1. Liberal Theory Neo-liberalism underpins globalization  Neo-liberalism-- roots in historical struggle between classical liberalism and modern liberalism.  Classical liberalism grows out the Enlightenment period (17 th & 18 th c.)

2. Basic Tenets of Liberal Theory  Individual Rights (including property)  Freedom of choice; freedom from confining embraces of other persons or institutions.  Critique of religion  Values science/reason over religion  Commitment to social progress/change  Science/reason as a basis for social change  Embraces achievement over ascription  Social position should be based on merit not birth (critiques idea of biological superiority)

3. Basic tenets cover three dimensions of freedom: Basic tenets cover three dimensions of freedom:  Economic freedom  Political freedom  Religious freedom

4. Three Stages of Liberalism 1.Classical Liberalism: 1.Classical Liberalism:  Revolt of growing middle classes against mercantilism (government control of commerce & industry) and rule of nobility.  Adam Smith: Free market ideology (no government interference)

5. 2. Modern Liberalism (20 th century): 2. Modern Liberalism (20 th century):  A response to the problems of classical liberalism. Under classical liberalism: Under classical liberalism:  Economic power concentrated in the hands of a few.  Economic elite exercised control over governments.  Large populations of poor; urban crowding;  Modern liberalism allowed limited government interference (regulations, social security) in order to protect the liberty of individuals.  Government programs to equalize opportunity (civil rights)

6. 3.Neo-liberalism (1980s & 90s) 3.Neo-liberalism (1980s & 90s)  A shift back to classical liberalism— hands off.  Limited government regulation  Cuts to social safety net  Arguments against governments hand in equalizing playing field.

7. In what specific ways is neo-liberalism reflected in the overview of globalization presented by Schaeffer? In what specific ways is neo-liberalism reflected in the overview of globalization presented by Schaeffer?

8. 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 cross national boundaries). Promotion of “democratically elected” governments. Promotion of “democratically elected” governments.

9. Note: Tariffs are also called: Note: Tariffs are also called:  Duty  Customs

10. North American Free Trade Agreement (NAFTA) A trade pact that aims to integrate the economies of the U.S., Canada, and Mexico. A trade pact that aims to integrate the economies of the U.S., Canada, and Mexico. Signed by leaders of U.S., Canada, and Mexico in 1992 Signed by leaders of U.S., Canada, and Mexico in 1992 Ratified by each countries national legislature in 1993 Ratified by each countries national legislature in 1993 Went into effect on January 1, 1994 Went into effect on January 1, 1994 Key goal of NAFTA—eliminate trade barriers, especially tariffs and environmental and labor regulations in Mexico and Canada). Key goal of NAFTA—eliminate trade barriers, especially tariffs and environmental and labor regulations in Mexico and Canada).