2.1 Classical liberalism
7 min read•august 20, 2024
emerged in the 17th and 18th centuries as a response to political and economic changes. It critiqued absolutist states and mercantilist policies, advocating for individual rights, , and .
This foundational theory emphasized individual freedom, , and . Key thinkers like Locke, Smith, and Kant developed ideas that shaped modern liberal approaches to international relations and global politics.
Origins of classical liberalism
- Classical liberalism emerged in the 17th and 18th centuries as a response to the political and economic changes brought about by the and the Industrial Revolution
- It developed as a critique of the absolutist state and mercantilist economic policies, advocating for individual rights, limited government, and free markets
- Classical liberalism laid the foundation for modern liberal theories of international relations, emphasizing the importance of individual freedom, economic interdependence, and international cooperation
Key thinkers in classical liberalism
John Locke's natural rights
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- Locke argued that individuals have to life, liberty, and property, which exist independently of government and cannot be taken away without consent
- He believed that the primary purpose of government is to protect these rights and that citizens have the right to revolt against a government that fails to do so
- Locke's ideas about natural rights and the social contract had a significant influence on the development of liberal political thought and the American and French Revolutions
Adam Smith's economic liberalism
- Smith is considered the father of modern economics and a key figure in the development of classical liberal economic thought
- In his seminal work, "," Smith argued that free markets, driven by individual self-interest and competition, would lead to greater prosperity and efficiency than government intervention
- He advocated for the division of labor, free trade, and limited government regulation of the economy, which became core principles of classical liberal economics
Immanuel Kant's perpetual peace
- Kant's essay "Perpetual Peace" is a foundational text in liberal international relations theory
- He argued that lasting peace could be achieved through the spread of republican governments, international law, and free trade among nations
- Kant believed that as more countries adopted liberal principles and became economically interdependent, the likelihood of war would decrease, leading to a "federation of free states" and eventual world peace
Core tenets of classical liberalism
Individual liberty and freedom
- Classical liberalism places a strong emphasis on individual freedom and autonomy, arguing that individuals should be free to pursue their own interests and goals without interference from the state or others
- This includes freedoms such as freedom of speech, religion, and association, as well as economic freedoms like the right to own property and engage in voluntary exchange
- Classical liberals believe that protecting is essential for human flourishing and social progress
Limited role of government
- Classical liberalism advocates for a limited government that is primarily responsible for protecting individual rights and maintaining social order
- It opposes excessive government intervention in the economy and society, arguing that it can lead to inefficiency, corruption, and the erosion of individual freedom
- Classical liberals believe that the government should be constrained by the and a system of checks and balances to prevent abuse of power
Free markets and trade
- Classical liberalism champions free markets and trade as the most efficient and equitable means of allocating resources and promoting economic growth
- It argues that individuals should be free to engage in voluntary exchange and that prices should be determined by supply and demand rather than government regulation
- Classical liberals believe that free trade among nations can promote peace and prosperity by fostering economic interdependence and cultural exchange
Private property rights
- Classical liberalism places a strong emphasis on the protection of as a foundation for individual liberty and economic prosperity
- It argues that individuals have a natural right to own and control their own property, and that this right should be protected by the government
- Classical liberals believe that secure property rights incentivize investment, innovation, and responsible stewardship of resources
Classical liberalism in international relations
Spread of liberal values globally
- Classical liberal thinkers believed that the spread of liberal values such as individual freedom, democracy, and free markets would lead to greater peace and prosperity among nations
- They argued that as more countries adopted liberal principles, they would become more alike in their values and interests, reducing the likelihood of conflict
- Classical liberals supported the spread of liberal ideas through diplomacy, trade, and cultural exchange, rather than military force or coercion
Rise of international institutions
- Classical liberals advocated for the creation of international institutions and legal frameworks to promote cooperation and resolve disputes among nations
- They believed that institutions such as the League of Nations (and later the United Nations) could provide a forum for peaceful negotiation and collective action to address global challenges
- Classical liberals also supported the development of international law and norms to regulate state behavior and protect individual rights across borders
Promotion of democracy abroad
- Classical liberals believed that the spread of democracy was essential for promoting peace and protecting individual rights in the international system
