In: Economics
Think about these three major ideas of the Enlightenment: 1) Political - Locke and Rousseau -Government by contract between the people and the rulers and popular sovereignty – i.e. inviolable constitutions are contracts and 2) Economic - Adam Smith – freedom to pursue individual economic self-interests benefits all of society – i.e. free-market capitalism. 3) Social - Jefferson - All people created equal and freedom is a natural right. Remember that these ideas (three key premises of 19th century liberalism dating to the Enlightenment) share the stage with nationalism, imperialism, and industrialization.
Remember that LIBERALISM is the most direct descendant of the ideas of the Enlightenment.
Answer the following questions for the 1800s: (If you have examined and completed the notes, you will not have a problem answering these questions.)
Generally, considering the liberal reform efforts of 1) western Europe, 2) the US, 3) Canada, 4) Latin America, 5) the Ottoman Empire, 6) Russia, 7) China, 8) Japan, and 9) Africa, think about which nations/regions were able to implement real and long-lasting political, social, and economic reform during the1800s based on the ideas of Locke, Rousseau, and Smith as described above?
Answer the following:
1) Name one country/region (from the list above) that successfully established REAL and LASTING liberal reforms (not just on paper). ______________________ (Think results) 10pts.
2) In one sentence, provide one example OF THIS SUCCESS to justify your answer. Be specific. (They did good things for the people is not a specific answer..... Who did? What people? What good did they do politically, socially, or economically...?) 40pts.
3) Name one country/region (from the list above) that failed to implement REAL and LASTING liberal reforms. _______________________ (Think results) 10pts.
4) In one sentence, provide one example to justify your answer. Be specific. (It caused an economic or political crisis is not a specific answer..... What or who caused? What happen to the economy? What happened politically? Who suffered? ) 40pts.
1) The country or region that successfully established Real and Lasting liberal reforms during the 19 th century is the U.S.
In U.S there was neither monarchy,an aristocracy, or an established church like that in western Europe hence it was relatively easier for the liberal ideas to gain ground. Without much opposing agents Liberalism was well established in the U.S, in its constitutional structure and political culture. Capitalism enabled the middle class to freely employ their energies by expounding the means of production,and vastly increasing the wealth of the society. The constitutional government was accountable to the people through the election of representatives. As the wealth generated through free market economy was not generating equitable wealth and income and the masses were still in poverty and this was not sustainable for achieve growth and prosperity in the economy. Most liberals came to recognize that the operation of the market needed to be supplemented and corrected. Although liberals believed that price, wages, profits should continue to be the subject of negotiation among the interested parties, they insisted that price- wage - profit decisions affecting the economy as a whole must be reconciled with public policy. The U.S government was committed to promoting full employment, to maximize the use of their factors of production and industrial capacity and in providing maximum purchasing power to its citizens.
Hence liberal ideas were initially promoted and established.Later measures were adopted to remove the inherent flaws in the system and ensure that all the benefits from a liberalism can be extracted while minimizing its flaws thus achieving growth and prosperity in an equitable and sustainable manner.
2. The citizens in the U.S were freely able to employ their energies in pursuing their individual growth and prosperity and this resulted in the society as a whole benefiting with increased prosperity and economic growth. The citizens were were able to accomplish their professional aspirations with the support of the institutions set up by the constitution and the government. When there is individual rights, property rights, protection of intellectual property, justice is delivered in the fair manner, when the law and rights are imposed in the right spirit and manner and when equitable access to resources and opportunities is availed by the citizens it results in the overall economic growth. And this was achieved through the liberalization and establishment of the constitution, government and other institutions and liberal reforms and policy which was implemented.
3.Russia failed in establishing real and lasting liberal reforms.
This has resulted in economic stagnation. There is no innovation in the economy, no economic growth, no prosperity for the masses.The economic and political institutions are governed by a narrow bunch of elites and they exploit these institutions to generate wealth for themselves rather the masses. The masses have no meaningful opportunities to employ their energies to generate income and wealth this has resulted in the factors of production , production capacity being employed way below their potential causing the economy to stagnate and its citizens living a substandard life and failing to achieve their aspirations.
4. Russia is an economic morass. Post communist era Russian economy has failed to achieve meaningful growth. There are several reasons to this some of them are decades of mismanagement of the economy and its resources, rampant corruption , half hearted reforms, shying away from pro-market and pro-democracy reforms etc. Foreign Investors have pulled out of Russia, the Russian economy has failed to effectively integrate in the international economy. Its industrial base is obsolete, the finished goods are barely competitive in the domestic market let alone in the global market.The reason for the fiasco of Russian economy is the failure to bring in meaningful and liberal market and political reforms aimed at achieving sustainable and equitable growth and prosperity.