Editing Neoliberalism (section)

== Post–World War II neoliberal currents ==
For decades after the formation of the [[Mont Pelerin Society]], the ideas of the society would remain largely on the fringes of political policy, confined to a number of think-tanks and universities{{sfnp|Harvey|2005|p=40}} and achieving only measured success with the [[ordoliberal]]s in [[Germany]], who maintained the need for strong state influence in the economy. It would not be until a succession of economic downturns and crises in the 1970s that neoliberal policy proposals would be widely implemented. By this time, neoliberal thought had evolved. The early neoliberal ideas of the [[Mont Pelerin Society]] had sought to chart a middle way between the trend of increasing government intervention implemented after the [[Great Depression]] and the ''laissez-faire'' economics many in the society believed had produced the Great Depression. [[Milton Friedman]], wrote in his early essay "Neo-liberalism and Its Prospects" that "Neo-liberalism would accept the nineteenth-century liberal emphasis on the fundamental importance of the individual, but it would substitute for the nineteenth century goal of ''laissez-faire'' as a means to this end, the goal of the competitive order", which requires limited state intervention to "police the system, establish conditions favorable to competition and [[United States antitrust law|prevent monopoly]], provide a stable [[Central bank|monetary framework]], and relieve acute misery and distress."<ref>{{cite news |last1=Friedman |first1=Milton |title=Neo-Liberalism and Its Prospects |url=https://miltonfriedman.hoover.org/objects/57816/neoliberalism-and-its-prospects?ctx=b8c0f32e-f5a4-4e53-ba3d-cf017b993579&idx=0 |access-date=July 25, 2019 |publisher=Farmand |date=February 17, 1951}}</ref> By the 1970s, neoliberal thought—including Friedman's—focused almost exclusively on [[market liberalization]] and was adamant in its opposition to nearly all forms of state interference in the economy.{{sfnp|Stedman Jones|2014|p={{page needed|date=May 2023}}}}

One of the earliest and most influential turns to neoliberal reform occurred in [[Chile]] after an economic crisis in the early 1970s. After several years of [[socialist]] economic policies under president [[Salvador Allende]], a [[1973 Chilean coup d'état|1973 coup d'état]], which established a [[military junta]] under dictator [[Augusto Pinochet]], led to the implementation of a number of sweeping neoliberal economic reforms that had been proposed by the [[Chicago Boys]], a group of Chilean economists educated under [[Milton Friedman]]. This "neoliberal project" served as "the first experiment with neoliberal state formation" and provided an example for neoliberal reforms elsewhere.{{sfnp|Harvey|2005|p=7}} Beginning in the early 1980s, the [[Presidency of Ronald Reagan|Reagan administration]] and [[Margaret Thatcher|Thatcher government]] implemented a series of neoliberal economic reforms to counter the chronic [[stagflation]] the [[United States]] and [[United Kingdom]] had each experienced throughout the 1970s. Neoliberal policies continued to dominate American and British politics until the [[Great Recession]].{{sfnp|Stedman Jones|2014|p={{page needed|date=May 2023}}}} Following British and American reform, neoliberal policies were exported abroad, with countries in [[Latin America]], the [[Asia-Pacific]], the [[Middle East]], and [[China]] implementing significant neoliberal reform. Additionally, the [[International Monetary Fund]] and [[World Bank]] encouraged neoliberal reforms in many [[developing countries]] by placing reform requirements on loans, in a process known as [[structural adjustment]].{{sfnp|Harvey|2005|p=29}}

=== Germany ===
[[File:Bundesarchiv B 145 Bild-F015320-0010, Ludwig Erhard.jpg|thumb|upright|[[Ludwig Erhard]]]]

Neoliberal ideas were first implemented in [[West Germany]]. The economists around [[Ludwig Erhard]] drew on the theories they had developed in the 1930s and 1940s and contributed to West Germany's reconstruction after the Second World War.{{sfnp|Hartwich|2009|p=22}} Erhard was a member of the Mont Pelerin Society and in constant contact with other neoliberals. He pointed out that he is commonly classified as neoliberal and that he accepted this classification.<ref>{{cite book |first=Ludwig |last=Erhard |author-link=Ludwig Erhard |chapter-url=http://www.franz-oppenheimer.de/le64a.htm |chapter=Franz Oppenheimer, dem Lehrer und Freund |language=de |trans-chapter=Franz Oppenheimer, the teacher and friend |editor-first=Ludwig |editor-last=Erhard |editor-link=Ludwig Erhard |title=Gedanken aus fünf Jahrzehnten, Reden und Schriften |trans-title=Thoughts from five decades, speeches and writings |publisher=Karl Hohmann |location=Düsseldorf |date=1988 |page=861 |quote=Rede zu Oppenheimers 100. Geburtstag, gehalten in der Freien Universität Berlin (1964). |trans-quote=Speech on Oppenheimer's 100th birthday, held at the Freie Universität Berlin (1964). |isbn=9783430125390}}</ref>

The [[ordoliberal]] [[Freiburg School]] was more pragmatic. The German neoliberals accepted the classical liberal notion that competition drives economic prosperity. However, they argued that a ''laissez-faire'' state policy stifles competition, as the strong devour the weak since monopolies and cartels could pose a threat to freedom of competition. They supported the creation of a well-developed legal system and capable regulatory apparatus. While still opposed to full-scale Keynesian employment policies or an extensive [[welfare state]], German neoliberal theory was marked by the willingness to place [[Humanistic capitalism|humanistic]] and social values on par with economic efficiency. [[Alfred Müller-Armack]] coined the phrase "social market economy" to emphasize the [[Egalitarianism|egalitarian]] and humanistic bent of the idea.{{sfnp|Boas|Gans-Morse|2009}} According to Boas and Gans-Morse, [[Walter Eucken]] stated that "social security and social justice are the greatest concerns of our time".{{sfnp|Boas|Gans-Morse|2009}}

[[File:Marshallplanhilfe.gif|thumb|left|upright|Builders in [[West Berlin]], 1952]]

