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145-496: Neoliberalism is an economic philosophy that originated among European liberal scholars during the 1930s. It emerged as a response to the perceived decline in popularity of classical liberalism , which was seen as giving way to a social liberal desire to control markets. This shift in thinking was shaped by the Great Depression and manifested in policies designed to counter the volatility of free markets . One motivation for

290-449: A labour market that will result in some unemployment . Government and judicial intervention are employed at times to change the economic incentives for people for various reasons. The capitalist economy will likely follow economic growth along with a steady business cycle . The social market economy (also known as Rhine capitalism ) is advocated by the ideology of ordoliberalism and social liberalism . This ideology supports

435-474: A shock therapy , which rapidly transformed Chile from an economy with a protected market and strong government intervention into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. Inflation was tempered, falling from over 600% in 1974, to below 50% by 1979, to below 10% right before the economic crisis of 1982 ; GDP growth spiked (see chart) to 10%. however, inequality widened as wages and benefits to

580-413: A "slowly unfolding economic disaster" and bequeathed to the world increased inequalities, societal divisions, economic misery and a lack of meaningful politics. The Great Depression in the 1930s, which severely decreased economic output throughout the world and produced high unemployment and widespread poverty , was widely regarded as a failure of economic liberalism . To renew the damaged ideology,

725-672: A "third way", an ideal mean with none of the drawbacks of the other two systems. Among the claims made for an Islamic economic system by Islamic activists and revivalists are that the gap between the rich and the poor will be reduced and prosperity enhanced by such means as the discouraging of the hoarding of wealth , taxing wealth (through zakat ) but not trade, exposing lenders to risk through profit sharing and venture capital , discouraging of hoarding of food for speculation , and other activities that Islam regards as sinful such as unlawful confiscation of land. However, critics like Timur Kuran have described it as primarily

870-462: A "vehicle for asserting the primacy of Islam", with economic reform being a secondary motive. Recently and as a complement to Islamic economics, the field of Islamic entrepreneurship or entrepreneurship from an Islamic perspective has gained traction. Islamic entrepreneurship studies the Muslim entrepreneur, entrepreneurial ventures, and contextual factors impacting entrepreneurship at the intersection of

1015-540: A coup as designed in Plan Verde were prepared for two years and finally executed during the 1992 Peruvian coup d'état , which ultimately established a civilian-military regime. Shortly after the inauguration of Fujimori, his government received a $ 715 million grant from United States Agency for International Development (USAID) on 29 September 1990 for the Policy Analysis, Planning and Implementation Project (PAPI) that

1160-435: A driving motive by investors in the quest for profits without production ; it provides a speculation aspect that offers prospects for a quicker and more speculator returns for people, wealth , and inside assumptions of the factors likely to affect asset price movements. Typically, this does not add to the collective wealth of an economy , as it can instead create economic instability. Casino capitalism falls alongside

1305-415: A drop in the real salary of the working class. They also liberalized trade policy so that foreign goods could freely enter the country. Argentina's industry, which had been on the rise for 20 years after the economic policies of former president Arturo Frondizi , rapidly declined as it was not able to compete with foreign goods. Following the measures, there was an increase in poverty from 9% in 1975 to 40% at

1450-485: A formula for an economic policy agenda and instead infuses it with a moral ethos that "aspires to be a complete way of life and a holistic worldview, in a way that previous models of capitalism did not." Neoliberalism is distinct from liberalism insofar as it does not advocate laissez-faire economic policy, but instead is highly constructivist and advocates a strong state to bring about market-like reforms in every aspect of society. Anthropologist Jason Hickel also rejects

1595-478: A free-market economy where supply and demand determine the price of goods and services, and where markets are free from regulation. However, this economic calls for state action in the form of social policy favoring social insurance, unemployment benefits and recognition of labor rights. Social Democracy is an ideology that prescribes high public enterprise and government regulation in a capitalist economy. It espouses state regulation (rather than state ownership of

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1740-898: A general opposition to Christianity that he had already begun to develop during his adolescence under the influence of Ernest Renan . His early opposition to Christianity continued to influence intellectual work of Rougier's maturity and led him in 1926 to publish a translation of Celsus that is still in use today. Rougier was also a political philosopher in the liberal tradition of Montesquieu , Constant , Guizot and Tocqueville . Consistent with his conventionalist epistemology, Rougier believed that political power rests not upon eternally-valid claims but upon, which he called mystiques . The only possible reason to prefer one political system over another, he believed, depends not on eternal truths but purely on pragmatic grounds. In other words, political systems should be chosen not based on how "true" they are but rather on how well they work. After visiting

1885-437: A government-appointed commission that ensured Pinochet would remain as president for a further eight years—with increased powers—after which he would face a re-election referendum. The Chicago Boys were given significant political influence within the military dictatorship , and they implemented sweeping economic reform . In contrast to the extensive nationalization and centrally planned economic programs supported by Allende,

2030-578: A group of 25 liberal intellectuals, including a number of prominent academics and journalists like Walter Lippmann , Friedrich Hayek , Ludwig von Mises , Wilhelm Röpke , Alexander Rüstow , and Louis Rougier , organized the Walter Lippmann Colloquium , named in honor of Lippmann to celebrate the publication of the French translation of Lippmann's pro- market book An Inquiry into the Principles of

2175-678: A new constitution to replace the Pinochet-era constitution, which entrenched certain neoliberal principles into the country's basic law, won with 78% of the vote. However, in September 2022 , the referendum to approve a rewritten the constitution was rejected with 61% of the vote. Peruvian economist Hernando de Soto , the founder of one of the first neoliberal organizations in Latin America, Institute for Liberty and Democracy (ILD), began to receive assistance from Ronald Reagan 's administration, with

2320-470: A particular individual gain or loss depending on the assets’ future movements. Other economists like Hans-Werner Sinn , have written books on casino capitalism with commentary outside the Anglo-Saxon bubble . Neo-capitalism is an economic ideology that blends elements of capitalism with other systems and emphasizes government intervention in the economy to save and reconstruct companies that are deemed

2465-627: A philosophy that was more moderate than entirely Laissez-faire free-market capitalism and favored using state policy to temper social inequality and counter a tendency towards monopoly. In 1976, the military dictatorship 's economic plan led by José Alfredo Martínez de Hoz was the first attempt at establishing a neoliberal program in Argentina. They implemented a fiscal austerity plan that reduced money printing in an attempt to counter inflation. In order to achieve this, salaries were frozen; however, they were unable to reduce inflation, which led to

