace.Does the state intend to increase the provision of medicalcare? Then lower its price. Stimulate research? Then providefunds for it. Clean the air? Then put a charge on industrial-wasteemissions. Reduce ethnic conflict? Then curbethnic discrimination in hiring. In short, the common rulefor state administration is: use the market system.Many of us have been on the wrong track in identifyingthe market system with individualism, as though it couldnot serve collective purposes or could do so only exceptionallyand badly. Clearly the state pursues a great variety ofcollective purposes. It does so—usually, typically—withcontrols made possible by the existence of a market system.The future of the market system is not bound up exclusivelywith individualism but with collective ventures aswell. Understanding that is a prerequisite to making a clearheadedchoice.I think it worth while to walk through an explanation ofexactly why and how the market system becomes the majoradministrative instrument of the state because, althougheveryone knows, most of us do not know that we know.How might a government induce its citizens to do asthey or their rulers believe is necessary? One answer is thatit prohibits by command, forbidding undesired behavior,like excessive highway speed or arson. But how does it obtainpositive performances from its citizens—how, for example,to get laborers to build highways? For positive performance,command is used only in limited circumstances,as in military conscription. Even authoritarian governmentscannot effectively command more than a few of the