Erhard emphasized that the market was inherently social and did not need to be made so.{{sfnp|Hartwich|2009|p={{page needed|date=May 2023}} }} He hoped that growing prosperity would enable the population to manage much of their social security by self-reliance and end the necessity for a widespread welfare state. By the name of ''Volkskapitalismus'', there were some efforts to foster private savings. Although average contributions to the public old age insurance were quite small, it remained by far the most important old age income source for a majority of the German population, therefore despite liberal rhetoric the 1950s witnessed what has been called a "reluctant expansion of the welfare state". To end widespread poverty among the elderly the pension reform of 1957 brought a significant extension of the German welfare state which already had been established under [[Otto von Bismarck]].<ref>{{cite book |first=Werner |last=Abelshauser |title=Deutsche Wirtschaftsgeschichte seit 1945 |language=de |trans-title=German economic history since 1945 |publisher=C.H. Beck |date=2011 |isbn=978-3-406-510946 |page=192}}</ref> Rüstow, who had coined the label "neoliberalism", criticized that development tendency and pressed for a more limited welfare program.{{sfnp|Hartwich|2009|p={{page needed|date=May 2023}}}}

Hayek did not like the expression "social market economy", but stated in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase. In Hayek's view, the social market economy's aiming for both a market economy and [[social justice]] was a muddle of inconsistent aims.<ref>{{cite book |first=Josef |last=Drexl |title=Die wirtschaftliche Selbstbestimmung des Verbrauchers |language=de |trans-title=The economic self-determination of the consumer |publisher=J.C.B. Mohr |date=1998 |isbn=3-16-146938-0 |chapter=Freiheitssicherung auch gegen den Sozialstaat |trans-chapter=Safeguarding freedom also against the welfare state |page=144}}</ref> Despite his controversies with the German neoliberals at the Mont Pelerin Society, [[Ludwig von Mises]] stated that Erhard and Müller-Armack accomplished a great act of liberalism to restore the German economy and called this "a lesson for the US".<ref>{{cite book |first=Ralf |last=Ptak |title=Vom Ordoliberalismus zur Sozialen Marktwirtschaft: Stationen des Neoliberalismus in Deutschland |language=de |trans-title=From Ordoliberalism to the Social Market economy: Stations of Neoliberalism in Germany |date=2004 |pages=18–19}}</ref> According to different research Mises believed that the ordoliberals were hardly better than socialists. As an answer to Hans Hellwig's complaints about the interventionist excesses of the Erhard ministry and the ordoliberals, Mises wrote: "I have no illusions about the true character of the politics and politicians of the social market economy". According to Mises, Erhard's teacher [[Franz Oppenheimer]] "taught more or less the [[New Frontier]] line of" [[John F Kennedy|President Kennedy's]] "Harvard consultants ([[Arthur M. Schlesinger|Schlesinger]], [[John Kenneth Galbraith|Galbraith]], etc.)".<ref>{{cite book |first=Jörg Guido |last=Hülsmann |author-link=Jörg Guido Hülsmann |title=Mises: The Last Knight of Liberalism |year=2007 |isbn=978-1933550183 |pages=1007–08|publisher=Ludwig von Mises Institute }}</ref>

In Germany, neoliberalism at first was synonymous with both ordoliberalism and social market economy. But over time the original term neoliberalism gradually disappeared since social market economy was a much more positive term and fit better into the {{lang|de|[[Wirtschaftswunder]]}} (economic miracle) mentality of the 1950s and 1960s.{{sfnp|Hartwich|2009|p={{page needed|date=May 2023}}}}

=== Latin America ===
In the 1980s, numerous governments in Latin America adopted neoliberal policies.<ref>{{cite book |first=Peter |last=Kingstone |title=The Rise and Fall (and Rise Again?) of Neoliberalism in Latin America |publisher=[[SAGE Publications]] Ltd |date=2018 |isbn=}}</ref><ref name="Otero 2012 pp. 282–294">{{cite journal |last=Otero |first=Gerardo |title=The neoliberal food regime in Latin America: state, agribusiness transnational corporations and biotechnology |journal=Canadian Journal of Development Studies/Revue canadienne d'études du développement |publisher=Informa UK Limited |volume=33 |issue=3 |year=2012 |issn=0225-5189 |doi=10.1080/02255189.2012.711747 |pages=282–294 |s2cid=59042471 |oclc=4912306096}}</ref><ref>{{cite book |first=Ben Ross |last=Schneider |chapter=The material bases of technocracy: Investor confidence and neoliberalism in Latin America |title=The politics of expertise in Latin America |editor1-first=Miguel A. |editor1-last=Centeno |editor2-first=Patricio |editor2-last=Silva |publisher=[[Palgrave Macmillan]] |date=1998 |pages=77–95 |url=https://www.palgrave.com/gp/book/9780312210267 |archive-url=https://web.archive.org/web/20191102140153/https://www.palgrave.com/gp/book/9780312210267 |archive-date=November 2, 2019}}</ref>

==== Chile ====
{{further|Crisis of 1982|Miracle of Chile|2019–2021 Chilean protests}}
Chile was among the earliest nations to implement neoliberal reform. [[Marxism|Marxist]] economic geographer [[David Harvey]] has described the substantial neoliberal reforms in Chile beginning in the 1970s as "the first experiment with neoliberal state formation", which would provide "helpful evidence to support the subsequent turn to neoliberalism in both Britain... and the United States."{{sfnp|Harvey|2005|p=}} Similarly, [[Vincent Bevins]] says that Chile under [[Augusto Pinochet]] "became the world's first test case for 'neoliberal' economics."<ref>{{cite book |last1=Bevins |first1=Vincent |author1-link=Vincent Bevins |title=[[The Jakarta Method|The Jakarta Method: Washington's Anticommunist Crusade and the Mass Murder Program that Shaped Our World]] |date=2020 |publisher=[[PublicAffairs]] |page=207 |isbn=978-1541742406}}</ref>

The turn to neoliberal policies in Chile originated with the [[Chicago Boys]], a select group of Chilean students who, beginning in 1955, were invited to the [[University of Chicago]] to pursue postgraduate studies in economics. They studied directly under [[Milton Friedman]] and his disciple, [[Arnold Harberger]], and were exposed to [[Friedrich Hayek]]. Upon their return to Chile, their neoliberal policy proposals—which centered on widespread [[deregulation]], [[privatization]], reductions to government spending to counter high inflation, and other free-market policies<ref>{{cite news |last1=Opazo |first1=Tania |title=The Boys Who Got to Remake an Economy |url=https://slate.com/business/2016/01/in-chicago-boys-the-story-of-chilean-economists-who-studied-in-america-and-then-remade-their-country.html |access-date=July 6, 2019 |publisher=[[Slate (magazine)|Slate]] |date=January 12, 2016}}</ref>—would remain largely on the fringes of Chilean economic and political thought for a number of years, as the [[presidency of Salvador Allende]] (1970–1973) brought about a [[socialist]] reorientation of the economy.<ref>{{cite magazine |url=http://www.time.com/time/magazine/article/0,9171,907929,00.html |title=CHILE: The Bloody End of a Marxist Dream |magazine=[[Time (magazine)|Time]] |archive-url=https://web.archive.org/web/20080925065855/http://www.time.com/time/magazine/article/0,9171,907929,00.html |archive-date=September 25, 2008 |quote=....Allende's downfall had implications that reached far beyond the borders of Chile. His had been the first democratically elected Marxist government in Latin America...}}</ref>