2610-514: A priori truths that exist independently of the human mind, closely resembled the logical positivism of the Vienna Circle . Many members of that group, including Philipp Frank , greatly admired Rougier's 1920 work Les paralogismes du rationalisme. Rougier soon became the group's only French associate and formed close personal ties to several of its leading members, including Moritz Schlick (to whom Rougier's 1955 book Traité de la connaissance

2755-462: A recommendation to Fujimori, de Soto called for a "shock" to Peru's economy. The policies included a 300% tax increase, unregulated prices and privatizing two-hundred and fifty state-owned entities. The policies of de Soto led to the immediate suffering of poor Peruvians who saw unregulated prices increase rapidly. Those living in poverty saw prices increase so much that they could no longer afford food. The New York Times wrote that de Soto advocated for

2900-494: A risk to the nation. The ideology's prime years are considered by some economists to be the ten years leading up to 1964 after the Great Depression and World War II . After World War II, countries were destroyed and needed to rebuild and since capitalism thrives in industrializing countries. These countries most affected by the war saw a growth in capitalism. Neo-capitalism differs from regular capitalism in that while capitalism highlights private owners , neo-capitalism emphasizes

3045-476: A set of special moral norms and values about individual and social economic behavior. Therefore, it has its own economic system, which is based on its philosophical views and is compatible with the Islamic organization of other aspects of human behavior: social and political systems. It is a term used to refer to Islamic commercial jurisprudence ( fiqh al-mu'āmalāt ), and also to an ideology of economics based on

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3190-410: A type of capitalism based on open competition to determine the price , production and consumption of goods through the invisible hand of supply and demand reaching efficient market equilibrium . In such a system, capital , property and enterprise are entirely privately owned and new enterprises may freely gain market entry without restriction. Employment and wages are determined by

3335-474: Is a political philosophy which seeks to "liberate" the processes of capital accumulation . In contrast, Frances Fox Piven sees neoliberalism as essentially hyper- capitalism . Robert W. McChesney , while defining neoliberalism similarly as "capitalism with the gloves off", goes on to assert that the term was largely unknown by the general public in 1998, particularly in the United States . Lester Spence uses

3480-401: Is almost never defined but used in several senses to describe ideology, economic theory, development theory, or economic reform policy. It has become used largely as a term of abuse and/or to imply a laissez-faire market fundamentalism virtually identical to that of classical liberalism – rather than the ideas of those who attended the 1938 colloquium. As a result, there is controversy as to

3625-424: Is an economic ideology that calls for democratic institutions in the economy. These may take the form of cooperatives , workplace democracy or ad hoc approach to the management and ownership of the means of production. Democratic Socialism is a blending of socialistic and democratic ideas to create a political and economic Structure. Marxism–Leninism is a political ideology that calls for centralized planning of

3770-695: Is commonly used as a pejorative by critics, outpacing similar terms such as monetarism , neoconservatism , the Washington Consensus and "market reform" in much scholarly writing. The Handbook of Neoliberalism , for instance, posits that the term has "become a means of identifying a seemingly ubiquitous set of market-oriented policies as being largely responsible for a wide range of social, political, ecological and economic problems". Its use in this manner has been criticized by those who advocate for policies characterized as neoliberal. The Handbook , for example, further argues that "such lack of specificity [for

3915-458: Is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls , deregulating capital markets , lowering trade barriers " and reducing, especially through privatization and austerity , state influence in the economy. It is also commonly associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in

4060-627: Is dedicated) and Hans Reichenbach . Rougier also participated as an organizer and contributor to many Vienna Circle activities, including the International Encyclopedia of Unified Science . Rougier's own contribution to the Encyclopedia never materialized, however, because he soon became one of many participants who ended up quarreling with Otto Neurath , the project's editor-in-chief. Rougier's conventionalist philosophical position naturally led him to oppose Neo-Thomism , which had been

4205-477: Is distinct from an economic system that it supports, such as capitalism , to the extent that explaining an economic system ( positive economics ) is distinct from advocating it ( normative economics ). The theory of economic ideology explains its occurrence, evolution, and relation to an economy . Islamic economics refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings. The religion of Islam has

4350-458: Is freely exchanged, " from each according to his ability, to each according to his needs ". Communism is also a political system as much as an economic one—with various models in how it is implemented—the well known being the Marxist Leninist model, which argues for the use of a vanguard party to bring about a workers state to be used as a transitional tool to bring about stateless communism,

4495-497: Is inherently political in nature, extending beyond mere economic considerations. The term is rarely used by proponents of free-market policies. When the term entered into common academic use during the 1980s in association with Augusto Pinochet 's economic reforms in Chile , it quickly acquired negative connotations and was employed principally by critics of market reform and laissez-faire capitalism . Scholars tended to associate it with

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4640-712: Is near the Latin American average, Chile still has one of the highest Gini coefficients in the OECD , an organization of mostly developed countries that includes Chile but not most other Latin American countries. Furthermore, the Gini coefficient measures only income inequality ; Chile has more mixed inequality ratings in the OECD's Better Life Index , which includes indexes for more factors than only income, like housing and education . Additionally,

4785-430: Is often associated with a set of economic liberalization policies, including privatization , deregulation , consumer choice , globalization , free trade , monetarism , austerity , and reductions in government spending . These policies are designed to increase the role of the private sector in the economy and society . Additionally, the neoliberal project is oriented towards the establishment of institutions and

4930-673: Is required, prohibited, encouraged, discouraged, or just permissible, according to the revealed word of God ( Quran ) and the religious practices established by Muhammad ( sunnah ). This applied to issues like property, money, employment, taxes, loans, along with everything else. The social science of economics , on the other hand, works to describe, analyse and understand production , distribution , and consumption of goods and services , and studied how to best achieve policy goals, such as full employment, price stability, economic equity and productivity growth. Early forms of mercantilism and capitalism are thought to have been developed in

5075-758: The agrégation in philosophy from the University of Lyon , he qualified as a philosophy teacher in 1914 and worked as a teacher in several high schools, before teaching at the École Chateaubriand de Rome, Besançon, the Cairo University , the Institut Universitaire des Hautes Études Internationales de Genève (Geneva Graduate Institute of International Studies ), and the Fondation Édouard-Herriot (Édouard-Herriot Foundation) in Lyon. In 1920 he obtained his doctorate from

