Term Definition

Henro Kruger

Neo-liberalism refers to economic liberalism and seeks policies and procedures to transfer the control of the economy from the public to private sector. State interventions must be kept to the minimum. This approach proposes that civil society can benefit most by liberating individual freedom and skills within an environment characterized by strong private property rights, free markets and free trade. The role of the state must be a minor one. It has to guarantee the integrity and quality of money and put up structures to secure and guarantee property rights. If markets do not exist, it must, if necessary, be created by state action. The state should not venture beyond these tasks. Free markets and trade will set free creative potential and entrepreneurial spirit and thereby lead to more efficient allocation of resources, more liberty and more well-being.

Compiled and edited by Dr. Stefan Melnik, a senior advisor to the Friedrich Naumann Foundation as well as political communication trainer, editor and author of many books on liberalism. Names of outside contributors are respectively mentioned under the terms.

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