neoliberalism differs from classic liberalism

Neoliberalism is an economic theory which proclaims freedom of personal initiative of businesses and guarantees the satisfaction of all needs with minimum costs.The main conditions of the market system, this theory recognized the existence of private property, free enterprise and free competition.This has been presented for several schools, including the London School of Hayek, Friedman and the Chicago School fraysburgskaya school Eucken.

Unlike classical liberalism, this trend does not deny the economic regulation by the state, but its scope of regulation should be to guarantee a free market and unrestricted competition, which is to ensure social justice and economic growth.Neoliberalism is similar in its principles of globaliz
ation in the economic sphere.

The main idea is to support the neo-liberal protectionism.The political justification for governments associated with defending the interests of dissemination of advanced technologies, while not losing control of the business, which in the end leads to an increase in corruption and interventionist law.Some of the principles of neo-liberalism as the basis for the functioning of the World Bank, the World Trade Organization and International Monetary Fund.

Basic principles of neoliberalism

In 1938, at a conference in Paris, the representatives of this movement voiced the basic principles of the theory.In accordance with these principles, the market is the most effective form of economic freedom and independence of economic actors are fundamental to the efficiency and growth of the economy, the competition was to find support from the state, and freedom of personal initiative in the economic framework should be guaranteed by law.

However, some well-known writers such as Mario Vargas Llosa, are inclined to believe that the self-flow "neoliberalism" is not, and it's just coined the term, exists only for the depreciation of the theory of liberalism.Critics say this disastrous policy in matters of social justice, especially the policy of neo-liberalism has failed in Argentina, eastern Europe, Asia and North Africa.