5220-630: The 1990 Peruvian general election , Alberto Fujimori initially expressed concern against the proposed neoliberal policies of his opponent Mario Vargas Llosa . Peruvian magazine Oiga reported that, following the election, the armed forces were unsure of Fujimori's willingness to fulfill the plan's objectives, though they planned to convince Fujimori to agree to the operation prior to his inauguration. After taking office, Fujimori abandoned his campaign's economic platform, adopting more aggressive neoliberal policies than those espoused by his election competitor Vargas Llosa. With Fujimori's compliance, plans for

5365-645: The Asia-Pacific , the Middle East , and China implementing significant neoliberal reform. Additionally, the International Monetary Fund and World Bank encouraged neoliberal reforms in many developing countries by placing reform requirements on loans, in a process known as structural adjustment . Neoliberal ideas were first implemented in West Germany . The economists around Ludwig Erhard drew on

5510-609: The COVID-19 pandemic in Peru compounded these disparities, with political scientist Professor Farid Kahhat of the Pontifical Catholic University of Peru stating that, "market reforms in Peru have yielded positive results in terms of reducing poverty ... But what the pandemic has laid bare, particularly in Peru, is that poverty was reduced while leaving the miserable state of public services unaltered – most clearly in

5655-584: The Chicago Boys , a select group of Chilean students who, beginning in 1955, were invited to the University of Chicago to pursue postgraduate studies in economics. They studied directly under Milton Friedman and his disciple, Arnold Harberger , and were exposed to Friedrich Hayek . Upon their return to Chile, their neoliberal policy proposals—which centered on widespread deregulation , privatization , reductions to government spending to counter high inflation, and other free-market policies—would remain largely on

5800-479: The Colloque Walter Lippmann , the term neoliberalism was proposed, among other terms, and ultimately chosen to be used to describe a certain set of economic beliefs. The colloquium defined the concept of neoliberalism as involving "the priority of the price mechanism, free enterprise, the system of competition, and a strong and impartial state". According to attendees Louis Rougier and Friedrich Hayek ,

5945-645: The Foundation for Economic Education , USAID, the United Nations Population Fund (UNFPA) and the Nippon Foundation also supported the sterilization efforts of the Fujimori government. E. Liagin reported that from 1993 to 1998, USAID "basically took charge of the national health system of Peru" during the period of forced sterilizations. At least 300,000 Peruvians were victims of forced sterilization by

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6090-652: The Great Recession . In sum, the neoliberal policies of the 1980s and 1990s—initiated by a repressive authoritarian government —transformed the Chilean economy from a protected market with high barriers to trade and hefty government intervention into one of the world's most open free-market economies. Chile experienced the worst economic bust of any Latin American country during the Latin American debt crisis (several years into neoliberal reform), but also had one of

6235-637: The Islamic Golden Age from the 9th century and later became dominant in European Muslim territories like Al-Andalus and the Emirate of Sicily . The Islamic economic concepts taken and applied by the gunpowder empires and various Islamic kingdoms and sultanates led to systemic changes in their economy. Particularly in the Mughal India , its wealthiest region of Bengal , a major trading nation of

6380-550: The National Endowment for Democracy 's Center for International Private Enterprise (CIPE) providing his ILD with funding. The economic policy of President Alan García distanced Peru from international markets, resulting in lower foreign investment in the country. Under García, Peru experienced hyperinflation and increased confrontations with the guerrilla group Shining Path , leading the country towards high levels of instability. The Peruvian armed forces grew frustrated with

6525-611: The Sorbonne and published his doctoral thesis as La philosophie géometrique de Poincaré and Les paralogismes du rationalisme . Rougier already had several publications to his name, however, beginning with a 1914 paper on the use of non-Euclidean geometry in relativity theory. Rougier taught in Algiers from 1917 to 1920 and then in Rome from 1920 to 1924. His first university appointment in France

6670-739: The Soviet Union in 1932 on a visit sponsored by the French Ministry of Education, Rougier became convinced that a planned economy does not work as well as a market economy . That conviction led him to participate in the organization of the first neoliberal organization of the 20th century, the Colloque Walter Lippmann , in 1938. That year, Rougier helped to found the Centre international d'études pour la rénovation du libéralisme . The political network established by both groups eventually led to

6815-471: The United States , the Chilean armed forces and national police overthrew the Allende government in a coup d'état . They established a repressive military junta , known for its violent suppression of opposition , and appointed army chief Augusto Pinochet Supreme Head of the nation. His rule was later given legal legitimacy through a controversial 1980 plebiscite , which approved a new constitution drafted by

6960-719: The Vichy regime in France during World War II . In October 1940, French Head of State Philippe Pétain sent Rougier on a secret mission to the British government in London, where Rougier met with Winston Churchill between 21 and 25 October. Rougier later claimed in several published works that these meetings resulted in an agreement between Vichy and Churchill that he called the Mission secrète à Londres : les Accords Pétain-Churchill , an allegation that

7105-506: The infant mortality rate in Chile fell from 76.1 per 1000 to 22.6 per 1000, the lowest in Latin America. Unemployment from 1980 to 1990 decreased, but remained higher than the South American average (which was stagnant). And despite public perception among Chileans that economic inequality has increased, Chile's Gini coefficient has in fact dropped from 56.2 in 1987 to 46.6 in 2017. While this

7250-461: The military rule under Augusto Pinochet (1973–1990) in Chile, opposition scholars took up the expression to describe the economic reforms implemented there and its proponents (the Chicago Boys ). Once this new meaning was established among Spanish-speaking scholars, it diffused into the English-language study of political economy. According to one study of 148 scholarly articles, neoliberalism

7395-608: The stagflation of the 1970s. The collapse of the USSR and the end of the Cold War also facilitated the rise of neoliberalism in the United States and around the world. The term neoliberalism has become increasingly prevalent in recent decades. It has been a significant factor in the proliferation of conservative and right-libertarian organizations, political parties , and think tanks , and predominantly advocated by them. Neoliberalism

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7540-497: The third way due to being heavily corporatized . Fascist economies of the mid 20th century such as Italy and Germany often used bilateral trade agreements, with heavy tariffs on imports and government subsidized exports to developing nations around the world. While economically fascism is oriented towards self-sufficiency, politically fascist countries of the mid-20th century were oriented to war and expansion; two seemingly contradictory motives. The goals of fascist nations

7685-530: The 1947 foundation of the famous Mont Pelerin Society to which Rougier was elected in the 1960s through the personal backing of Friedrich Hayek . Rougier, as one of the founding fathers of neoliberalism, would no doubt have been admitted to the first meeting of the Mont Pelerin Society but for a second political engagement, which proved disastrous to his career and his reputation: his activities on behalf of

