Q.6 Explain the concept of Economics Liberalism and relate its core interests with the concept of Neo-imperialism or creating Economic Dependency. 2018
Economic liberalism is an economic philosophy that emphasizes free markets, private enterprise, and minimal government intervention in the economy. It is based on the belief that economic freedom leads to greater efficiency, innovation, and economic growth, and that individuals and businesses should be free to make their own economic decisions without interference from the state.
However, some critics argue that economic liberalism can lead to neo-imperialism or the creation of economic dependency in developing countries. Neo-imperialism refers to a situation in which a powerful state or group of states uses economic leverage to dominate weaker countries, often through the establishment of unequal economic relationships that benefit the more powerful state or group.
In the context of economic liberalism, neo-imperialism can arise when powerful countries use their economic power to impose their own economic models on weaker countries, often to the detriment of the latter’s own economic development. This can take the form of trade agreements that favor the interests of the more powerful country, foreign investment that benefits only a narrow elite in the weaker country, or structural adjustment programs that impose austerity measures and economic reforms on developing countries in exchange for loans and other forms of assistance.
These policies can create economic dependency on the more powerful country, making it difficult for the weaker country to develop its own domestic industries and achieve sustainable economic growth. In some cases, this can lead to a cycle of debt and underdevelopment, as weaker countries are forced to borrow money from more powerful countries or international institutions on unfavorable terms.
Overall, while economic liberalism can lead to greater economic growth and development, critics argue that it can also contribute to the creation of economic dependency and neo-imperialism in developing countries, particularly if policies are implemented in a way that favors the interests of the more powerful countries or groups.
