The American Declaration of Independence demanded (using the idiom of the time) A government of laws and not of men. This concept is absolutely fundamental to a free society. There have to be restrictions on peoples freedom, but these must consist in rules, made in advance and accessible, telling people what they may not do. There must not be people having the power, in their discretion to decide what people may or may not do in particular cases.
Nobody can be perfectly free. We are limited by physical and material constraints, and we are limited by rules, but practical freedom is to be in a position where one knows what the constraints are, and within them, plots ones own course. It is like someone sailing a boat using a chart showing the rocks and shoals, who, taking account of the chart, steers as he chooses.
Written and accessible laws are like the shoals on the chart, but discretionary authority, if exercised consistently and effectively removes the plotting of the course from the individual to the authorities. The individual is no longer in the position of the pilot of a boat plotting his own course; he is like the pilot of an aircraft under the orders of an air traffic controller. The course is plotted by the controller, not the pilot.
In the real world, however, discretionary authority is hardly ever exercised like this. Governments have neither the resources nor the knowledge to run peoples lives in detail however much they may want to. In most real cases, discretionary authority makes erratic and arbitrary raids, more like exceptional bad weather, which can disrupt the best-laid plans.
Discretionary authority is bad for freedom – it takes away peoples sense of autonomy, but it is worse for efficiency. To the extent that it is effective, it puts out of use the ability, initiative and special knowledge of everybody in society except a handful of officials. An effectively centrally planned economy (if such a thing were possible) would use the intelligence of only a tiny minority of the population, whereas a free society uses it all. The more usual, inefficient and sporadic discretionary authority simply increases uncertainty in the world, inhibiting initiative and making people cautious and demotivated. This is probably the most important single factor that explains the superior economic efficiency of free societies.
Source: Michael ODowd is the Chairman of the Free Market Foundation. This article may be reprinted without prior consent but with acknowledgement. Everybody says they want freedom but they dont all mean the same thing in this series of brief articles Mr ODowd explains his concept of a free society. The patrons, council and members of the Foundation do not necessarily agree with the views expressed by the author of the article.
FMF\24 July 2001
