HIST363: Global Perspectives on Industrialization

Georg Friedrich List

Georg Friedrich List (August 6, 1789 – November 30, 1846) was a leading 19th-century German economist who believed in the "National System" type of capitalism. Although greatly influenced by Adam Smith's theories, List also criticized them in several aspects.

List considered that the prosperity of a nation depended not upon the wealth that it had amassed but upon its ability to develop "productive forces" which would create wealth in the future, productive forces not being those involved in creating material products, but rather scientific discoveries, advances in technology, improvements in transportation, the provision of educational facilities, the maintenance of law and order, an efficient public administration, and the introduction of a measure of self-government.

List's theory of "national economics" contrasted the economic behavior of an individual with that of a nation, noting that the individual considers only his own personal interests but the nation is responsible for the needs of the whole. Thus, List's view was that that a nation must first develop its own agricultural and manufacturing processes sufficiently before it is able to fully participate in international free trade.

List recognized the existence and power of nationalism, and that a unified world could not be quickly and harmoniously achieved until individual nations all reached sufficient levels of development to avoid being overwhelmed by the already developed nations. List's work, therefore, has been highly influential among developing nations. In the era of globalization, List's understanding of national economics may prove vital in the successful establishment of a harmonious, peaceful world.

Source: New World Encyclopedia, https://www.newworldencyclopedia.org/entry/Friedrich_List
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