Liberal TheoryBasic Tenets of Liberal TheorySlide 3Slide 4Slide 5Slide 6Slide 7Globalization & Neo-liberalismSlide 9North American Free Trade Agreement (NAFTA)Liberal TheoryNeo-liberalism underpins globalizationNeo-liberalism underpins globalizationNeo-liberalism-- roots in historical struggle Neo-liberalism-- roots in historical struggle between classical liberalism and modern between classical liberalism and modern liberalism.liberalism.Classical liberalism grows out the Classical liberalism grows out the Enlightenment period (17Enlightenment period (17thth & 18 & 18thth c.) c.)Basic Tenets of Liberal TheoryIndividual Rights (including property)Individual Rights (including property)Freedom of choice; freedom from confining Freedom of choice; freedom from confining embraces of other persons or institutions.embraces of other persons or institutions.Critique of religionCritique of religionValues science/reason over religionValues science/reason over religionCommitment to social progress/changeCommitment to social progress/changeScience/reason as a basis for social changeScience/reason as a basis for social changeEmbraces achievement over ascription Embraces achievement over ascription Social position should be based on merit not Social position should be based on merit not birth (critiques idea of biological superiority)birth (critiques idea of biological superiority)Basic tenets cover three dimensions of freedom:Basic tenets cover three dimensions of freedom:Economic freedomEconomic freedomPolitical freedomPolitical freedomReligious freedomReligious freedomThree Stages of LiberalismThree Stages of Liberalism1.1.Classical Liberalism:Classical Liberalism:Revolt of growing middle classes against Revolt of growing middle classes against mercantilism (government control of mercantilism (government control of commerce & industry) and rule of nobility.commerce & industry) and rule of nobility.Adam Smith: Free market ideology (no Adam Smith: Free market ideology (no government interference)government interference)2. 2. Modern Liberalism (20Modern Liberalism (20thth century): century): A response to the problems of classical liberalism.A response to the problems of classical liberalism.Under classical liberalism:Under classical liberalism:Economic power concentrated in the hands of a few.Economic power concentrated in the hands of a few.Economic elite exercised control over governments.Economic elite exercised control over governments.Large populations of poor; urban crowding; Large populations of poor; urban crowding; Modern liberalism allowed limited government Modern liberalism allowed limited government interference (regulations, social security) in order to interference (regulations, social security) in order to protect the liberty of individuals.protect the liberty of individuals.Government programs to equalize opportunity (civil Government programs to equalize opportunity (civil rights)rights)3.3.Neo-liberalism (1980s & 90s)Neo-liberalism (1980s & 90s)A shift back to classical liberalism—A shift back to classical liberalism—hands off.hands off.Limited government regulationLimited government regulationCuts to social safety netCuts to social safety netArguments against governments hand in Arguments against governments hand in equalizing playing field.equalizing playing field.In what specific ways is neo-liberalism In what specific ways is neo-liberalism reflected in the overview of globalization reflected in the overview of globalization presented by Schaeffer?presented by Schaeffer?Globalization & Neo-liberalismLiberalization of trade and investment.Liberalization of trade and investment.Trade liberalization is accomplished by the:Trade liberalization is accomplished by the:removal of tariffs (a tax levied on goods as they removal of tariffs (a tax levied on goods as they cross national boundaries).cross national boundaries).Promotion of “democratically elected” Promotion of “democratically elected” governments.governments.Note: Tariffs are also called:Note: Tariffs are also called:DutyDutyCustomsCustomsNorth American Free Trade Agreement (NAFTA)A trade pact that aims to integrate the economies of the A trade pact that aims to integrate the economies of the U.S., Canada, and Mexico.U.S., Canada, and Mexico.Signed by leaders of U.S., Canada, and Mexico in 1992Signed by leaders of U.S., Canada, and Mexico in 1992Ratified by each countries national legislature in 1993Ratified by each countries national legislature in 1993Went into effect on January 1, 1994Went into effect on January 1, 1994Key goal of NAFTA—eliminate trade barriers, especially Key goal of NAFTA—eliminate trade barriers, especially tariffs and environmental and labor regulations in Mexico tariffs and environmental and labor regulations in Mexico and Canada).and