The chapter starts off with a quote from Adam Smith:
The man of system . . . seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chessboard. He does not consider that the pieces upon the chessboard have no other principle of motion besides that which the hand impresses upon them; but that, in the great chessboard of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might choose to impress upon it. If those two principles coincide and act in the same direction the game of human society will go on easily and harmoniously, and is very likely to be happy and successful, If they are opposite or different, the game will go on miserably and the society must be at all times in the highest degree of disorder.--Adam Smith, , 17591759!!!
The law is something that has to be discovered rather than invented, De Soto quotes various philosophers and economists to this effect. It's an idea that's been around for thousands of years, but it's still wonderfully refreshing. In it, we see the difference between the Greek cosmos (the way living things naturally order themselves) and taxis (the military or academic way of organising things). Communities develop working relationships which the law is supposed to codify; it's not supposed to happen the other way round.Hayek was no friend to Totalitarian Rationalist Democracry and all its mistakes and we on our side of the political spectrum need to understand how that reservation applies to some on our side as well.