Free market economy has never been in practice since the perfect competitive market is just an ideal situation. It is the economic creator of classes dividing human beings in different layers. The corporate regime came about with the neoliberal economic theory which is motivated by efficiency and trade liberalization. 'Supermarket revolution' for privileged consumers further constructed the division of farmers and consumers advancing 'new international division of labour'. Their economic power turns into the political power. The economic crisis was the result of neoliberal policy. It regenerated neoliberal atrocities and failed to improve human wellbeing at scale. State capitalism emerged as the alternative system: a compromise between competitive capitalism and socialism. However, it has several limitations. The protectionism stimulates left out people for economic growth. Egalitarian society from bottom to top is the basic part of the protective liberalism. It is neither anti-capitalism nor anti-socialism, rather the basic foundation for the transformative democracy.
Table of Contents
1. Introduction
2. Neoliberalism and Economic Policy
3. Global Economic Crisis and Impacts
4. Inequality and Human Development
5. State Capitalism and Its Limitations
6. Protective Liberalism as a Transformative Foundation
7. Governance, Solidarity, and Inclusive Democracy
Research Objectives and Themes
The work aims to critically analyze the failures of the prevailing neoliberal economic system and its contribution to global inequality, proposing "Protective Liberalism" as a foundational framework for a transformative democracy that prioritizes human well-being over materialistic accumulation.
- The systemic critique of neoliberalism and free market doctrine.
- The impact of global economic crises on vulnerable populations and food security.
- The limitations of State Capitalism as an alternative economic model.
- The conceptualization of Protective Liberalism and Inclusive Democracy.
- Strategies for grassroots empowerment and equitable economic restructuring.
Excerpt from the Book
Protective Liberalism: The Foundation for Transformative Democracy
Laissez-faire was a political as well as an economic doctrine. The pervading theory of the 19th century was that individuals, pursuing their own desired ends, would thereby achieve the best results for the society of which they were part. It is the first and most conventional economic theory also known as free market or liberal economy that advocates minimum interference by government in the economic affairs of individuals and society. However, the free market economy has never been in practice since the perfect competitive market is just an ideal situation. The price determination no more depends on supply and demand rather there are other intermediaries with strong influence in pricing. There is no individual preference in utility since the collective preferences are getting more strength due to collective identities. Likewise, neither there is 'invisible hands' as dubbed by Adam Smith nor 'other things always remain the same'. Today there are just a few people who insist that the market can regulate itself and that society can rely on the rational behavior of individuals, in order to work honestly for the benefit of everyone (Stiglitz, 2010 in Elena, 2012). So, the free market economic policies remained ideal stimulating private gain and wealth. It is the economic creator of classes dividing human beings in different layers.
Summary of Chapters
1. Introduction: Introduces the critique of the free market economy and establishes the basis for questioning traditional laissez-faire doctrines.
2. Neoliberalism and Economic Policy: Examines the rise of neoliberalism after the 1930s and its role in institutionalizing corporate power at the expense of rural and labor sectors.
3. Global Economic Crisis and Impacts: Analyzes the detrimental effects of the 2007-09 financial crisis on poverty, hunger, and government social spending.
4. Inequality and Human Development: Details the widening gap between the wealthy and the poor, highlighting income inequality and the failure of current capitalism to improve human wellbeing.
5. State Capitalism and Its Limitations: Discusses the emergence of state capitalism as a compromise model and identifies its inherent inefficiencies and tendencies toward political favoritism.
6. Protective Liberalism as a Transformative Foundation: Defines protective liberalism as an economic system that balances growth with sustainability and social protection for the vulnerable.
7. Governance, Solidarity, and Inclusive Democracy: Explores the necessity of inclusive governance, grassroots empowerment, and the integration of social and economic policies to achieve a transformative democracy.
Keywords
Protective Liberalism, Transformative Democracy, State Capitalism, Neoliberalism, Inequality, Inclusive Democracy, Human Wellbeing, Social Protection, Economic Policy, Global Economy, Poverty Reduction, Grassroots Empowerment, Corporate Power.
Frequently Asked Questions
What is the primary focus of this work?
The work explores the inherent failures of the neoliberal economic model and proposes "Protective Liberalism" as a necessary foundation for achieving a truly transformative democracy.
What are the central themes discussed?
Central themes include the critique of laissez-faire economics, the impact of neoliberal policies on inequality, the limitations of state capitalism, and strategies for building an economy that prioritizes human well-being.
What is the main research objective?
The objective is to identify a viable economic and political path—transformative democracy—that addresses structural inequalities and empowers marginalized populations.
Which scientific approach does the author use?
The author employs a critical socioeconomic analysis, synthesizing historical economic theories with contemporary reports on global development and poverty metrics.
What is covered in the main body of the text?
The main body covers the history of economic policies, the causes of the 2007-09 economic crisis, data on global wealth distribution, and comparative analysis of different economic governance models.
How would you describe the work using keywords?
Key terms include Protective Liberalism, Transformative Democracy, State Capitalism, Neoliberalism, and Inclusive Democracy.
What is the "Supermarket revolution" mentioned in the text?
It refers to a phenomenon that favored privileged consumers while weakening small farmers and further entrenching the "new international division of labour".
How does the author define "Protective Liberalism"?
It is defined as an economic system that balances economic growth with sustainability and human flourishing, with a specific focus on the most vulnerable as the bottom line.
What role does the "Third Way" play in the author's argument?
The author refers to Anthony Giddens' "Third Way" as a rational blend of opposing ideologies aimed at transcending absolute socialism and neoliberalism to build an egalitarian society.
- Arbeit zitieren
- PhD Man Bishwakarma (Autor:in), 2020, Protective Liberalism: The Foundation for Transformative Democracy, München, GRIN Verlag, https://www.grin.com/document/1045029