[[File:Economic growth of Chile.PNG|thumb|upright=1.15 |Chilean (orange) and average Latin American (blue) rates of growth of [[GDP]] (1971–2007)]]

During the Allende presidency, Chile experienced a severe economic crisis, in which inflation peaked near 150%.<ref name="news.bbc.co.uk">{{cite news |url=http://news.bbc.co.uk/2/hi/americas/63821.stm |work=[[BBC News]] |title=Pinochet's rule: Repression and economic success |date=January 7, 2001 |access-date=May 12, 2010}}</ref> Following an extended period of social unrest and political tension, as well as diplomatic, economic, and covert pressure from the [[United States]],<ref>{{cite web |url=http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/nsaebb8i.htm |title=Chile and the United States: Declassified Documents Relating to the Military Coup, September 11, 1973 |first=Peter |last=Kornbluh}}</ref> the Chilean armed forces and national police overthrew the Allende government in a [[1973 Chilean coup d'état|coup d'état]].<ref>{{cite magazine |url=http://www.csmonitor.com/2006/1211/p00s01-woam.html |title=Controversial legacy of former Chilean dictator Augusto Pinochet |quote=...Gen. Augusto Pinochet, who overthrew Chile's democratically elected Communist government in a 1973 coup ... |archive-url=https://web.archive.org/web/20080516194106/http://www.csmonitor.com/2006/1211/p00s01-woam.html |archive-date=May 16, 2008 |magazine=[[The Christian Science Monitor]] |date=December 11, 2006}}</ref> They established a repressive [[military junta|military ''junta'']], known for its violent [[Indictment and arrest of Augusto Pinochet|suppression of opposition]], and appointed army chief Augusto Pinochet Supreme Head of the nation.<ref>{{cite book |first=Genaro Arriagada |last=Herrera |title=Pinochet: The Politics of Power |url=https://books.google.com/books?id=7F8VAAAAIAAJ&pg=PA36 |year=1988 |publisher=[[Allen & Unwin]] |isbn=978-0-04-497061-3 |page=36 |via=[[Google Books]]}}</ref> His rule was later given legal legitimacy through a controversial [[1980 Chilean constitutional referendum|1980 plebiscite]], which approved a new [[Chilean Constitution of 1980|constitution]] drafted by a government-appointed commission that ensured Pinochet would remain as president for a further eight years—with increased powers—after which he would face a re-election referendum.<ref name=Brit-Pinochet-Regime>{{cite web |last1=Drake |first1=Paul W. |last2=Johnson |first2=John J. |last3=Caviedes |first3=César N. |last4=Carmagnani |first4=Marcello A. |title=The military dictatorship, from 1973 |url=https://www.britannica.com/place/Chile/The-military-dictatorship-from-1973 |website=Encyclopædia Britannica |access-date=July 11, 2019}}</ref>

The Chicago Boys were given significant political influence within the [[Military government of Chile (1973–1990)|military dictatorship]], and they implemented [[Economic history of Chile#Neoliberal reforms (1973–1990)|sweeping economic reform]]. In contrast to the extensive [[nationalization]] and centrally planned economic programs supported by Allende, the Chicago Boys implemented rapid and extensive privatization of state enterprises, deregulation, and significant reductions in trade barriers during the latter half of the 1970s.<ref>{{cite news |title=Explainer: Chile's 'Chicago Boys,' a model for Brazil now? |url=https://www.reuters.com/article/us-brazil-politics-chicagoboys-explainer/explainer-chiles-chicago-boys-a-model-for-brazil-now-idUSKCN1OY1OU |access-date=July 6, 2019 |publisher=[[Reuters]] |date=January 4, 2019}}</ref> In 1978, policies that would further reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced.{{sfnp|Boas|Gans-Morse|2009}} Additionally, the central bank raised interest rates from 49.9% to 178% to counter high inflation.<ref>{{cite book |first=Anil |last=Hira |title=Ideas and Economic Policy in Latin America |publisher=Praeger Publishers |date=1998 |isbn=0-275-96269-5 |page=81}}</ref>

[[File:Panfleto Tercera Jornada Protesta Nacional.jpg|thumb|left |Pamphlet calling for [[Jornadas de Protesta Nacional|a protest]] of economic policy in 1983 following [[Crisis of 1982|the economic crisis]]<ref name=salazar2>{{cite book |title=Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores |language=es |trans-title=Contemporary history of Chile III. The economy: business and worker markets |date=2002 |first1=Gabriel |last1=Salazar |author1-link=Gabriel Salazar |first2=Julio |last2=Pinto |author2-link=Julio Pinto |pages=49–62}}</ref><ref name="kas.de">{{cite web |publisher=[[Konrad Adenauer Foundation]] |first1=Helmut |last1=Wittelsbürger |first2=Albrecht von |last2=Hoff |url=http://www.kas.de/wf/doc/kas_4084-544-1-30.pdf?040415182627 |title=Chile's Way to the Social Market Economy}}</ref>]]

These policies amounted to a [[Shock therapy (economics)|shock therapy]], which rapidly transformed Chile from an economy with a protected market and strong government intervention into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions.<ref name="K. Remmer 1998 5-55">{{cite journal |first=K. |last=Remmer |year=1979 |title=Public Policy and Regime Consolidation: The First Five Years of the Chilean Junta |journal=Journal of the Developing Areas |pages=441–461}}</ref> Inflation was tempered, falling from over 600% in 1974, to below 50% by 1979, to below 10% right before the [[Crisis of 1982|economic crisis of 1982]];<ref name="World Bank-2019">{{cite web |title=Inflation, GDP deflator (annual %) |url=https://data.worldbank.org/indicator/NY.GDP.DEFL.KD.ZG?locations=CL |website=[[World Bank]] |access-date=July 8, 2019}}</ref> GDP growth spiked (see chart) to 10%.<ref>{{Cite web |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=CL |title=GDP Growth (annual %) |website=[[World Bank]] |access-date=July 7, 2019}}</ref> however, inequality widened as wages and benefits to the working class were reduced.<ref name="Winn-2004">{{Cite book |editor-first=Peter |editor-last=Winn |editor-link=Peter Winn |url=https://www.dukeupress.edu/Victims-of-the-Chilean-Miracle/ |title=Victims of the Chilean Miracle: Workers and Neoliberalism in the Pinochet Era, 1973–2002 |publisher=[[Duke University Press]] |date=2004 |isbn=082233321X}}</ref><ref>{{cite book |first1=Pamela |last1=Constable |author-link=Pamela Constable |first2=Arturo |last2=Valenzuela |author2-link=Arturo Valenzuela |title=A Nation of Enemies: Chile Under Pinochet |publisher=[[W. W. Norton & Company]] |date=1993 |isbn=0393309851 |page=219}}</ref>

