POLITICAL ECONOMY IDEOLOGIES AND APPROACH TO THE WORLD 7
PoliticalEconomy Ideologies and Approach to the World
PoliticalIdeologies and Approach to the World
Ideologiesof political economy are adopted and manifested by countries throughthe implementation of certain economic policies that define them.These are some of the ideologies that guide national policy anddecision making that drive the economy of a country. While theseideologies differ from country to country, their applicationdetermines the economic performance of these nations. This discussionlooks into three political ideologies, economic liberalism, economicnationalism and economic radicalism with a view of relating to one ofthem. Therefore, this paper seeks to explore economic liberalism asthe ideology that most appropriately corresponds to my thinking ofthe world due to the major ideas experienced.
Economicliberalism is an ideology that creates a belief that the economyshould be organized based on the economic decisions of individualmicroeconomic units. The ideology promotes liberalization of maineconomic decisions and activities of an economy. On the other hand,economic nationalism constitutes of policies that promote domesticcontrol of an economy. This ideology promotes the use of labor,capital and other factors of production for domestic benefits. Thisis implemented through the use of economic policies such as fiscalguidelines that insist on domestic control of the economy (Adams,2001). However, economicradicalism is an ideology that promotes the adoption ofunconventional and rather unorthodox economic policies to organizethe economy.
Comparedto the other two, economic liberalism creates an environment whereeach of the economic units is able to operate independently andpromote competition. This is because economic units rely on their owndecisions and competitively align with the market forces of demandand supply (Levi,2014). Economic radicalismpromotes the adoption of policies that are not considerate of thebenefits of liberal economic units. Similarly, economic nationalismassumes that an economy does not require the input of other economiesthrough foreign trade and foreign factors of production. This makeseconomic liberalism a more dynamic ideology for a modern economy.
Economicliberalism most corresponds to the idea of a world where the factorsof production are mainly controlled by individual economic units. Theownership of the factors of production such as land and labordetermines the level of control that individuals can have in terms ofproduction in the economy. This ownership is normally debated on whoshould control them with different countries taking differentpolicies based on the political ideology that controls the country(Adams,2001). Through the use of thefactors of production is more efficient in a liberalized economywhere individuals have a higher control over the resources. Thisliberalization is created by the adoption of policies that areinspired by the ideology of economic liberalism.
Thethinking and approach of a world as a large economic environmentwhere countries trade with each other based on competitive andcomparative advantages. The development of international trade tobenefit the economies across the world is based on the level ofliberalization in each of the economies (Levi,2014). However, most economies donot reap the benefits of international trade due to the adoption ofinappropriate political ideologies such as economic radicalism andeconomic nationalism. Economic liberalism is the ideology thatcorresponds to the approach of world trade. This is because theideology promotes the liberalization of the control of trade byallowing individuals to trade freely. Through the adoption of liberaleconomic policies, governments are able to promote trade betweenthemselves by letting citizens gain the benefits of internationaltrade relations.
Economicliberalism relates better to the modern economy that is rapidlydeveloping with innovation a significant aspect of economic andbusiness environment. The thinking of the world as a developmentenvironment makes it possible for the linkage between the benefits ofeconomic liberalism and modernity. The modern world is turning into atechnological environment full of continuous innovation, whichrequires the right environment for the developer to translate intoeconomic advantages. The ideology of economic liberalism provides thenecessary independence that promotes innovation through a liberalenvironment (Levi,2014). This corresponds to thethinking that for the world to advance even further, individuals andbusinesses should be allowed to innovate and create productsindependently without stringent control over their decision making.Therefore, economic liberalism is the most appropriate and mostresponsive ideology for this type of the world.
Theeconomic approach of viewing a world as an environment controlled bythe forces of demand and supply is best described by liberalization.This is because economic liberalization is the main policy thatallows the forces of demand and supply to drive the market. Accordingto Levi(2014), the determination of themarket price through the forces of demand and supply makes it liberalfor the economic units in a country to independently determine theireconomic outcomes. This makes it necessary for a country to adopt anideology that promotes the freedom of the market to rely on demandand supply as the price mechanism (Adams,2001). In addition, a countryshould adopt a policy that does not limit the level of reliance ofthese forces to control trade in the country, both local and foreign.As a result, economic liberalism becomes the ideology thatcorresponds most to this approach of market liberalization.
Similarly,the liberalization of an economy is based on the freedom thateconomic units have when distributing resources during production. Anefficient approach to the economic world in terms of production isthat which allows individuals to competitively allocate economicresources among themselves through demand and supply forces (Levi,2014). This is best achieved whena country implements policies that are based on the politicalideology of economic liberalism. The effectiveness of the productionprocess is based on the allocation of labor and capital as the mainfactors of production. In this regard, the ideology of economicliberalism allows the forces of demand and supply to settle theprices at the labor and capital markets, thereby promotingefficiency.
Whiledifferent political ideologies lead to different economic outcomes,there are ideologies that most corresponds to certain approaches andviews about the world. In this regard, the adoption of economicliberalism corresponds to my approach of a free economic world and ahighly liberalized trading environment. This is because economicliberalism promotes liberalization of markets through the use of theforces of demand and supply. At the same time, economic liberalismpromotes efficiency in the use economic resources through competitiveallocation and freedom of economic units to use the factors ofproduction for economic benefits. Moreover, economic liberalism bestcorresponds with the new world outlook of innovation because theworld is highly inclined in technological development. This makeseconomic liberalism the political ideology that corresponds mostclosely to the stated thinking and approach to the world.
Adams,I. (2001). PoliticalIdeology Today. Manchester:Manchester University Press
Levi,M. (2014). TheMacroeconomic Environment of Business (Core Concepts and CuriousConnections).New Jersey, USA: World Scientific Publishing