Question

" In the economic sphere liberalism stood for the freedom of market and abolition of state imposed restrictions on the movement of goods and capital ." Explain.

Answer 1

Liberal nationalism, also known as civic nationalism or civil nationalism. Liberalism derived from the Latin word liber which means free . For middleclass people liberalism stood for freedom for individual and equality before law . Politically, it emphasised the concept of government by consent.Since french revolution liberalism stood for end of clerical and aristocratic privilages ,a constitution and representative government through parliament . In economic sphere liberalism stood for freedom of markets and abolishment of state imposed restriction on movement of goods and capital.

Answer 2

Answer:

The word ‘liberalism’ derives from the Latin word liber, meaning free. For the new middle classes-

Social liberalism stood for freedom for the individual and equality of all before the law.

In the economic sphere, liberalism stood for the freedom of markets and the abolition of

state-imposed restrictions on the movement of goods and capital

Politically, it emphasised the concept of government by consent.

Since the French Revolution, liberalism had stood for the end of autocracy and clerical

privileges, a constitution and representative government through parliament. Nineteenth-century

liberals also stressed the inviolability of private property.

Explanation:

Structural reforms which included liberalized trade and investment policies with

emphasis on exports, industrial deregulation, disinvestment and public sector reforms,

and reform of the capital markets and the financial sector.

The economic reforms, have led to considerable liberalization and freeing of international

trade, and to some replacement of what used to be called the ‘Licence Raj’ (with pervasive

bureaucratic control over private economic initiatives).

This has greatly added to business opportunities in India and has also helped to consolidate India’s faster

economic growth.

Liberalization has helped to free Indian entrepreneurs to seek global trade, and the success has been especially large in specific sectors such as information technology.

The adoption of the NEP (New Economic Policy) based on liberalization and privatization

has given rise to a debate on the nature of the link between state and market.

The NEP does not imply a retreat of the state. The state and the market are not

substitutes for one another, but they complement each other. Further, these two actors

provide mutual checks and balances in such a way that one can correct the failures of

the other. The state needs to formulate policies to bring about improved transparency

and greater accountability, which forms the basic pillars of good governance.