In 1982, Chile again experienced a [[Crisis of 1982|severe economic recession]]. The cause of this is contested but most scholars believe the [[Latin American debt crisis]]—which swept nearly all of Latin America into financial crisis—was a primary cause.<ref name="salazar23">''Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores''. 2002. [[Gabriel Salazar]] and [[Julio Pinto]]. pp. 49–-62.</ref> Some scholars argue the neoliberal policies of the Chicago boys heightened the crisis (for instance, percent GDP decrease was higher than in any other Latin American country) or even caused it;<ref name="salazar23"/> for instance, some scholars criticize the high interest rates of the period which—while stabilizing inflation—hampered investment and contributed to widespread bankruptcy in the banking industry. Other scholars fault governmental departures from the neoliberal [[Political agenda|agenda]]; for instance, the government pegged the Chilean peso to the US dollar, against the wishes of the Chicago Boys, which economists believe led to an overvalued peso.<ref name="The Political Economy of Unilateral Trade Liberalization">{{cite journal |year=1990 |title=The Political Economy of Unilateral Trade Liberalization |url=http://www.anderson.ucla.edu/faculty/sebastian.edwards/W6510.pdf |archive-url=https://web.archive.org/web/20040730125426/http://www.anderson.ucla.edu/faculty/sebastian.edwards/W6510.pdf |archive-date=July 30, 2004 |url-status=live |journal=[[UCLA]] |access-date=December 6, 2010}}</ref><ref name="Two Lucky People2">{{cite book |year=1998 |title=Two Lucky People |url=https://archive.org/details/twoluckypeopleme00frie |url-access=registration |quote=sergio de castro. |access-date=April 8, 2011 |publisher=[[University of Chicago Press]] |isbn=9780226264158 |last1=Friedman |first1=Milton |author1-link=Milton Friedman |last2=Friedman |first2=Rose D.}}</ref>

[[File:Unemployment Chile.png|thumb|upright=1.15 |Unemployment in Chile and South America (1980–1990)]]

After the recession, Chilean economic growth rose quickly, eventually hovering between 5% and 10% and significantly outpacing the Latin American average (see chart). Additionally, unemployment decreased<ref>{{cite web |title=Unemployment Rate: Aged 15 and Over: All Persons for Chile |url=https://fred.stlouisfed.org/series/LRUNTTTTCLA156N |website=FRED |date=January 1986 |publisher=Organization for Economic Co-operation and Development |access-date=July 8, 2019}}</ref> and the percent of the population below the poverty line declined from 50% in 1984 to 34% by 1989.<ref name=Hoover-ChicagoBoys>{{Cite news |url=https://www.hoover.org/research/what-pinochet-did-chile |title=What Pinochet Did for Chile |last1=Packenham |first1=Robert A. |date=January 30, 2007 |work=[[Hoover Institution]] |access-date=July 7, 2019 |last2=Ratliff |first2=William}}</ref> This led [[Milton Friedman]] to call the period the "[[Miracle of Chile]]", and he attributed the successes to the neoliberal policies of the Chicago boys. Some scholars attribute the successes to the re-regulation of the banking industry and a number of targeted social programs designed to alleviate poverty.<ref name=Hoover-ChicagoBoys/> Others say that while the economy had stabilized and was growing by the late 1980s, inequality widened: nearly 45% of the population had fallen into poverty while the wealthiest 10% had seen their incomes rise by 83%.<ref>{{cite book |author-link=Naomi Klein |last=Klein |first=Naomi |date=2008 |title=[[The Shock Doctrine: The Rise of Disaster Capitalism]] |publisher=[[Picador (imprint)|Picador]] |isbn=978-0312427993 |page=[https://books.google.com/books?id=PwHUAq5LPOQC&pg=PA105 105]}}</ref> According to Chilean economist [[Alejandro Foxley]], when Pinochet finished his 17-year term by 1990, around 44% of Chilean families were living below the poverty line.<ref>{{Cite journal |last=Hojman |first=David E. |date=1996 |title=Poverty and Inequality in Chile: Are Democratic Politics and Neoliberal Economics Good for You? |url=https://www.jstor.org/stable/166361 |journal=Journal of Interamerican Studies and World Affairs |volume=38 |issue=2/3 |pages=73–96 |doi=10.2307/166361 |jstor=166361 |issn=0022-1937}}</ref><ref>{{cite news |url=https://www.pbs.org/wgbh/commandingheights/shared/minitext/int_alejandrofoxley.html#2 |title=PBS Interview with Alejandro Foxley conducted March 26, 2001 |work=[[The Commanding Heights: The Battle for the World Economy]] |access-date=December 4, 2014}}</ref>{{Primary source inline|date=August 2022}}

Despite years of suppression by the Pinochet junta, a presidential election was held in 1988, as dictated by the 1980 constitution (though not without Pinochet first holding another plebiscite in an attempt to amend the constitution).<ref name=Brit-Pinochet-Regime/> In 1990, [[Patricio Aylwin]] was democratically elected, bringing an end to the military dictatorship. The reasons cited for Pinochet's acceptance of democratic transition are numerous. Hayek, echoing arguments he had made years earlier in ''[[The Road to Serfdom]],''<ref name="Chicago Press 1944 p.95">{{cite book |first=Friedrich |last=Hayek |author-link=Friedrich Hayek |title=[[The Road to Serfdom]] |year=1944 |publisher=[[University of Chicago Press]] |edition=50th Anniversary edition (1944) |isbn=0-226-32061-8 |page=95}}</ref> argued that the increased economic freedom he believed the neoliberal reforms had brought had put pressure on the dictatorship over time, resulting in a gradual increase in political freedom and, ultimately, the restoration of democracy.{{citation needed|date=July 2019}} The Chilean scholars Javier Martínez and Alvaro Díaz reject this argument, pointing to the long tradition of democracy in Chile. They assert that the defeat of the Pinochet regime and the return of democracy came primarily from large-scale mass rebellion that eventually forced party [[elite]]s to use existing institutional mechanisms to restore democracy.<ref>{{cite book |first1=Alvaro Díaz |last1=Eco |first2=Javier Martínez |last2=Bengoa |first3=Diaz |last3=Martinez |first4=Dharam |last4=Ghai |title=Chile: The Great Transformation |publisher=[[Brookings Institution Press]] |date=1996 |isbn=0-8157-5478-7 |pages=3–4}}</ref>

