Question

Explain neoliberalism and discuss some of the ways in which neoliberalism became a major political and economic doctrine and an instrument for shaping public policy in the canadian context?

Answer 1

Neoliberalism is an extended form of liberalism which favours free market capitalism. Essentially it is against the protection of groups or state interventions which impose tariffs and restrictions. It focuses on eliminating price controls, deregulation of markets, reducing trade barriers, state power in the economy, and promoting privatization.

In the canadian context, neoliberalism became a major political and economic doctrine wherein it adopted free trade and increased political and economic relations such as between Canada and US through the formation of NAFTA (North American free trade agreement). This strengthened the relations between the two countries and led to significant economic output gains and cooperation, free flow of capital and increased movement of the workforce between the two countries.

Neoliberalism proved beneficial for economic growth which is why Canada started to frame public policies keeping this view in mind so as to enhance economic growth further and increase prosperity. Thus it also signed trade partnerships with European Union and several other key regions. Politicians increasingly tried to reflect such sentiments and win votes. Increase in economic profits and politicians need to enhance the profits further in order to please the population led to minimal state control and extensive privatization which proved beneficial for some sectors but not for others such as homeless and welfare activities and those public sectors which required government spending to boost them.