The Nature of Imagined Orders

Key Economic Insight

Imagined orders, despite existing only in the collective human mind, are crucial for large-scale cooperation and are sustained by three main factors. First, they are embedded in the material world. For instance, modern Western individualism, which values individual worth, is reflected in architectural designs like private rooms for children, reinforcing the idea of self-worth from within. Conversely, medieval castles with large communal halls reflected a hierarchical society where worth was determined by social standing and external perception.

Second, imagined orders shape human desires. Most deeply cherished desires, even seemingly personal ones like taking a holiday abroad, are programmed by dominant myths such as romantic consumerism. Romanticism encourages diverse experiences, while consumerism promotes happiness through consumption. The combination fuels industries like tourism, selling 'experiences' (e.g., Paris as an experience) that are not independent desires but ardent beliefs in these myths. This is analogous to ancient Egyptians desiring sumptuous tombs instead of shopping in Babylon.

Third, imagined orders are inter-subjective, meaning they exist within the shared consciousness and communication networks of many individuals. Unlike objective phenomena (like radioactivity) or subjective beliefs (like an imaginary friend), an inter-subjective reality (like a company such as Peugeot, money, or nations) persists even if one individual stops believing. To change an imagined order, the consciousness of millions must be simultaneously altered, a task that requires believing in and organizing around an alternative imagined order, demonstrating that 'there is no way out of the imagined order,' only into a different one.