Foster's Theory of institutional Adjustment (Essay Sample)

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Foster’s Theory of Institutional Adjustment
The Foster’s theory can be used in the Dewey an Instrumental Logic approach to Policy deliberation which follows a seven point approach in an iterative, cumulative, evolutionary, and interactive manner. This paper set out to discuss how the Foster’s Theory of Institutional adjustment can be applied at the point where a decision is to be on various tentative solutions to a problematic situation.
The first part is the inquiry process which is set in motion by a problematic situation, for which a solution is not readily available, thus is "felt." The situation here referring to a qualitative, personal and unique whole or the part of which are not yet analytically separable from each other. Secondly there is recognition of the constituent parts of the situation or problem. In this step the variables to be included in the model, these being the non-economic, economic, and the historical timeframe; are determined. The third step involves development or setting up of alternative hypothetical solutions to the problem, if obtainable and the society in question or of interest or the participating people must have a say in the proposed solution(s).
Fourth we have the Deweyan "dramatic rehearsal" of the anticipated consequences of applying a hypothetical solution. At this stage we might use simulation modeling via institutional dynamics, if it’s appropriate, to rehearse and document the consequences of the application of alternate hypothetical solutions or use J.Fagg Foster theory of institutional Adjustment to make the decision. John Foster opined that the economy is a complex adaptive system and by necessity, must be treated as such by economists. The making of choices involves the application of some criterion of judgment where we can distinguish at least three positive identifications of a valid criterion of judgment. Firstly, the basis for judging must take account of the reality and inevitability of change. This implies a criterion which does not specify any stable, continuous pattern of institutions, but one which recognizes that a continuously expanding technology makes institutional change inevitable.  The process of change, must be motivated by the enlarging area of human activity in which scientific explanation occurs, must itself be the reference point for a valid criterion of judgment.
Secondly, a valid criterion must provide the oppo...