The Spread of Liberal Economies

What is economic liberalism?

An ideology arguing that economies work best when government interference is limited and individuals are free to make economic choices.

What economic system is economic liberalism rooted in?

Capitalism.

What does economic liberalism support?

Private ownership, free markets, competition and limited government intervention.

How should markets operate according to economic liberalism?

Markets should largely regulate themselves through supply and demand.

What should the state's economic role be according to economic liberalism?

Maintaining law and order, enforcing contracts and protecting property rights rather than managing the economy.

How does economic liberalism promote individualism?

Individuals are encouraged to pursue their own economic interests.

What is the expected result of economic individualism?

Greater efficiency, innovation and overall prosperity.

How do liberal economies contribute to globalisation?

They encourage trade between states and reduce barriers to international economic activity.

Which IGOs promote liberal economic ideas according to the notes?

The UN, World Bank and IMF.

Why do these IGOs promote liberal economies?

They see them as a pathway towards economic growth and development.