The definition of liberalism is that it is a quality or state of one being liberal in terms of attitude or behaviour. Another definition is a social or political philosophy advocating for the freedom of individuals, the government parliamentary system, political modification of nonviolence, economic or social institution to assure unrestricted development in all aspects of human endeavours and the government guarantee of civil liberties and individual right (Bell 682). Liberalism can also be defined as the movement in the modern Protestantism which focuses on freedom from authority and traditions, the adjustment of scientific religious belief conception and the spiritual capacities of development. Another meaning is that it is a thesis in economics that emphasizes on individual freedom from restrains and is usually based on the self-regulating market, free competition, and the good standards. Liberalism consists of a vast spectrum of political philosophies that considers individuals liberty to be the key political goal and focuses on individual right and equal opportunities for all.
There are different types of liberalism which include: economic liberalization which is the reduction of government restriction in an economy in exchange for a substantial participation by all private organizations or entities. The liberalism in economic doctrine is linked to classical liberalism. The economic liberation is the elimination of control in order to promote economic development and growth. Economic liberalism promotes freedom of action for individuals and or organization via the doctrine of self-interest, free trade, competition and private property (Wacziarg and Karen 188). Based on this philosophy, individuals are open to seeking their personal occupations, undertake any business, and take action as they deem fit to enhance personal economic welfare. In this type of liberalism economic decisions are made by household or individuals rather than by organization or collective institution. The economic liberalism began in a response to feudalism and mercantilism (DeMichele). Currently, economic liberalism is viewed as being opposed to the non-capitalist economic orders which include planned economies and socialism. In addition, it also differs with protectionism since it supports open markets and free trade.
Classical liberalism is a political ideology that values individual privacy and freedoms such as freedom of speech, religion, assembly, press, limited government, and market. Classical liberalism emphasizes more on civil liberties under the rule of law with a focus on economic freedom. Classical liberalism began as a response to industrial revolution and urbanization in both the US and Europe. Neoliberalism is a policy model and ideology that focuses on the merit of the free-market competition. Neoliberalism is commonly associated with the economics of laissez-faire (DeMichele). Neoliberalism is characterized by a belief in a sustainable economic growth to achieve human progress and maintains its confidence in the free market as the most efficient allocation of resources. Neoliberalism focuses on minimal states interventions in the social and economic affair and its commitment to the freedom of capital and trade.
Social liberalism is defined as a political ideology which focuses on the expansion of civil rights and political rights, the market economy and also believes in the legitimacy of the government's role such as addressing the social and economic issues that include health care, poverty, and education. Social liberalism is also referred to as modern liberalism. In this type of liberalism, the community good is seen as harmonious to individual’s freedom. The social liberal policy is vastly adopted in the capitalist world. Political liberalism is a doctrine that emphasizes on enhancing and protection of individuals freedom and making it a central political problem (DeMichele). Liberals believe the government is vital l in protecting individuals from harm by other, however, they also recognize that the same government can be a danger to liberty. Political liberalism devices a system which gives power to the government in order to safeguard individual’s liberty, but also prevent those that governs from abusing that same power. Liberals also believe in the role of justice this is that the government should not be biased in competing for the conception of an individual good.
Liberal feminism emphasizes the ability of women to maintain equality via their own choices and action. The liberal feminism focuses on making political and legal right of both women and men equal. The liberals argue that the society holds a belief that women are lesser being by nature, intellectually and in physical capabilities than men thus discrimination against women in forums, marketplace and academy. Hence the struggle for sexual equality through legal and political reforms. They also believe that no custom or government should hinder the exercising of individual freedom (Borchorst, Anette, and Birte 207). Cultural liberalism focuses on societal views that interfere with the individual’s freedom from cultural norms. Cultural liberals share a belief that the society should not inflict any special code of behaviour on individuals in order to defend moral right of eccentrics this is the expression of their personal identity as they seem fit without harming others. Conservative liberalism is an alternative to liberalism which combines policies and values with conservative bearings or simply demonstrating the liberal movement of the right wing. Conservative liberalism is less radical and more positive alternative to classical liberalism ("Liberalism - By Branch / Doctrine - The Basics Of Philosophy"). The liberals tend to join traditional stances and liberal market policies on ethical and social issues.
Global integration of world economy is significant for Nations to enhance development, reduce poverty levels and increase economic growth. Economy liberalization is significant and beneficial in several ways to the economy and state. Policies that promote open trade and investments with other countries are significant for a sustainable economic growth. Countries opening up their markets to the global economy have enabled developing countries to have a competitive advantage over other countries in the manufacturing of specific products. Open global economies tend to develop faster than countries with a closed global market (Wacziarg and Karen 190). Countries with high rates of poverty also benefit from free trade policy of liberalization since they are channelled to a small privileged interest that is provided by trade protection. Economy liberalization also increases the potential of eliminating trade barriers between countries.
With the election of Trump, people across the globe were forced to accept any form of change that was to be witnessed in the global economy. Some of the major areas to be affected were free trade and protectionism. The changes were not only going to affect the immigrants but also businessmen hailing from different corners of the world. Brexit from European Union is another changer with great impact on liberalism. Free trade is based on agreements signed between countries so as to drop the importation barriers and allow faster movement of foreign services and good for level playing field with domestic products. Among the earliest economies that supported free trade include Adam Smith who was seen as a liberal persuader. Based on Smith stand over the foreign market, free trade was believed to not only expand the market but also facilitate the greater division of labor and opportunities (Smith 36).