7830-470: The 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Walter Eucken , Wilhelm Röpke , Alexander Rüstow and Alfred Müller-Armack . Although Hayek had intellectual ties to the German neoliberals, his name was only occasionally mentioned in conjunction with neoliberalism during this period due to his more pro-free market stance. During

7975-591: The 1960s, Latin American intellectuals began to notice the ideas of ordoliberalism ; they often used the Spanish term "neoliberalismo" to refer to this school of thought. They were particularly impressed by the social market economy and the Wirtschaftswunder ("economic miracle") in Germany and speculated about the possibility of accomplishing similar policies in their own countries. Neoliberalism in 1960s Argentina meant

8120-487: The 1970s to "describe and decry a late twentieth-century effort by policymakers, think-tank experts, and industrialists to condemn social-democratic reforms and unapologetically implement free-market policies"; economic historian Phillip W. Magness notes its reemergence in academic literature in the mid-1980s, after French philosopher Michel Foucault brought attention to it. At a base level we can say that when we make reference to 'neoliberalism', we are generally referring to

8265-440: The 1980s, "have contributed to steady economic growth in Chile and have more than halved poverty rates," and some scholars have even called the period the " Miracle of Chile ". Other scholars have called it a failure that led to extreme inequalities in the distribution of income and resulted in severe socioeconomic damage. It is also contested how much these changes were the result of neoliberal economic policies and how much they were

8410-498: The 1990s, Chile maintained high growth, averaging 7.3% from 1990 to 1998. Eduardo Aninat, writing for the IMF journal Finance & Development , called the period from 1986 to 2000 "the longest, strongest, and most stable period of growth in [Chile's] history." In 1999, there was a brief recession brought about by the Asian financial crisis , with growth resuming in 2000 and remaining near 5% until

8555-454: The British government later denied in an official White Paper . Although those activities and publications eventually led to Rougier's dismissal in 1948 from his teaching position at the University of Besançon, he continued to be active throughout the 1950s in organisations that defended Pétain. He also published works denouncing the épuration , the French equivalent of denazification , which

8700-558: The Chicago Boys implemented rapid and extensive privatization of state enterprises, deregulation, and significant reductions in trade barriers during the latter half of the 1970s. In 1978, policies that would further reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced.> Additionally, the central bank raised interest rates from 49.9% to 178% to counter high inflation. These policies amounted to

8845-458: The Communist Party ), communism is the evolved result of socialism so that the central role of the state has 'withered away' and is no longer necessary for the functioning of a planned economy . All means of production are collectively owned and managed in a communal, classless society. Currency is no longer needed, and all economic activity, enterprise, labour, production and consumption

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8990-550: The Democratic Party of the United States. The neoliberals coalesced around two magazines, The New Republic and the Washington Monthly , and often supported Third Way policies. The "godfather" of this version of neoliberalism was the journalist Charles Peters , who, in 1983, published "A Neoliberal's Manifesto". Historian Elizabeth Shermer argued that the term gained popularity largely among left-leaning academics in

9135-557: The French writer Alain de Benoist . Rougier's long-standing opposition to Christianity , together with his conviction that "the West" possesses a pragmatically-superior mentalité to those of other cultures, aligned closely with the views of that movement. Benoist reissued and wrote prefaces to several of Rougier's earlier works, and in 1974, Benoist's thinktank, GRECE , published an entirely-new book by Rougier: Le conflit du Christianisme primitif et de la civilisation antique . Rougier lived to

9280-463: The Fujimori government in the 1990s, with the majority being affected by the PNSRPF . The policy of sterilizations resulted in a generational shift that included a smaller younger generation that could not provide economic stimulation to rural areas, making such regions more impoverished. Though economic statistics show improved economic data in Peru in recent decades, the wealth earned between 1990 and 2020

9425-724: The Good Society . Meeting in Paris in August 1938, they called for a new liberal project, with "neoliberalism" one name floated for the fledgling movement. They further agreed to develop the Colloquium into a permanent think tank based in Paris called the Centre International d'Études pour la Rénovation du Libéralisme. While most agreed that the status quo liberalism promoting laissez-faire economics had failed, deep disagreements arose around

9570-468: The Great Depression while Mises denounced the other faction, complaining that the ordoliberalism they advocated really meant "ordo-interventionism". Divided in opinion and short on funding, the Colloquium was mostly ineffectual; related attempts to further neoliberal ideas, such as the effort by Colloque-attendee Wilhelm Röpke to establish a journal of neoliberal ideas, mostly floundered. Fatefully,

9715-492: The Islamic faith and entrepreneurial activities. Capitalism is a broad economic system where the means of production are largely or entirely privately owned and operated for profit , where the allocation of capital goods is determined by capital markets and financial markets . There are several implementations of capitalism that are loosely based around how much government involvement or public enterprise exists. The main ones that exist today are mixed economies , where

9860-461: The Muslim world and in the West. The central features of an Islamic economy are often summarized as: (1) the "behavioral norms and moral foundations" derived from the Quran and Sunnah ; (2) collection of zakat and other Islamic taxes , (3) prohibition of interest ( riba ) charged on loans. Advocates of Islamic economics generally describe it as neither socialist nor capitalist , but as

10005-536: The United States. Some scholars note it has a number of distinct usages in different spheres: There is debate over the meaning of the term. Sociologists Fred L. Block and Margaret Somers claim there is a dispute over what to call the influence of free-market ideas which have been used to justify the retrenchment of New Deal programs and policies since the 1980s: neoliberalism, laissez-faire or "free market ideology". Other academics such as Susan Braedley, Med Luxton, and Robert W. McChesney, assert that neoliberalism

10150-434: The agency concluding in 1997 that it helped with the "preparation of legislative texts" and "contributed to the emergence of a private sector advisory role". The policies promoted by de Soto and implemented by Fujimori eventually caused macroeconomic stability and a reduction in the rate of inflation , though Peru's poverty rate remained largely unchanged with over half of the population living in poverty in 1998. According to

10295-407: The case of health services." The candidacy of Pedro Castillo in the 2021 Peruvian general election brought attention to the disparities between urban and rural Peruvians, with much of his support being earned in the exterior portions of the country. Castillo ultimately won the election, with The New York Times reporting his victory as the "clearest repudiation of the country's establishment". In

