LIBERALISM AND SOCIAL DEMOCRACY:Neoliberalism

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International Relations-PSC 201

LESSON 34

LIBERALISM AND SOCIAL DEMOCRACY

Defining Liberalism

Liberalism clusters several historical and present-day ideologies claiming that defense of individual liberty is

the most basic purpose of government.

Since WW II, liberalism and its many offshoots have become prominent schools of thought in the west and

in increasingly large sphere of economies and societies influenced by them.

Liberalism typically favors the right to dissent from orthodox tenets or established authorities in political or

religious matters. In this respect, it is sometimes held in contrast to conservatism.

Since liberalism focuses on the ability of individuals to structure society, it is opposed to totalitarianism and

collectivitis ideologies like communism.

The word "liberal" derives from the Latin "liber" ("free"). Liberals of all shades tend to value freedom

instead of government control.

Some adherents of liberalism sympathize with some of the aims and methods of social democracy arguing

that the government should provide some form of health services and basic education for which taxation is

needed.

Since liberalism is broad, and generally pragmatic in its orientation, there is no hard and fast list of policy

prescriptions which can be universally assumed to be "liberal".

In some circumstances there will be tax increases, in others tax decreases. In some cases there will be the

creation of a quasi-public entity to perform a function, in other cases privatization or the creation of a

government program.

The ideas of universal human rights, transparency of government, popular sovereignty, national self-

determination, the rule of law, fundamental equality are often linked to the more obvious liberal principles

of notion of private property, non-interference of state in economic processes, although there is a wide gap

between statements and reality.

Neoliberalism

Neoliberalism is an economic ideology rather than a broader political ideology . The swing away from

government action in the 1970s led to the introduction of this term, which refers to a program of reducing

trade barriers and internal market restrictions as a way towards a more free market capitalist system.

Neoliberalism accepts some government involvement in the economy, particularly the need for a central

bank and national defense, but it seeks to reduce government regulation as much as possible.

While neoliberalism is sometimes described as overlapping with Thatcherism, many prominent economists

and institutions, like the World Bank are influenced by the "neoliberal" philosophy.

This economic agenda is not necessarily combined with a liberal agenda in politics. An extreme example was

the Pinochet regime in Chile, but even the US President Regan was being neo-liberal.

Neoliberals support big business and try to promote it as a sure route to economic growth and `trickling

down' economic prosperity.

Relevant Vocabulary

Notion idea

Regulation - to guide

Route way or means

Overlapping cutting across

International Relations-PSC 201

Suggested Readings

Students are advised to read the following to develop a better understanding of the various principals

highlighted in this hand-out:

http://en.wikipedia.org/wiki/Liberalism

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