- They argued that democratic governments were more likely to respect the rights of their citizens and to resolve conflicts peacefully than authoritarian regimes
- Classical liberals supported efforts to promote democracy abroad through diplomacy, foreign aid, and support for civil society organizations
Economic interdependence vs conflict
- Classical liberals believed that increasing economic interdependence among nations would reduce the likelihood of war by raising the costs and lowering the benefits of conflict
- They argued that as countries became more reliant on trade and investment with each other, they would have a greater stake in maintaining peace and stability
- Classical liberals supported free trade agreements and the lowering of trade barriers as a means of promoting economic integration and reducing the risk of conflict
Critiques of classical liberalism
Ignoring power imbalances
- Critics argue that classical liberalism fails to adequately address power imbalances among individuals and states, assuming a level playing field that does not exist in reality
- They argue that the emphasis on individual freedom and limited government can lead to the concentration of wealth and power in the hands of a few, exacerbating inequality and social conflict
- Critics also argue that classical liberalism's focus on negative rights (freedom from interference) neglects the importance of positive rights (access to resources and opportunities) in promoting social justice
Eurocentrism and colonialism
- Critics argue that classical liberalism is rooted in Eurocentric assumptions and values that have been used to justify colonialism and imperialism
- They point out that many classical liberal thinkers (Locke, Mill) were complicit in or actively supported colonial projects, seeing them as a means of spreading "civilization" and liberal values
- Critics argue that the universalist claims of classical liberalism mask the ways in which it has been used to impose Western norms and interests on non-Western societies
Challenges to state sovereignty
- Critics argue that classical liberalism's emphasis on individual rights and international institutions challenges traditional notions of state sovereignty and can lead to outside interference in domestic affairs
- They point out that the promotion of democracy and human rights abroad can be used as a pretext for military intervention and regime change by powerful states
- Critics also argue that the rise of transnational actors and global governance institutions can undermine the ability of states to control their own economic and social policies
Unequal benefits of free trade
- Critics argue that the benefits of free trade and economic liberalization are often distributed unequally, both within and between countries
- They point out that while free trade can create economic growth and efficiency, it can also lead to job losses, declining wages, and the erosion of social protections for workers
- Critics argue that the rules and institutions governing international trade (WTO, IMF) often favor the interests of wealthy countries and multinational corporations over those of developing countries and local communities
Legacy of classical liberalism
Influence on modern liberalism
- Classical liberalism laid the foundation for modern liberal theories of politics and international relations, which continue to emphasize individual rights, democratic governance, and international cooperation
- However, modern liberals have also sought to address some of the limitations and critiques of classical liberalism, such as the need for greater social welfare provisions and the recognition of group rights and identity politics
- Modern liberal theories (neoliberalism, social liberalism) have adapted classical liberal principles to changing social and economic conditions, while retaining a core commitment to individual freedom and limited government
Foundation for neoliberal ideology
- Classical liberalism's emphasis on free markets, limited government, and individual responsibility has been a major influence on neoliberal economic policies since the 1970s
- Neoliberalism has sought to extend market principles to all areas of social and political life, advocating for privatization, deregulation, and the rollback of the welfare state
- Critics argue that neoliberalism has exacerbated economic inequality, eroded social protections, and undermined democratic accountability, while proponents see it as necessary for economic growth and efficiency
Relevance in contemporary global politics
- Classical liberal ideas continue to shape debates about globalization, trade, human rights, and the role of international institutions in contemporary world politics
- The tensions between national sovereignty and international cooperation, between economic efficiency and social justice, and between individual freedom and collective responsibility that were central to classical liberalism remain relevant today
- As the world becomes more interconnected and complex, the challenge for liberals is to adapt and apply classical liberal principles in ways that address the needs and aspirations of diverse societies while promoting peace, prosperity, and human dignity for all
Key Terms to Review (26)
Adam Smith: Adam Smith was an 18th-century Scottish economist and philosopher, best known for his influential works 'The Wealth of Nations' and 'The Theory of Moral Sentiments'. He is often referred to as the father of modern economics and a foundational figure in classical liberalism, advocating for free markets and individual self-interest as driving forces behind economic prosperity. His ideas have profoundly shaped both economic liberalism and the broader framework of political economy.