10440-474: The classical liberal notion that competition drives economic prosperity. However, they argued that a laissez-faire state policy stifles competition, as the strong devour the weak since monopolies and cartels could pose a threat to freedom of competition. They supported the creation of a well-developed legal system and capable regulatory apparatus. While still opposed to full-scale Keynesian employment policies or an extensive welfare state , German neoliberal theory

10585-419: The collapse of Peru's society, with the economist saying that a civil crisis was necessary to support the policies of Fujimori. Fujimori and de Soto would ultimately break their ties after de Soto recommended increased involvement of citizens within the government, which was received with disapproval by Fujimori. USAID would go on to assist the Fujimori government with rewriting the 1993 Peruvian constitution, with

10730-478: The competition of neoliberalism would establish an elite structure of successful individuals that would assume power in society, with these elites replacing the existing representative democracy acting on the behalf of the majority. To be neoliberal meant advocating a modern economic policy with state intervention . Neoliberal state interventionism brought a clash with the opposing laissez-faire camp of classical liberals, like Ludwig von Mises . Most scholars in

10875-465: The developed world was under threat from collectivist trends, which they outlined in their statement of aims: The central values of civilization are in danger. Over large stretches of the Earth's surface the essential conditions of human dignity and freedom have already disappeared. In others, they are under constant menace from the development of current tendencies of policy. The position of the individual and

11020-450: The development of policies designed to mitigate the volatility of capitalist free markets was a desire to avoid repeating the economic failures of the early 1930s, which have been attributed, in part, to the economic policy of classical liberalism. In the context of policymaking, the term neoliberalism is often used to describe a paradigm shift that followed the failure of the post-war consensus and neo-Keynesian economics to address

11165-518: The dominant coordination mechanism employed ( economic planning or markets ) and by the type of ownership employed ( Public ownership or cooperatives ). In some models of socialism (often called market socialism ), the state approves of the prices and products produced in the economy, subjecting the market system to direct external regulations. Alternatively, the state may produce the goods but then sell them in competitive markets. Democratic socialism (sometimes referred to as economic democracy )

11310-549: The early 1970s. After several years of socialist economic policies under president Salvador Allende , a 1973 coup d'état , which established a military junta under dictator Augusto Pinochet , led to the implementation of a number of sweeping neoliberal economic reforms that had been proposed by the Chicago Boys , a group of Chilean economists educated under Milton Friedman . This "neoliberal project" served as "the first experiment with neoliberal state formation" and provided an example for neoliberal reforms elsewhere. Beginning in

11455-563: The early 1980s, the Reagan administration and Thatcher government implemented a series of neoliberal economic reforms to counter the chronic stagflation the United States and United Kingdom had each experienced throughout the 1970s. Neoliberal policies continued to dominate American and British politics until the Great Recession . Following British and American reform, neoliberal policies were exported abroad, with countries in Latin America ,

11600-576: The economic and government institutions of civilization which they argue are authoritarian , exploitative, and abstract and return humanity to a way of living which is harmonious with the natural world in which technology used mostly individually to create tools for survival much like in primitive cultures and tribes where they argue there is little need for abstract things such as an economy or government. Louis Rougier Louis Auguste Paul Rougier (birth name: Paul Auguste Louis Rougier ) ( French: [ʁuʒje] ; 10 April 1889 – 14 October 1982)

11745-438: The economic arrangement described above. Other models to bring about communism include anarcho-communism , which argues similarly to Marxist schools for a revolutionary transformation to the above economic arrangement, but does not use a transitional period or vanguard party. Anarcho-primitivism strives to return humans to a pre-industrialized and pre-civilization state. From an economic standpoint, advocates of this model argue

11890-492: The economy. It would not be until a succession of economic downturns and crises in the 1970s that neoliberal policy proposals would be widely implemented. By this time, neoliberal thought had evolved. The early neoliberal ideas of the Mont Pelerin Society had sought to chart a middle way between the trend of increasing government intervention implemented after the Great Depression and the laissez-faire economics many in

12035-485: The economy. This ideology formed the economic basis of all existing Socialist states . Socialist doctrines essentially promote the collectivist idea that an economy's resources should be used in the interest of all participants, and not simply for private gain. This ideology historically opposed the market economy , and tended to favor central planning . As Karl Marx and Friedrich Engels described it (in Manifesto of

12180-429: The efforts of the Colloquium would be overwhelmed by the outbreak of World War II and were largely forgotten. Nonetheless, the Colloquium served as the first meeting of the nascent neoliberal movement and would serve as the precursor to the Mont Pelerin Society , a far more successful effort created after the war by many of those who had been present at the Colloquium. Neoliberalism began accelerating in importance with

12325-411: The end of 1982. Economic philosophy An economic ideology is a set of views forming the basis of an ideology on how the economy should run. It differentiates itself from economic theory in being normative rather than just explanatory in its approach, whereas the aim of economic theories is to create accurate explanatory models to describe how an economy currently functions. However,

12470-423: The environment. They argue that the more people live in a society, the more resources they will need. These resources must be taken from the Earth and therefore lead to environmental exploitation. However, they claim that materialist exploitation can be seen throughout almost every society in the world today. This materialism creates inequalities and exploitation such as class structure , the exploitation of humans in

12615-444: The epicenter of the community as Europeans dominated the leadership roles. Established during a time when central planning was in the ascendancy worldwide and there were few avenues for neoliberals to influence policymakers, the society became a "rallying point" for neoliberals, as Milton Friedman phrased it, bringing together isolated advocates of liberalism and capitalism . They were united in their belief that individual freedom in

12760-470: The establishment of the Mont Pelerin Society in 1947, whose founding members included Friedrich Hayek , Milton Friedman , Karl Popper , George Stigler and Ludwig von Mises . Meeting annually, it became a "kind of international 'who's who' of the classical liberal and neo-liberal intellectuals." While the first conference in 1947 was almost half American, the Europeans dominated by 1951. Europe would remain

12905-492: The exploitation of humans. "Technology is not a simple tool which can be used in any way we like. It is a form of social organization, a set of social relations. It has its own laws. If we are to engage in its use, we must accept its authority. The enormous size, complex interconnections and stratification of tasks which make up modern technological systems make authoritarian command necessary and independent, individual decision-making impossible." Anarcho-primitivists seek to revert

13050-592: The former seeks to disrupt and overcome any institutions which stand in the way. Radhika Desai, director of the Geopolitical Economy Research Group at the University of Manitoba , argues that global capitalism reached its peak in 1914, just prior to the two great wars, anti-capitalist revolutions and Keynesian reforms, and the purpose of neoliberalism was to restore capitalism to the preeminence it once enjoyed. She argues that this process has failed as contemporary neoliberal capitalism has fostered

