NEOLIBERALISM

 

 

NEOLIBERALISM

Neoliberalism is an extended form of liberalism.  Whereas liberalism pleaded for generous freedom for market economy and lesser interference of the State i.e. the government in power, in business and industry and either removal or slackening of those rules which restricted the private sector to work freely in its  own way, neoliberalism demanded still more liberal attitude on the part of the government.  It demanded more and more privatisation and less and less government role in the economic systems.

The votaries of the private sector asserted that public sectors i.e. sectors  under government control were less efficient and did not have an competition amongst  themselves, hence they did not serve the interests of the consumers to the expected extent. Moreover,  they were short on quality, variety and competitive prices.  Private sector is market-oriented, competitive and most customer or consumer oriented.

So the supporters of neo-liberalisation wanted further lessening of the government control and interference.  This policy gave rise to maximum privatisation inside the country as well it gave further push to globalisation which had start ed with liberalisation. In short, the private sector demanded and  got more freedom to export its goods and also more import the material and tools required by it from foreign countries.

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