[[File:GDP per capita LA-Chile-2.png|thumb|upright=1.15 |GDP per capita in Chile and Latin America 1950–2010 (time under Pinochet highlighted)]]

In the 1990s, neoliberal economic policies broadened and deepened, including unilateral tariff reductions and the adoption of free trade agreements with a number of Latin American countries and Canada.<ref name=Chile-IMF>{{cite journal |last1=Aninat |first1=Eduardo |title=Chile in the 1990s: Embracing Development Opportunities |journal=[[Finance & Development]] |date=March 2000 |volume=37 |issue=1 |url=https://www.imf.org/external/pubs/ft/fandd/2000/03/aninat.htm |access-date=July 11, 2019}}</ref> At the same time, the decade brought increases in government expenditure on social programs to tackle poverty and poor quality housing.<ref>{{cite book |last1=Dominguez |first1=Jorge |title=Constructing democratic governance in Latin America |date=2003 |publisher=[[Johns Hopkins University Press]] |isbn=1421409798}}</ref> Throughout the 1990s, Chile maintained high growth, averaging 7.3% from 1990 to 1998.<ref name=Chile-IMF/> Eduardo Aninat, writing for the IMF journal ''Finance & Development'', called the period from 1986 to 2000 "the longest, strongest, and most stable period of growth in [Chile's] history."<ref name=Chile-IMF/> In 1999, there was a brief recession brought about by the [[Asian financial crisis]], with growth resuming in 2000 and remaining near 5% until the [[Great Recession]].<ref>{{cite web |title=GDP growth (annual %) |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=CL |website=The World Bank |access-date=July 11, 2019}}</ref>

In sum, the neoliberal policies of the 1980s and 1990s—initiated by a repressive [[authoritarianism|authoritarian government]]—transformed the Chilean economy from a [[protectionism|protected market]] with high [[barriers to trade]] and hefty [[government intervention]] into one of the world's most [[open economy|open]] [[free-market]] economies.<ref>{{cite web |title=2019 |work=[[Index of Economic Freedom]] |url=https://www.heritage.org/index/ranking |publisher=[[The Heritage Foundation]] |access-date=July 8, 2019 |archive-date=October 26, 2017 |archive-url=https://web.archive.org/web/20171026110910/http://www.heritage.org/index/ranking |url-status=unfit }}</ref><ref name="K. Remmer 1998 5-55"/> Chile experienced the worst economic bust of any Latin American country during the [[Latin American debt crisis]] (several years into neoliberal reform), but also had one of the most robust recoveries,<ref name=Heritage-Chile/> rising from the poorest Latin American country in terms of [[GDP per capita]] in 1980 (along with Peru) to the richest in 2019.<ref name="VOX-CEPR">{{cite web |last1=Edwards |first1=Sebastian |title=Chile's insurgency and the end of neoliberalism |url=https://voxeu.org/article/chile-s-insurgency-and-end-neoliberalism |website=[[Vox (website)|VOX]] |publisher=Center for Economic and Policy Research |date=November 30, 2019}}</ref> Average annual economic growth from the mid-1980s to the Asian crisis in 1997 was 7.2%, 3.5% between 1998 and 2005, and growth in per capita real income from 1985 to 1996 averaged 5%—all outpacing Latin American averages.<ref name=Heritage-Chile>{{cite news |last1=Buc |first1=Hernán Büchi |title=How Chile Successfully Transformed Its Economy |url=https://www.heritage.org/international-economies/report/how-chile-successfully-transformed-its-economy |archive-url=https://web.archive.org/web/20170208170956/http://www.heritage.org/international-economies/report/how-chile-successfully-transformed-its-economy |url-status=unfit |archive-date=February 8, 2017 |access-date=July 8, 2019 |publisher=[[The Heritage Foundation]] |date=September 18, 2006}}</ref><ref>{{cite journal |last=Becker |first=Gary S. |author-link=Gary Becker |year=1997 |editor1-last=Robinson |editor1-first=Peter |title=What Latin America Owes to the "Chicago Boys" |url=http://www.hoover.org/publications/hoover-digest/article/7743 |url-status=dead |journal=[[Hoover Institution#Publications|Hoover Digest]] |issue=4 |issn=1088-5161 |archive-url=https://web.archive.org/web/20100724040917/http://www.hoover.org/publications/hoover-digest/article/7743 |archive-date=July 24, 2010 |access-date=October 3, 2010}}</ref> Inflation was brought under control.<ref name="World Bank-2019" /> Between 1970 and 1985 the [[infant mortality]] rate in Chile fell from 76.1 per 1000 to 22.6 per 1000,<ref name="WDI2">{{cite web |website=[[World Bank]] |date=April 2010 |location=Washington, DC |access-date=October 1, 2010 |url=http://data.worldbank.org |title=World Development Indicators database}}</ref> the lowest in Latin America.<ref>{{cite book |title=Economic Reforms in Chile: From Dictatorship to Democracy |last=French-Davis |first=Ricardo |publisher=[[University of Michigan Press]] |location=Ann Arbor, MI |page=188}}</ref> Unemployment from 1980 to 1990 decreased, but remained higher than the South American average (which was stagnant). And despite public perception among Chileans that economic inequality has increased, Chile's [[Gini coefficient]] has in fact dropped from 56.2 in 1987 to 46.6 in 2017.<ref name="VOX-CEPR"/><ref>{{cite web |title=GINI index (World Bank estimate) – Chile |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=CL |publisher=The World Bank}}</ref> While this is near the Latin American average, Chile still has one of the highest Gini coefficients in the [[OECD]], an organization of mostly [[developed countries]] that includes Chile but not most other Latin American countries.<ref>{{cite web |title=Income inequality |url=https://data.oecd.org/inequality/income-inequality.htm |website=OECD Data |publisher=[[Organisation for Economic Co-operation and Development]] |access-date=January 22, 2020 |archive-url=https://web.archive.org/web/20190918094533/https://data.oecd.org/inequality/income-inequality.htm |archive-date=September 18, 2019 |url-status=dead}}</ref> Furthermore, the Gini coefficient measures only [[income inequality]]; Chile has more mixed inequality ratings in the OECD's [[OECD Better Life Index|Better Life Index]], which includes indexes for more factors than only income, like [[housing]] and [[education]].<ref>{{cite web |title=OECD Better Life Index |url=http://www.oecdbetterlifeindex.org/ |publisher=[[Organisation for Economic Co-operation and Development]]}}</ref><ref name="VOX-CEPR"/> Additionally, the percentage of the Chilean population living in poverty rose from 17% in 1969 to 45% in 1985<ref>Ricardo Ffrench-Davis, ''Economic Reforms in Chile: From Dictatorship to Democracy'', [[University of Michigan Press]], 2002, {{ISBN|978-0472112326}}, p. 193</ref> at the same time government budgets for education, health and housing dropped by over 20% on average.<ref name="Petras and Vieux 1998 57-72">{{Cite journal |last1=Petras |first1=James |last2=Vieux |first2=Steve |date=July 1990 |title=The Chilean "economic miracle": an empirical critique |journal=[[Critical Sociology (journal)|Critical Sociology]] |volume=17 |issue=2 |pages=57–72 |doi=10.1177/089692059001700203 |s2cid=143590493}}</ref> The era was also marked by economic instability.<ref name=Sen-Chile>{{Cite book |title=Hunger and Public Action |last=Sen |first=Amartya |publisher=[[Oxford University Press]] |year=1991 |isbn=9780198283652}}</ref>

Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The [[CIA World Factbook]] states that Chile's "sound economic policies", maintained consistently since the 1980s, "have contributed to steady economic growth in Chile and have more than halved poverty rates,"<ref name="cia.gov">[https://www.cia.gov/the-world-factbook/countries/chile/ Chile]. ''[[The World Factbook]]''. [[Central Intelligence Agency]].</ref> and some scholars have even called the period the "[[Miracle of Chile]]". Other scholars have called it a failure that led to extreme inequalities in the distribution of income and resulted in severe socioeconomic damage.<ref name="kas.de"/> It is also contested how much these changes were the result of neoliberal economic policies and how much they were the result of other factors;<ref name=Sen-Chile/> in particular, some scholars argue that after the [[Crisis of 1982]] the "pure" neoliberalism of the late 1970s was replaced by a focus on fostering a [[social market economy]] that mixed neoliberal and social welfare policies.{{sfnp|Harvey|2005|p=74}}<ref>{{cite journal |first=Silvia |last=Borzutzky |title=From Chicago to Santiago: Neoliberalism and social security privatization in Chile |journal=[[Governance (journal)|Governance]] |volume=18 |number=4 |date=2005 |pages=655–674 |doi=10.1111/j.1468-0491.2005.00296.x |url=https://www.researchgate.net/publication/229866806}}</ref>

As a response to the [[2019–20 Chilean protests]], a [[2020 Chilean national plebiscite|national plebiscite]] was held in October 2020 to decide whether the [[Chilean Constitution of 1980|Chilean constitution]] would be rewritten. The "approve" option for a new constitution to replace the Pinochet-era constitution, which entrenched certain neoliberal principles into the country's basic law, won with 78% of the vote.<ref>{{Cite news |date=October 26, 2020 |title=Jubilation as Chile votes to rewrite constitution |url=https://www.bbc.com/news/world-latin-america-54687090 |work=[[BBC News]]}}</ref><ref name="bonnefoy">{{Cite news |last=Bonnefoy |first=Pascale |date=October 25, 2020 |title='An End to the Chapter of Dictatorship': Chileans Vote to Draft a New Constitution |url=https://www.nytimes.com/2020/10/25/world/americas/chile-constitution-plebiscite.html |archive-url=https://web.archive.org/web/20201025171006/https://www.nytimes.com/2020/10/25/world/americas/chile-constitution-plebiscite.html |archive-date=October 25, 2020 |url-access=subscription |url-status=live |access-date=November 22, 2020 |work=[[The New York Times]]}}</ref> However, in [[2022 Chilean constitutional referendum|September 2022]], the referendum to approve a rewritten the constitution was rejected with 61% of the vote.

==== Peru ====
{{Further|Plan Verde}}
Peruvian economist [[Hernando de Soto (economist)|Hernando de Soto]], the founder of one of the first neoliberal organizations in Latin America, [[Institute for Liberty and Democracy]] (ILD), began to receive assistance from [[Ronald Reagan]]'s administration, with the [[National Endowment for Democracy]]'s Center for International Private Enterprise (CIPE) providing his ILD with funding.<ref name="Pee-2018a">{{Cite book |last=Pee |first=Robert |title=The Reagan Administration, the Cold War, and the Transition to Democracy Promotion |publisher=[[Palgrave Macmillan]] |year=2018 |isbn=978-3319963815 |pages=178–180}}</ref><ref name="Pee-2018">{{Cite book |last=Pee |first=Robert |title=The Reagan Administration, the Cold War, and the Transition to Democracy Promotion |publisher=[[Palgrave Macmillan]] |year=2018 |isbn=978-3319963815 |pages=168–187}}</ref><ref name="Mitchell-2005">{{Cite journal |last=Mitchell |first=Timothy |date=2005 |title=The work of economics: how a discipline makes its world |journal=[[European Journal of Sociology]] |volume=46 |issue=2 |pages=299–310 |doi=10.1017/S000397560500010X |doi-access=free}}</ref> The economic policy of [[President of Peru|President]] [[Alan García]] distanced Peru from international markets, resulting in lower foreign investment in the country.<ref name="CHA-2010">{{Cite web |date=June 2, 2010 |title=Welcome, Mr. Peruvian President: Why Alan García is no hero to his people |url=http://www.coha.org/welcome-mr-peruvian-president-why-alan-garcia-is-no-hero-to-his-people/ |access-date=April 18, 2019 |url-status=live |archive-url=https://web.archive.org/web/20190418150551/http://www.coha.org/welcome-mr-peruvian-president-why-alan-garcia-is-no-hero-to-his-people/ |archive-date=April 18, 2019 |website=[[Council on Hemispheric Affairs]]}}</ref> Under García, Peru experienced [[hyperinflation]] and increased confrontations with the guerrilla group [[Shining Path]], leading the country towards high levels of instability.<ref name="Burt-1998">{{Cite journal |last=Burt |first=Jo-Marie |date=September–October 1998 |title=Unsettled accounts: militarization and memory in postwar Peru |journal=[[NACLA|NACLA Report on the Americas]] |publisher=[[Taylor & Francis]] |volume=32 |issue=2 |pages=35–41 |doi=10.1080/10714839.1998.11725657 |quote=the military's growing frustration over the limitations placed upon its counterinsurgency operations by democratic institutions, coupled with the growing inability of civilian politicians to deal with the spiraling economic crisis and the expansion of the Shining Path, prompted a group of military officers to devise a coup plan in the late 1980s. The plan called for the dissolution of Peru's civilian government, military control over the state, and total elimination of armed opposition groups. The plan, developed in a series of documents known as the "Plan Verde," outlined a strategy for carrying out a military coup in which the armed forces would govern for 15 to 20 years and radically restructure state-society relations along neoliberal lines.}}</ref> The Peruvian armed forces grew frustrated with the inability of the García administration to handle the nation's crises and began to draft an operation – [[Plan Verde]] – to overthrow his government.<ref name="Burt-1998" />