13195-427: The fringes of Chilean economic and political thought for a number of years, as the presidency of Salvador Allende (1970–1973) brought about a socialist reorientation of the economy. During the Allende presidency, Chile experienced a severe economic crisis, in which inflation peaked near 150%. Following an extended period of social unrest and political tension, as well as diplomatic, economic, and covert pressure from

13340-438: The growth of a view of history which denies all absolute moral standards and by the growth of theories which question the desirability of the rule of law. It holds further that they have been fostered by a decline of belief in private property and the competitive market...[This group's] object is solely, by facilitating the exchange of views among minds inspired by certain ideals and broad conceptions held in common, to contribute to

13485-448: The high interest rates of the period which—while stabilizing inflation—hampered investment and contributed to widespread bankruptcy in the banking industry. Other scholars fault governmental departures from the neoliberal agenda ; for instance, the government pegged the Chilean peso to the US dollar, against the wishes of the Chicago Boys, which economists believe led to an overvalued peso. After

13630-436: The idea of a speculation -based economy where entrepreneurial activities turn to more paper games of speculative trading than actually producing economic goods and services . It is believed by people such as economists Frank Stilwell that casino capitalism was one of the leading causes of the 2007–2008 financial crisis . Investors sought out a get-rich-quick motive they found through speculative activities that offered

13775-418: The idea that the word is nothing more than a political slur, or a term without any analytic power". Gary Gerstle argues that neoliberalism is a legitimate term, and describes it as "a creed that calls explicitly for unleashing capitalism's power." He distinguishes neoliberalism from traditional conservatism, as the latter values respect for traditions and bolstering the institutions which reinforce them, whereas

13920-477: The inability of the García administration to handle the nation's crises and began to draft an operation – Plan Verde – to overthrow his government. The military's Plan Verde involved the " total extermination " of impoverished and indigenous Peruvians perceived as a drain on the economy, the control or censorship of media in the nation and the establishment of a neoliberal economy in Peru. During his campaigning for

14065-460: The increased economic freedom he believed the neoliberal reforms had brought had put pressure on the dictatorship over time, resulting in a gradual increase in political freedom and, ultimately, the restoration of democracy. The Chilean scholars Javier Martínez and Alvaro Díaz reject this argument, pointing to the long tradition of democracy in Chile. They assert that the defeat of the Pinochet regime and

14210-529: The influence of Henri Poincaré and Ludwig Wittgenstein , Rougier developed a philosophy based on the idea that systems of logic are neither apodictic ( i.e. , necessarily true and therefore deducible ) nor assertoric ( i.e. , not necessarily true and whose truth must therefore be induced through empirical investigation). Instead, Rougier proposed that the various systems of logic are simply conventions that are adopted based on contingent circumstances. That view, which implies that there are no "objective"

14355-521: The interventionist excesses of the Erhard ministry and the ordoliberals, Mises wrote: "I have no illusions about the true character of the politics and politicians of the social market economy". According to Mises, Erhard's teacher Franz Oppenheimer "taught more or less the New Frontier line of" President Kennedy's "Harvard consultants ( Schlesinger , Galbraith , etc.)". In Germany, neoliberalism at first

14500-431: The label "neoliberalism", criticized that development tendency and pressed for a more limited welfare program. Hayek did not like the expression "social market economy", but stated in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase. In Hayek's view, the social market economy's aiming for both a market economy and social justice

14645-475: The liberal focus on individualism and economic freedom must not be abandoned to collectivism. For decades after the formation of the Mont Pelerin Society , the ideas of the society would remain largely on the fringes of political policy, confined to a number of think-tanks and universities and achieving only measured success with the ordoliberals in Germany , who maintained the need for strong state influence in

14790-521: The means of production) and extensive social welfare programs. Social democracy became associated with Keynesianism, the Nordic model, the social liberal paradigm and welfare states within political circles in the late 20th century. Casino capitalism is the high risk-taking and financial instability associated with financial institutions becoming very large and mostly self-regulated, while also taking on high-risk financial investment dealings. This has been

14935-496: The medieval world, signaled the period of proto-industrialization , making direct contribution to the world's first Industrial Revolution after the British conquests . In the mid-twentieth century, campaigns began promoting the idea of specifically Islamic patterns of economic thought and behavior. By the 1970s, "Islamic economics" was introduced as an academic discipline in a number of institutions of higher learning throughout

15080-419: The most important old age income source for a majority of the German population, therefore despite liberal rhetoric the 1950s witnessed what has been called a "reluctant expansion of the welfare state". To end widespread poverty among the elderly the pension reform of 1957 brought a significant extension of the German welfare state which already had been established under Otto von Bismarck . Rüstow, who had coined

15225-482: The most robust recoveries, rising from the poorest Latin American country in terms of GDP per capita in 1980 (along with Peru) to the richest in 2019. Average annual economic growth from the mid-1980s to the Asian crisis in 1997 was 7.2%, 3.5% between 1998 and 2005, and growth in per capita real income from 1985 to 1996 averaged 5%—all outpacing Latin American averages. Inflation was brought under control. Between 1970 and 1985

15370-570: The name of labor and profit, and most importantly environmental destruction and deterioration. This exploitation has led to the increase in human population growth, activity, and development which they argue is destroying the Earth's ecosystems . They emphasize coexisting with the natural world instead of destroying it, "a world order on our planet where human civilization is brought into harmony with nature". Anarcho-primitivists differ from other anarchist and green ideologies by opposing technological and industrial advancement as it further propagates

15515-616: The neoliberal policies of the Chicago boys. Some scholars attribute the successes to the re-regulation of the banking industry and a number of targeted social programs designed to alleviate poverty. Others say that while the economy had stabilized and was growing by the late 1980s, inequality widened: nearly 45% of the population had fallen into poverty while the wealthiest 10% had seen their incomes rise by 83%. According to Chilean economist Alejandro Foxley , when Pinochet finished his 17-year term by 1990, around 44% of Chilean families were living below

15660-404: The new political, economic and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility . Most scholars tend to agree that neoliberalism is broadly defined as the extension of competitive markets into all areas of life, including the economy , politics and society . The Handbook of Neoliberalism Neoliberalism

