Arrested Development: Good Government – Populism versus Institutions

From Martin Wolf today:

“A populist sways the electorate by playing on basic emotions. A populist element is present in most great democratic leaders. But populism is also dangerous: it is a step towards arbitrary government…

The dominant characteristic of the populist is dislike of institutional constraints. This is why the populist is the opposite of the conservative. Conservatives treasure institutions: they embody continuity, ensure predictability and preserve wisdom…

Some of the most interesting recent advances in social science emphasise the role of institutions and permanent organisations in making large-scale co-operation among strangers, which we call “civilisation”, possible. Institutions give people the security and predictability they need if they are to make plans. Friedrich Hayek, a classical liberal, would add that nobody can design a society’s institutions from scratch. That is the “fatal conceit”. Institutions evolve…

Good government, then, is a government of laws – not of men – and of orderly procedure – not of whim. It uses institutions, modifies institutions and, where necessary, creates new institutions. The granting of independence to the Bank of England was a superb example: it modified the structure and function of a good existing institution, thereby creating better, more consistent and more predictable policy.

… Good government is institutionalised and systematic, but also decentralised. It is not populist and chaotic. This is something true conservatives and wise liberals should both understand…”