Other supporters of economic liberalism and free trade included David Ricardo who became interested in the political economy through works of Smith. Jean Baptiste Say argued that imposition of tariffs only promoted the creation castes (Chang 231). An idea that was also advocated for by John Stuart Mill who proposed non-imposition of tariffs on goods that do not complement the ones produced domestically (Mill 165). Imposition of tariff on imported goods was viewed as a way of rendering the capital and labor of country to be inefficient and the considered as anti-liberalism. However, the move towards economic liberalization through the facilitation of free trade was opposed by other economists such as John Maynard Keynes and Friedrich von Hayek who supported protectionist theory just as witnessed currently in the U.S (Cheney 19). Despite the economist differences, each of them believed that there was a need to protect the native market and products.
Currently, most nations enter into trade agreement talks with other foreign nation with the aim of bolstering their economy as well as create employment. The signing of such agreement is a sign of trade liberalism and an act that promote trade among nations. Brexit from EU signifies that there should be signing of new trade agreements as well as renegotiating the old ones. Some of the countries affected by the move include the nations that are currently within the EU. Without signing of new agreements, Brit will remain as one of the key hindrances to economic liberalism. The fear is further aggravated by the election of Trump who has been perceived by most people as anti-liberalism. With the frequent call for protectionism in the U.S, most countries that traded with the U.S found themselves in hard positions. Jean Baptiste Say argued that protectionist measures not only affect trade but also reduce the purchasing of individuals within foreign nations or markets. Based on Say argument, countries such as the U.S and Britain stands to face the consequences of anti-liberalism.
The acts of protectionism tend to protect domestic industries and workers from foreigners and foreign goods. Smith and David Ricardo not only supported free trade but also openly opposed protectionism since it leads to unfair privileges among trading nations. Among the key example of measures taken by Trump that in return hinders liberalism include VISA restriction to non-U.S citizen who is willing to work in U.S. others includes an increase in trade tariff for goods originating from certain countries. Currently, there is a trade ban on goods originating from some African countries in the U.S. these moves not only prevent economic liberalization but also block development in some of the developing nations.
Among effects in developing counties includes rising inequality of wealth and income among nations. Without liberalization of the economy, some of the nations which are considered to be more powerful politically and economically will continue to dominate the global market. Despite restricting other nation’s product into their domestic market, such nation’s products will still be traced in developing nation with trade restrictions. One of the contradictory statements by Hayek while addressing the inequality caused by protectionism or lack of liberalism in economics was that inequality is necessary and desirable (Hayek 194). Economic liberalism was viewed as a destruction of society due to the destruction of productive wealth. Most anti-liberalists believed that liberalism promotes preferential treatment where unproductive and fraudulent transactions are being permitted.
Among the key areas that stand to be affected most by economic liberalism includes the labor market which entails factors such as supply, demand, and wage. Economic liberalism dictates goods that are supplied to market more so if the country depends on most of the foreign products. With market tariffs or restrictions, distribution of certain goods or services will be lacking hence creating the demand pull. However, at times unregulated importation of goods and services may be detrimental and results in low wages within domestic industries. Some of the industries that are most affected are those within poor countries. With the influx of foreign goods, the developing nation’s economy tends to stagnate with GDP decreasing continuously. For such nations to witness development, the imposition of tariff s becomes necessary. The move will ensure that there is the sustainable growth of the economy as well as offer protection to the consumers.
Despite the difference in an argument over economic liberalism by various economists as mention earlier, the economist cannot be grouped into pro and anti-liberalists. One should think of them as crossover within each other. In as much as each economist’s argument may tend to be leaning towards either side of anti or pro-economic liberalists, they tend to converge at promoting trade. One of the key examples is Mill who is a strong supporter of free trade; however, in some instances, Mill supported protectionism (Mill 164). The debate on economic liberalism can therefore not be absolute although it is important to separate protectionism and free trade for the need of organization. With a comprehensive analysis of each economist opinion, one can fully understand the scope of their philosophy. With the current shift in global politics achieving economic liberalization will remain a challenge. Each nation is more focused on policy that will favor its citizens and expand on their market territory as opposed to ensuring that there is equality for all in the market.
Works cited
Friedrich von Hayek, The Road to Serfdom (Routledge: 1944; republished 2001), p. 194.
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Chang, Ha-Joon. "NEO-LIBERAL CAPITALISM." Real World Economics: A Post-autistic Economics Reader 1 (2007): 231.
Mill, John Stuart. "From Principles of Political Economy." Readings In The Economics Of The Division Of Labor: The Classical Tradition. 2005. 164-176.
Cheney, Glenn Alan. "From the Great Depression to the'great recession'." Financial Executive 27.3 (2011): 19-22.
"Liberalism - By Branch / Doctrine - The Basics Of Philosophy". Philosophybasics.Com, 2018, https://www.philosophybasics.com/branch_liberalism.html. Accessed 6 Apr 2018.
Bell, Duncan. "What is liberalism?." Political Theory 42.6 (2014): 682-715.
Borchorst, Anette, and Birte Siim. "Woman-friendly policies and state feminism: Theorizing Scandinavian gender equality." Feminist Theory 9.2 (2008): 207-224.
DeMichele, T. (2018). What is Liberalism? - Fact / Myth. [online] Fact / Myth. Available at: http://factmyth.com/what-is-liberalism/ [Accessed 6 Apr. 2018].
Wacziarg, Romain, and Karen Horn Welch. "Trade liberalization and growth: New evidence." The World Bank Economic Review 22.2 (2008): 187-231.