15805-451: The non-necessity of economic systems for human existence. Proponents of this ideology believe that the entire history of human civilization took a wrong turn from hunter-gatherer systems into an agricultural system and has led to human dependence on technology to support increasing populations, government control, and culture. Population growth and the institutions created to support and control it are exploitative of not only humans but also

15950-508: The notion that neoliberalism necessitates the retreat of the state in favor of totally free markets, arguing that the spread of neoliberalism required substantial state intervention to establish a global 'free market'. Naomi Klein states that the three policy pillars of neoliberalism are " privatization of the public sphere, deregulation of the corporate sector, and the lowering of income and corporate taxes , paid for with cuts to public spending ". According to some scholars, neoliberalism

16095-538: The official philosophy of the Roman Catholic Church since the 1879 encyclical Aeterna Patris but was gaining particular momentum during the 1920s and the 1930s. Rougier published several works during this period attacking the contemporary revival of scholasticism , thereby earning the personal enmity of prominent Thomists such as Étienne Gilson and Jacques Maritain . Rougier's objections to Neo-Thomism were not merely philosophical, however, but formed part of

16240-430: The percentage of the Chilean population living in poverty rose from 17% in 1969 to 45% in 1985 at the same time government budgets for education, health and housing dropped by over 20% on average. The era was also marked by economic instability. Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The CIA World Factbook states that Chile's "sound economic policies", maintained consistently since

16385-578: The poverty line. Despite years of suppression by the Pinochet junta, a presidential election was held in 1988, as dictated by the 1980 constitution (though not without Pinochet first holding another plebiscite in an attempt to amend the constitution). In 1990, Patricio Aylwin was democratically elected, bringing an end to the military dictatorship. The reasons cited for Pinochet's acceptance of democratic transition are numerous. Hayek, echoing arguments he had made years earlier in The Road to Serfdom , argued that

16530-510: The precise meaning of the term and its usefulness as a descriptor in the social sciences , especially as the number of different kinds of market economies have proliferated in recent years. Unrelated to the economic philosophy described in this article, the term "neoliberalism" is also used to describe a centrist political movement from modern American liberalism in the 1970s. According to political commentator David Brooks , prominent neoliberal politicians included Al Gore and Bill Clinton of

16675-621: The preservation and improvement of the free society. The society set out to develop a neoliberal alternative to, on the one hand, the laissez-faire economic consensus that had collapsed with the Great Depression and, on the other, New Deal liberalism and British social democracy , collectivist trends which they believed posed a threat to individual freedom. They believed that classical liberalism had failed because of crippling conceptual flaws which could only be diagnosed and rectified by withdrawing into an intensive discussion group of similarly minded intellectuals; however, they were determined that

16820-413: The proper role of the state . A group of "true (third way) neoliberals" centered around Rüstow and Lippmann advocated for strong state supervision of the economy while a group of old school liberals centered around Mises and Hayek continued to insist that the only legitimate role for the state was to abolish barriers to market entry. Rüstow wrote that Hayek and Mises were relics of the liberalism that caused

16965-402: The recession, Chilean economic growth rose quickly, eventually hovering between 5% and 10% and significantly outpacing the Latin American average (see chart). Additionally, unemployment decreased and the percent of the population below the poverty line declined from 50% in 1984 to 34% by 1989. This led Milton Friedman to call the period the " Miracle of Chile ", and he attributed the successes to

17110-589: The result of other factors; in particular, some scholars argue that after the Crisis of 1982 the "pure" neoliberalism of the late 1970s was replaced by a focus on fostering a social market economy that mixed neoliberal and social welfare policies. As a response to the 2019–20 Chilean protests , a national plebiscite was held in October 2020 to decide whether the Chilean constitution would be rewritten. The "approve" option for

17255-522: The return of democracy came primarily from large-scale mass rebellion that eventually forced party elites to use existing institutional mechanisms to restore democracy. In the 1990s, neoliberal economic policies broadened and deepened, including unilateral tariff reductions and the adoption of free trade agreements with a number of Latin American countries and Canada. At the same time, the decade brought increases in government expenditure on social programs to tackle poverty and poor quality housing. Throughout

17400-421: The role of the state in sustaining the country as a provider and a producer and condemns private companies for lacking in their role as a provider and producer for their country. Critics of neo-capitalism claim that it tends to suppress the reserve army of labor , which may lead to full employment, as this can undermine one of the main basics that make capitalism work. Other critics state that if neo-capitalism

17545-445: The society believed had produced the Great Depression. Milton Friedman , wrote in his early essay "Neo-liberalism and Its Prospects" that "Neo-liberalism would accept the nineteenth-century liberal emphasis on the fundamental importance of the individual, but it would substitute for the nineteenth century goal of laissez-faire as a means to this end, the goal of the competitive order", which requires limited state intervention to "police

17690-419: The state intervenes in market activity and provides some services; laissez faire , where the state only supplies a court, a military, and police; and state capitalism , where the state engages in commercial business activity itself. Laissez-faire, or free market capitalism, is an ideology that prescribes minimal public enterprise and government regulation in a capitalist economy. This ideology advocates for

17835-447: The substantial neoliberal reforms in Chile beginning in the 1970s as "the first experiment with neoliberal state formation", which would provide "helpful evidence to support the subsequent turn to neoliberalism in both Britain... and the United States." Similarly, Vincent Bevins says that Chile under Augusto Pinochet "became the world's first test case for 'neoliberal' economics." The turn to neoliberal policies in Chile originated with

17980-478: The system, establish conditions favorable to competition and prevent monopoly , provide a stable monetary framework , and relieve acute misery and distress." By the 1970s, neoliberal thought—including Friedman's—focused almost exclusively on market liberalization and was adamant in its opposition to nearly all forms of state interference in the economy. One of the earliest and most influential turns to neoliberal reform occurred in Chile after an economic crisis in

18125-433: The teachings of Islam that is mostly similar to the labour theory of value , which is "labour-based exchange and exchange-based labour". Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a Shari'a compliant manner, i.e., a manner conforming to Islamic scripture ( Quran and sunnah ). Islamic jurisprudence ( fiqh ) has traditionally dealt with determining what

18270-513: The term "neoliberal" as an insult or slur used by leftists against liberals and varieties of liberalism that leftists disagree with. British journalist Will Hutton called neoliberal "an unthinking leftist insult" that "stifle[s] debate." On the other hand, many scholars believe it retains a meaningful definition. Writing in The Guardian , Stephen Metcalf posits that the publication of the 2016 IMF paper "Neoliberalism: Oversold?" helps "put to rest

