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I suggest that the search for Adam Smith’s theodicy is likely to be in vain. The paper begins with a brief history of approaches to evil, emphasizing the context in which they arose, and the questions authors were addressing. Approaches most relevant to Adam Smith include those of Augustine and Calvin, and the early modern theodicies of Leibniz, Samuel Clarke and William King, as well as the attacks on them by Bayle and Voltaire. Scottish Enlightenment writers were not terribly interested in theodicy, though Hutcheson and Kames did devote space to their versions of problems of evil. David Hume’s Dialogues on Natural Religion are often taken to be classic statement of the problem of theodicy and argument against religious belief, but his concern was to demolish rationalistic theodicies rather than religious belief or practice. The paper then turns to Smith’s writings, considering similarities and differences to these approaches to evil. Smith emphasizes the wisdom and beneficence of God, and that evils we observe are part of a larger providential plan. He makes no attempt to justify the God in the face of evil, and in this respect Smith shares more with Augustine and Calvin than he does with the early modern theodicists. Smith’s approach to evil is simple and ameliorative. Smith’s approach contrasts with early nineteenth century English political economists, from Malthus onwards, for whom theodicy was important. Whatever view we take of the theodicists project of justifying an all-powerful and good God in the face of evil may, we still struggle to make sense of economic suffering and evil.

Over the past century explicit discussion of theology has all but disappeared from economic discourse, while economics has been largely ignored by theologians. This paper argues that this separation is neither desirable nor possible, and calls for a theological economics. The argument is in two parts – a primary argument for the necessity and primacy of theology coming from the nature of orthodox Christian theology, and a secondary argument based on points of contact between economics and theology. Acceptance of the argument does not lead to a separatist “Christian” economics, but rather to discussion of theology implicit in contemporary economics and better relations between the two disciplines. Some existing work along these lines is briefly surveyed.

Adam Smith sees religion both as having a useful and a dangerous role. People create gods to explain what they do not understand and appease their desire of justice when human justice is perceived to fail. These are socially useful functions of religion. But when religion is used as a political tool and is used for state capture purposes, then it becomes a dangerous and destructive force in society.

In the wake of public service liberalisation in many OECD countries, economic interventions into the purpose and implementation of social policies have gained a lot of interest in recent years. The prime aim of this paper is to describe the nature of these interventions. The paper examines the reasons for pursuing elusive efficiency objectives in the conduct of public policy, rationales for purchaser‐provider splits, evaluation of cost‐quality relationships, service costing and pricing, and the influence of “external” economic variables.

The paper breaks the analysis of public policy down to three layers of economic interventions: macroeconomics (allocative efficiency, intervention rationales and macroeconomic environment), mesoeconomics (economics of delivery in “social industries”) and microeconomics (agent behaviour, contracting, pricing and evaluation). Each level of economic intervention is illustrated with examples, mainly taken from Australian public policy and mainstream social economic research.

Some of the most critical questions in policy implementation (outsourcing, pricing, contracting and agency problems) can be traced back to economic reforms. Experiments with new modes of service delivery are driven by a changing economic context, yet the efficiency gains from these innovative approaches may come at the expense of service quality.

Changing macro‐, meso‐ and microeconomic variables profoundly alter the parameters of service delivery. Designers and managers of service delivery systems need to be aware of – and skilled in – the practical application of economic principles, concepts and methods.

Except for the health sector, there is a lack of consistent research on the interrelationships between the standard economics toolkit and the delivery of public services. Yet the two are profoundly intertwined. The paper helps distinguish these relationships by putting together elements of conceptual analysis and fieldwork.

This book is important for demonstrating a significant lacuna in our current view of the history of economic thought. It reflects many years of research, and of struggle with established views, on the part of the editor and principal author, S. M. Ghazanfar, who is to be congratulated for having thus carried his program to fruition. He has been ably aided by A. A. Islahi and Hamid Hosseini in this venture. I am reminded of the introduction to Maria Rosa Menocal's (1987) book on The Arabic role in medieval literary history where she poses the question of “courtly love” and thus, indirectly, of chivalry, for Medieval Europe. What is the origin of the troubadour, the bearer of songs of courtly love? A simple solution presents itself in the Arab word “tarab,” or song, from which troubadour seems to follow naturally. Nonetheless, the suggestion was dismissed out of hand because troubadour “could not” have arisen from a society which oppresses women! We should be more concerned with the facts than with our preconceptions about societies.