American Revolution: The American Revolution was a colonial revolt against British rule from 1765 to 1783 that led to the establishment of the United States of America. This conflict emerged as the American colonies sought independence, driven by Enlightenment ideas emphasizing individual rights and government by consent, which are core principles of classical liberalism.
Capitalism: Capitalism is an economic system where private individuals or businesses own capital goods and are responsible for their production, distribution, and exchange. This system is characterized by the principles of free market competition, investment, profit motive, and limited government intervention in the economy. Capitalism is deeply connected to concepts of individual freedom, economic growth, and social inequality, making it a focal point in discussions about political ideologies and global economic structures.
Classical liberalism: Classical liberalism is a political ideology that emphasizes individual freedom, limited government, and the protection of private property. It promotes the idea that a free market and civil liberties are essential for human flourishing and progress. The theory roots itself in Enlightenment principles, advocating for rationality and reason as the foundation of society and governance.
Commercial Peace Theory: Commercial peace theory posits that countries engaged in significant economic trade with one another are less likely to go to war, as the mutual benefits of commerce create interdependence and incentivize peaceful relations. This theory suggests that the more economically intertwined nations become, the greater the likelihood they will maintain peace to protect their shared interests. It emphasizes the idea that economic ties can serve as a stabilizing force in international relations.
Democratic peace theory: Democratic peace theory suggests that democracies are less likely to engage in armed conflict with one another compared to non-democratic regimes. This theory is rooted in the idea that democratic nations share similar political structures and values, leading to more peaceful international relations. The theory also connects to broader concepts of governance and civil society, indicating that democratic norms can influence foreign policy and reduce the likelihood of war.
Economic interdependence: Economic interdependence refers to the mutual reliance between countries or economies, where they depend on each other for goods, services, and resources. This concept highlights how nations are increasingly connected through trade, investment, and global supply chains, which can promote peace and cooperation but also create vulnerabilities. The intricacies of economic interdependence can be understood through the lens of global governance, the promotion of free markets, and the dynamics of power among states.
Enlightenment: The Enlightenment was an intellectual and philosophical movement that emerged in Europe during the 17th and 18th centuries, emphasizing reason, individualism, and skepticism of traditional authority. It advocated for the application of rational thought to all aspects of life, including politics, society, and education, fostering ideas that would later influence classical liberalism and democratic governance.
Free Markets: Free markets are economic systems where prices for goods and services are determined by open competition among private businesses, without government intervention. This concept is central to classical liberalism, which emphasizes individual freedom and minimal state involvement in the economy, allowing supply and demand to dictate market dynamics and fostering innovation and consumer choice.
Immanuel Kant: Immanuel Kant was an influential German philosopher known for his work in ethics, metaphysics, and epistemology, particularly during the Enlightenment. His ideas contributed significantly to liberal thought, emphasizing reason, individual rights, and the moral duty of states and individuals in promoting peace and cooperation among nations. Kant's philosophies laid the groundwork for later theories regarding democracy, international relations, and global citizenship.
Individual Liberty: Individual liberty refers to the natural rights and freedoms that each person possesses, which allow them to act according to their own will, as long as their actions do not infringe on the rights of others. This concept is a foundational element of classical liberalism, emphasizing the importance of personal autonomy and limited government intervention in the lives of citizens. Individual liberty underpins many political and economic theories, advocating for the protection of civil rights and freedoms within a democratic society.
International Cooperation: International cooperation refers to the collaborative efforts of countries and organizations to work together towards common goals, addressing global challenges through dialogue, treaties, and joint initiatives. This process is crucial for managing transnational issues like climate change, trade, security, and public health, and it emphasizes the importance of collective action in a world marked by interdependence.
International organizations: International organizations are entities created by multiple countries to work together on common goals, manage global issues, and facilitate cooperation. They play a crucial role in the international system by promoting peace, security, and development through frameworks of rules, norms, and shared practices. These organizations can be intergovernmental, like the United Nations, or non-governmental, like Amnesty International, and often reflect the principles of cooperation and mutual benefit emphasized in various theories of international relations.
