Final answer:
The statement is False. Daoism posits that as civilization advances and human institutions are perfected, they often lead humanity away from the Dao, rather than closer to it, due to the development of artificial virtues and increased complexity.
Step-by-step explanation:
The statement that from the perspective of the Daoist tradition, humanity is evolving ever closer toward the Dao as civilization and the perfection of human institutions advance is False. Daoism suggests that the advancement of civilization and institutions can lead to a departure from the Dao, the underlying natural force. The Dao de Jing notes a distinct warning against such developments, indicating that with the rise of social constructs such as benevolence (ren) and righteousness (yi), humanity moves away from the natural way, the Dao, and becomes mired in artificial virtues and morals.
The Daoist view is that the Dao is shadowy and obscure, and that defining it in concrete terms further obscures its true nature. The Daoist path involves embracing simplicity, humility, and the natural way of things, rather than pursuing the perfection of human-made systems. Contrary to the advancement of institutions, Daoists believe in aligning with the Dao through spontaneity and naturalness, indicating a tendency to draw away from societal norms and artificial constructs as a means to stay true to the natural order.
According to Daoist thought, as society progresses and human institutions become more complex, the essential Dao becomes occluded by these superficial layers. Thus, the evolution of civilization does not necessarily bring humanity closer to the Dao. Instead, it often leads to a loss of connection with the Dao as humanity gets entangled in the trappings of social structures and virtues advocated by Confucianism, which are viewed critically by Daoists.