This is a quote from Liberty magazine; March 2005; article The Final Deceit; by Alan Ebenstein; page 30. The article is about Friedrich Hayek and Friedrich Hayek's book The Fatal Conceit.
Hayek came to see whole societal systems - their webs of rules, customs, values, and governments - as competitors with one another. Just as the most efficient individuals and firms come out on top in the market, so the most materially productive society will ultimately prevail. He saw the market as the prototype for intersocietal competition.
I do not know in what books Friedrich Hayek argued this viewpoint, or if Alan Ebenstein agrees with this viewpoint, or if Friedrich Hayek called this competitive federalism, or even if Friedrich Hayek would agree with this quotation.
I agree with this viewpoint.
The lack of competition between governments/societies/communities is the most serious problem in the world today. This issue is more important than any other issue.