Research Assignments on Development

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This essay is an attempt to critically discuss the main tenets of the neo classical economic liberalism. To achieve the objective of our discussion, the essay will proceed as follows; the essay will start by defining the term economic liberalism. Secondly, the essay will discuss some of the main tenets of the neo classical economic liberalism. Thereafter, the essay will give reasons why LDCs should entirely depend on the notions of economic liberalism. Relevant examples will be given to support our discussion. Finally a conclusion will be drawn. Economic liberalism is the economic component of classical liberalism. Economic liberalism is an economic theory advocating free competition and a self-regulating market. It is an economic philosophy that supports and promotes laissez-faire economics and private property in the means of production. The term laissez-faire implies that This theory that people should be left alone because their self-interested activities in the market were self-regulating, guided by natural economic laws that were far more conducive to social well-being than the directives of state authorities (Sylvia, 2002: 52) Proponents of economic liberalism believe political freedom and social freedom are inseparable with economic freedom, and use philosophical arguments promoting liberty to justify economic liberalism and the free market. Although economic liberalism can be supportive of government regulation to a certain degree, it tends to oppose government intervention in the free market that inhibits free trade and competition. Theories in support of economic liberalism were developed in the Enlightenment, and believed to be first fully formulated by Adam Smith, which advocates minimal interference of government in a market economy, though it does not necessarily oppose the state's provision of a few basic public goods with what constitutes public goods originally being seen as very limited in scope (Jcqueline, 2007: 45). According to Frederick...
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