Proving Hamlet Wrong

A brilliant economist who travelled and worked all over the globe with the World Bank, Albert Hirschman is probably best known for the Shakespearian motto that became his ethic. Hirschman lived to 'prove Hamlet wrong'.

As he often told it, Hamlet was frozen by doubt. He had the answers – and the rage – to propel him to action but the realisation of his own imperfection consumed him and, ultimately, it was self doubt that defeated him. Yet doubt, argued Hirschman, should never cause us fear or panic. Uncertainty shouldn't create inaction. Instead, Hirschman recommended embracing doubt and uncertainty as the font of innovation and achievement.

He illustrated this with many tales, among them was the study of Karnaphuli Paper Mills, a giant milling operation in Pakistan. Originally constructed close to huge forests of bamboo that were to provide cheap and reliable inputs the mill was threatened when, within weeks of opening, the bamboo forests unexpectedly died.

Instead of closing a multimillion dollar business, the owners built a new supply chain using nearby villagers. They also found a faster growing species of bamboo to replace the lifeless forest and used cheap lumber as a substitute. The Karnaphuli Paper Mill ultimately designed a cheaper, more diversified and reliable supply of materials than the bamboo that initially attracted the investment. If all had gone to plan, the operation would have been weaker than it was by overcoming adversity.

He used the same idea on a grander scale. To get economies to grow he argued that impediments had to be maintained and overcome, not removed.

It's worth remembering Hirschman's counsel; uncertainty should be a source of creativity rather than paralysis.