The military's Plan Verde involved the "[[Genocide|total extermination]]" of impoverished and indigenous Peruvians perceived as a drain on the economy, the control or [[censorship]] of media in the nation and the establishment of a [[neoliberal]] economy in Peru.<ref name="CANbio">{{cite journal |last1=Gaussens |first1=Pierre |date=2020 |title=The forced serilization of indigenous population in Mexico in the 1990s |journal=[[Canadian Journal of Bioethics]] |volume=3 |issue=3 |pages=180+ |doi=10.7202/1073797ar |s2cid=234586692 |quote=a government plan, developed by the Peruvian army between 1989 and 1990s to deal with the Shining Path insurrection, later known as the 'Green Plan', whose (unpublished) text expresses in explicit terms a genocidal intention |doi-access=free}}</ref><ref name="Burt-1998"/> During his campaigning for the [[1990 Peruvian general election]], [[Alberto Fujimori]] initially expressed concern against the proposed neoliberal policies of his opponent [[Mario Vargas Llosa]].<ref>{{cite web |date=April 14, 1990 |title=La frugalidad de "Cambio 90" y el derroche de Fredemo |trans-title=The frugality of "Cambio 90" and the waste of Fredemo |publisher=El Proceso |url=http://www.proceso.com.mx/154825/la-frugalidad-de-cambio-90-y-el-derroche-de-fredemo |access-date=December 27, 2017 |archive-date=September 20, 2018 |archive-url=https://web.archive.org/web/20180920122715/https://www.proceso.com.mx/154825/la-frugalidad-de-cambio-90-y-el-derroche-de-fredemo |url-status=dead |language=es}}</ref> Peruvian magazine ''[[Oiga (magazine)|Oiga]]'' reported that, following the election, the armed forces were unsure of Fujimori's willingness to fulfill the plan's objectives, though they planned to convince Fujimori to agree to the operation prior to his inauguration.<ref name="Oiga-1993">{{Cite magazine |date=July 12, 1993 |title=El "Plan Verde" Historia de una traición |trans-title=The "Green Plan" Story of a betrayal |url=https://www.scribd.com/document/310286817/El-Plan-Verde |magazine=[[Oiga (magazine)|Oiga]] |volume=647 |language=es}}</ref> After taking office, Fujimori abandoned his campaign's economic platform, adopting more aggressive neoliberal policies than those espoused by his election competitor Vargas Llosa.<ref name="gouge32">{{Cite book |last=Gouge |first=Thomas |title=Exodus from Capitalism: The End of Inflation and Debt |date=2003 |page=363}}</ref> With Fujimori's compliance, plans for a coup as designed in Plan Verde were prepared for two years and finally executed during the [[1992 Peruvian coup d'état]], which ultimately established a civilian-military regime.<ref name="LAgolpe1">{{cite journal |last1=Cameron |first1=Maxwell A. |date=June 1998 |title=Latin American Autogolpes: Dangerous Undertows in the Third Wave of Democratisation |journal=[[Third World Quarterly]] |publisher=[[Taylor & Francis]] |volume=19 |issue=2 |page=228 |doi=10.1080/01436599814433 |quote=the outlines for Peru's presidential coup were first developed within the armed forces before the 1990 election. This Plan Verde was shown to President Fujimorti after the 1990 election before his inauguration. Thus, the president was able to prepare for an eventual self-coup during the first two years of his administration}}</ref><ref name="Oiga-1993"/>

