At a glance
Neoliberalism describes a disputed family of approaches that prioritizes market competition, private enterprise and institutions designed to sustain a market-oriented economic order.
Core principles
- Competitive markets; private ownership; trade openness; monetary stability; limits on discretionary economic management; market-based public-policy instruments.
Origins & development
Twentieth-century thinkers reworked liberal economics in response to planning and economic crisis. The term later became associated with privatization, deregulation and policy reforms.
Economic outlook
Common policies include market liberalization, private investment and reduced barriers to capital and trade. Many versions require an active state to establish and enforce competition.
Society & government
It can coexist with constitutional democracy and selected social insurance. Critics examine how market rules and independent institutions constrain elected governments’ policy choices.
Variations & related traditions
Ordoliberal, Hayekian and other market-liberal approaches differ. The term is often used critically and should not be treated as a precise description of every market reform.
Debates & criticisms
Debates concern inequality, public-service quality, financial instability and democratic accountability. It differs from pure laissez-faire because market institutions may require substantial state construction.