18415-591: The term entered global circulation and scholarship about it has grown over the last few decades. An early use of the term in English was in 1898 by the French economist Charles Gide to describe the economic beliefs of the Italian economist Maffeo Pantaleoni , with the term néo-libéralisme previously existing in French; the term was later used by others, including the classical liberal economist Milton Friedman in his 1951 essay "Neo-Liberalism and its Prospects". In 1938 at

18560-542: The term to critique trends in Black politics, defining neoliberalism as "the general idea that society works best when the people and the institutions within it work or are shaped to work according to market principles". According to Philip Mirowski , neoliberalism views the market as the greatest information processor, superior to any human being. It is hence considered as the arbiter of truth. Adam Kotsko describes neoliberalism as political theology , as it goes beyond simply being

18705-428: The term] reduces its capacity as an analytic frame. If neoliberalism is to serve as a way of understanding the transformation of society over the last few decades, then the concept is in need of unpacking". Historian Daniel Stedman Jones has similarly said that the term "is too often used as a catch-all shorthand for the horrors associated with globalization and recurring financial crises". Several writers have criticized

18850-451: The theories of economists working with the Mont Pelerin Society , including Friedrich Hayek , Milton Friedman , Ludwig von Mises , and James M. Buchanan , along with politicians and policy-makers such as Margaret Thatcher , Ronald Reagan , and Alan Greenspan . Once the new meaning of neoliberalism became established as common usage among Spanish-speaking scholars, it diffused into the English-language study of political economy . By 1994

18995-478: The theories they had developed in the 1930s and 1940s and contributed to West Germany's reconstruction after the Second World War. Erhard was a member of the Mont Pelerin Society and in constant contact with other neoliberals. He pointed out that he is commonly classified as neoliberal and that he accepted this classification. The ordoliberal Freiburg School was more pragmatic. The German neoliberals accepted

19140-431: The two are closely interrelated, as underlying economic ideology influences the methodology and theory employed in analysis. The diverse ideology and methodology of the 74 Nobel laureates in economics speaks to such interrelation. A good way of discerning whether an ideology can be classified an economic ideology is to ask if it inherently takes a specific and detailed economic standpoint. Furthermore, economic ideology

19285-458: The voluntary group are progressively undermined by extensions of arbitrary power. Even that most precious possession of Western Man, freedom of thought and expression, is threatened by the spread of creeds which, claiming the privilege of tolerance when in the position of a minority, seek only to establish a position of power in which they can suppress and obliterate all views but their own...The group holds that these developments have been fostered by

19430-552: The working class were reduced. In 1982, Chile again experienced a severe economic recession . The cause of this is contested but most scholars believe the Latin American debt crisis —which swept nearly all of Latin America into financial crisis—was a primary cause. Some scholars argue the neoliberal policies of the Chicago boys heightened the crisis (for instance, percent GDP decrease was higher than in any other Latin American country) or even caused it; for instance, some scholars criticize

19575-508: Was a French philosopher . Rougier made many important contributions to epistemology , philosophy of science , political philosophy and the history of Christianity . Rougier was born in Lyon . Debilitated by pleurisy in his youth, he was declared unfit for service in World War I and devoted his adolescence to intellectual pursuits. He studied philosophy under Edmond Goblot . After receiving

19720-434: Was a muddle of inconsistent aims. Despite his controversies with the German neoliberals at the Mont Pelerin Society, Ludwig von Mises stated that Erhard and Müller-Armack accomplished a great act of liberalism to restore the German economy and called this "a lesson for the US". According to different research Mises believed that the ordoliberals were hardly better than socialists. As an answer to Hans Hellwig's complaints about

19865-585: Was at the University of Besançon in 1925, where he served on the faculty until his dismissal in 1948 for political reasons. Further university appointments were in Cairo from 1931 to 1936, the New School for Social Research from 1941 to 1943 and the Université de Montréal in 1945. Rougier's final academic appointment was to the Université de Caen in 1954, but he retired at the age of 66 after only one year there. Under

20010-618: Was carried out on the formerly-Vichy territory by the Allies after the war, as illegal and totalitarian. Finally, Rougier was active in an effort that petitioned the United Nations in 1951 by alleging that the Allies had committed human rights violations and war crimes during the Libération . In the 1970s, Rougier formed a second controversial political alliance: with the Nouvelle Droite of

20155-516: Was developed "to support economic policy reform in the country". De Soto proved to be influential to Fujimori, who began to repeat de Soto's advocacy for deregulating the Peruvian economy. Under Fujimori, de Soto served as "the President's personal representative", with The New York Times describing de Soto as an "overseas salesman", while others dubbed de Soto as the "informal president" for Fujimori. In

20300-412: Was inherently social and did not need to be made so. He hoped that growing prosperity would enable the population to manage much of their social security by self-reliance and end the necessity for a widespread welfare state. By the name of Volkskapitalismus , there were some efforts to foster private savings. Although average contributions to the public old age insurance were quite small, it remained by far

20445-405: Was marked by the willingness to place humanistic and social values on par with economic efficiency. Alfred Müller-Armack coined the phrase "social market economy" to emphasize the egalitarian and humanistic bent of the idea. According to Boas and Gans-Morse, Walter Eucken stated that "social security and social justice are the greatest concerns of our time". Erhard emphasized that the market

20590-526: Was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished. Sociologist Maritza Paredes of the Pontifical Catholic University of Peru stated, "People see that all the natural resources are in the countryside but all the benefits are concentrated in Lima." In 2020,

20735-431: Was put into place, it would become immediately corrupt. Fascism as an economic system promotes the pursuit of individual profit while promoting corporations through government subsidies as the primary tool of economic progress as long as their activities are in line with the goals of the state. In fascist economies, profits or gains are individualized while losses are socialized. These economies are often compared to

20880-563: Was synonymous with both ordoliberalism and social market economy. But over time the original term neoliberalism gradually disappeared since social market economy was a much more positive term and fit better into the Wirtschaftswunder (economic miracle) mentality of the 1950s and 1960s. In the 1980s, numerous governments in Latin America adopted neoliberal policies. Chile was among the earliest nations to implement neoliberal reform. Marxist economic geographer David Harvey has described

21025-434: Was to create a closed economic system which is self-reliant, but is also ready and prepared to engage in war and territorial expansion. Fascist economies can then be seen as state capitalist. Socialism is any of the various ideologies of economic organization based on some form of social ownership of the means of production and cooperative management of the allocation of resources. Socialist systems can be distinguished by

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