John Locke: John Locke was a 17th-century English philosopher whose ideas laid the groundwork for modern liberal democracy and significantly influenced classical liberalism. He is best known for his theories on natural rights, government by consent, and the social contract, asserting that individuals possess inherent rights to life, liberty, and property. Locke's philosophy emphasizes individual autonomy and the importance of limiting governmental power to protect these rights.
Limited Government: Limited government is a political principle that restricts the powers of government to protect individual liberties and prevent tyranny. This concept promotes the idea that governmental authority should be confined within predetermined boundaries, ensuring that citizens have rights that cannot be infringed upon by the state. Limited government is closely associated with ideas of individual freedom, the rule of law, and checks and balances, which aim to create a framework for democratic governance.
Marxism: Marxism is a social, political, and economic theory originated by Karl Marx and Friedrich Engels that critiques capitalism and advocates for a classless society. It emphasizes the struggle between the proletariat (working class) and the bourgeoisie (capitalist class), arguing that this conflict will ultimately lead to the overthrow of capitalism and the establishment of socialism. The theory also suggests that material conditions shape societal structures and consciousness.
Natural rights: Natural rights are fundamental human rights that individuals possess inherently, simply by being human. These rights are often seen as universal and unalienable, meaning they cannot be taken away or denied. They form the foundation of classical liberal thought, emphasizing individual freedom and the protection of personal liberties against infringement by authorities or society.
Private Property Rights: Private property rights are legal rights that allow individuals or entities to own, use, and control their property, including land and goods. These rights are essential in classical liberalism as they form the basis for individual freedom, economic efficiency, and voluntary exchange. The protection of private property is viewed as crucial for encouraging investment, innovation, and economic growth within a society.
Promotion of democracy abroad: The promotion of democracy abroad refers to efforts by governments, international organizations, or non-governmental organizations to encourage democratic governance in other countries. This concept emphasizes the belief that democratic systems can lead to greater political stability, economic growth, and respect for human rights, fostering a global environment that is conducive to peace and security.
Realism: Realism is a theoretical framework in international relations that emphasizes the competitive and conflictual nature of international politics. It argues that states are the primary actors in an anarchic international system, where each state acts in its own self-interest to ensure survival and power. This perspective underscores the importance of military capability, national interest, and power dynamics in shaping global interactions.
Rise of International Institutions: The rise of international institutions refers to the increasing establishment and influence of organizations that facilitate cooperation among states and manage global issues. This trend is closely linked to the belief that multilateral cooperation can help solve problems such as conflict, trade, and environmental challenges, thus promoting peace and stability in the international system.
Rule of Law: The rule of law is a principle that asserts that all individuals and institutions, including the government, are accountable to the law, which is applied fairly and consistently. It emphasizes that laws should govern a nation, as opposed to arbitrary decisions by individual government officials. This concept is closely tied to notions of justice, individual rights, and democratic governance.
Spread of liberal values globally: The spread of liberal values globally refers to the process through which principles such as democracy, individual rights, free markets, and the rule of law are promoted and adopted across different nations and cultures. This phenomenon is often linked to globalization, where communication and trade have facilitated the exchange of ideas, fostering an environment where liberal ideologies can flourish. The global diffusion of these values aims to create a more interconnected world that prioritizes human rights and economic freedom.
The Wealth of Nations: The Wealth of Nations is a foundational text in economics written by Adam Smith, published in 1776, which explores how nations can achieve economic prosperity through free markets and division of labor. This work laid the groundwork for classical liberalism, emphasizing the importance of individual self-interest, minimal government intervention, and the benefits of trade and competition in promoting overall wealth.
Trade liberalization: Trade liberalization refers to the reduction or elimination of trade barriers, such as tariffs and quotas, to facilitate the free exchange of goods and services between countries. This concept is rooted in the belief that open markets enhance economic efficiency, promote competition, and increase consumer choice. By advocating for fewer restrictions on international trade, it aligns with principles of both classical liberalism and economic liberalism, emphasizing the importance of individual freedoms and the role of markets in driving economic growth.
Two Treatises of Government: The Two Treatises of Government is a political work by John Locke, published in 1689, that outlines his ideas on natural rights, government, and the social contract. The first treatise critiques the concept of divine right monarchy, while the second treatise lays the foundation for modern democratic principles, advocating for individual liberty and government by consent.