The Undercover Economist Tim Harford’s latest book Adapt lucidly explains the virtues of a free market economy, which allows a wide range of businesses to try their luck, with only the fittest surviving, meaning the economy adapts in a similar way to populations subject to Darwinian evolution.

While adaptations to better business models through the Darwinian effects of competition can occur in the private sector, adaptations don’t necessarily occur in the public sector. Bad projects can continue in the public sector, unlike in the private sector where commercial realities quickly become apparent. Mr Harford notes the sorry history of nation-building government projects which aren’t rigorously assessed beforehand because decision makers are convinced of the merits of the projects and aren’t open to opposing views.

It’s a pity this book didn’t come out a few years earlier and end up on ex-PM Kevin Rudd’s reading pile. The National Broadband Network, for example, is possibly the type of grand scheme that Mr Harford warns us about.

Highly recommended.