Shortly after the inauguration of Fujimori, his government received a $715 million grant from [[United States Agency for International Development|United States Agency for International Development (USAID)]] on 29 September 1990 for the Policy Analysis, Planning and Implementation Project (PAPI) that was developed "to support economic policy reform in the country".<ref name="US AID-1997">{{Cite web |date=May 1997 |title=Evaluation of the Policy Analysis, Planning and Implementation (PAPI) Project USAID/Peru |url=https://pdf.usaid.gov/pdf_docs/PDABR060.pdf |archive-url=https://web.archive.org/web/20061007061521/http://pdf.usaid.gov/pdf_docs/PDABR060.pdf |archive-date=October 7, 2006 |url-status=dead |website=[[United States Agency of International Development]]}}</ref> De Soto proved to be influential to Fujimori, who began to repeat de Soto's advocacy for deregulating the Peruvian economy.<ref>{{Cite news |date=March 4, 1991 |title=Peru's Fujimori Weighs In On Behalf of Street Sellers Nation's informal economy is protected in president's economic plan |work=[[The Christian Science Monitor]]}}</ref> Under Fujimori, de Soto served as "the President's personal representative", with ''[[The New York Times]]'' describing de Soto as an "overseas salesman", while others dubbed de Soto as the "informal president" for Fujimori.<ref name="Brooke-1990">{{Cite news |last1=Brooke |first1=James |date=November 27, 1990 |title=A Peruvian Is Laying Out Another Path |language=en-US |work=[[The New York Times]] |url=https://www.nytimes.com/1990/11/27/world/a-peruvian-is-laying-out-another-path.html |access-date=September 26, 2020 |issn=0362-4331}}</ref><ref name="Pee-2018a"/> In a recommendation to Fujimori, de Soto called for a "shock" to Peru's economy.<ref name="Pee-2018a"/> The policies included a 300% tax increase, unregulated prices and privatizing two-hundred and fifty state-owned entities.<ref name="Pee-2018a"/> The policies of de Soto led to the immediate suffering of poor Peruvians who saw unregulated prices increase rapidly.<ref name="Pee-2018a" /> Those living in poverty saw prices increase so much that they could no longer afford food.<ref name="Pee-2018a" /> ''The New York Times'' wrote that de Soto advocated for the collapse of Peru's society, with the economist saying that a civil crisis was necessary to support the policies of Fujimori.<ref name="NYTfeb">{{cite news |last1=Nash |first1=Nathaniel C. |date=February 24, 1991 |title=The World; Fujimori In the Time Of Cholera |page=Section 4, Page 2 |work=[[The New York Times]] |url=https://www.nytimes.com/1991/02/24/weekinreview/the-world-fujimori-in-the-time-of-cholera.html |access-date=August 5, 2021}}</ref> Fujimori and de Soto would ultimately break their ties after de Soto recommended increased involvement of citizens within the government, which was received with disapproval by Fujimori.<ref>{{Cite news |last=Robinson |first=Eugene |date=March 23, 1991 |url=https://www.washingtonpost.com/archive/politics/1991/03/23/peruvians-puzzle-over-president/7010b183-2ef6-4e76-8d53-710d9f5921d6/|title=Peruvians Puzzle Over President; Popularity Plummets As 'Fujishock' Felt |page=a12 |newspaper=[[The Washington Post]] |quote=But when de Soto announced a program of administrative reform to involve the public in government decisions, Fujimori's cabinet undercut him.}}</ref> USAID would go on to assist the Fujimori government with rewriting the 1993 Peruvian constitution, with the agency concluding in 1997 that it helped with the "preparation of legislative texts" and "contributed to the emergence of a private sector advisory role".<ref name="Rendon-2013">{{Cite book |last=Rendón |first=Silvio |title=La intervención de los Estados Unidos en el Perú |language=es |trans-title=The intervention of the United States in Peru |publisher=Editorial Sur |year=2013 |isbn=9786124574139 |pages=150–152}}</ref><ref name="US AID-1997"/> The policies promoted by de Soto and implemented by Fujimori eventually caused macroeconomic stability and a reduction in the rate of [[inflation]], though Peru's poverty rate remained largely unchanged with over half of the population living in poverty in 1998.<ref name="Pee-2018a"/><ref name="Stokes-1997">{{cite journal |last1=Stokes |first1=Susan |title=Are Parties What's Wrong with Democracy in Latin America? |journal=XX International Congress of the Latin American Studies Association, Guadalajara, Mexico, April 17–19, 1997 |year=1997 |citeseerx=10.1.1.569.1490}}</ref><ref>{{Cite book |last=Pee |first=Robert |title=The Reagan Administration, the Cold War, and the Transition to Democracy Promotion |publisher=[[Palgrave Macmillan]] |year=2018 |isbn=978-3319963815 |pages=187–188}}</ref>

According to the [[Foundation for Economic Education]], USAID, the [[United Nations Population Fund|United Nations Population Fund (UNFPA)]] and the [[Nippon Foundation]] also supported the sterilization efforts of the Fujimori government.<ref name="McMaken-2018">{{Cite web |last=McMaken |first=Ryan |date=October 26, 2018 |title=How the U.S. Government Led a Program That Forcibly Sterilized Thousands of Poor Peruvian Women in the 1990s |url=https://fee.org/articles/the-us-government-led-a-program-that-forcibly-sterilized-thousands-of-peruvian-women/ |access-date=August 4, 2021 |website=[[Foundation for Economic Education]] |language=en}}</ref> E. Liagin reported that from 1993 to 1998, USAID "basically took charge of the national health system of Peru" during the period of forced sterilizations.<ref name="McMaken-2018"/> At least 300,000 Peruvians were victims of forced sterilization by the Fujimori government in the 1990s, with the majority being affected by the [[National Population Program|PNSRPF]].<ref name="CANbio"/> The policy of sterilizations resulted in a generational shift that included a smaller younger generation that could not provide economic stimulation to rural areas, making such regions more impoverished.<ref name="BBC News-2002">{{Cite news |date=July 24, 2002 |title=Mass sterilisation scandal shocks Peru |language=en-GB |work=[[BBC News]] |url=http://news.bbc.co.uk/2/hi/americas/2148793.stm |access-date=August 4, 2021}}</ref>

Though economic statistics show improved economic data in Peru in recent decades, the wealth earned between 1990 and 2020 was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished.<ref name="BA Times-2021">{{Cite web |date=June 3, 2021 |title=Buenos Aires Times {{!}} Inequality fuels rural teacher's unlikely bid to upend Peru |url=https://batimes.com.ar/news/latin-america/inequality-fuels-a-rural-teachers-unlikely-bid-to-upend-peru.phtml |url-status=live |archive-url=https://web.archive.org/web/20210604101055/https://batimes.com.ar/news/latin-america/inequality-fuels-a-rural-teachers-unlikely-bid-to-upend-peru.phtml |archive-date=June 4, 2021 |access-date=June 4, 2021 |website=[[Buenos Aires Times]] |publisher=[[Bloomberg.com|Bloomberg]]}}</ref><ref name="Allen-2021">{{cite magazine |last=Allen |first=Nicolas |date=June 1, 2021 |title=Pedro Castillo Can Help End Neoliberalism in Peru |url=https://jacobinmag.com/2021/06/pedro-castillo-peru-libre-keiko-fujimori-runoff-election-june-6-neoliberalism |url-status=live |archive-url=https://web.archive.org/web/20210618113630/https://www.jacobinmag.com/2021/06/pedro-castillo-peru-libre-keiko-fujimori-runoff-election-june-6-neoliberalism |archive-date=June 18, 2021 |access-date=June 3, 2021 |magazine=[[Jacobin (magazine)|Jacobin]]}}</ref><ref name="O'Boyle-2021">{{Cite web |last=O'Boyle |first=Brendan |date=May 3, 2021 |title=Pedro Castillo and the 500-Year-Old Lima vs Rural Divide |url=https://www.americasquarterly.org/article/pedro-castillo-and-the-500-year-old-lima-vs-rural-divide/ |url-status=live |archive-url=https://web.archive.org/web/20210603100944/https://www.americasquarterly.org/article/pedro-castillo-and-the-500-year-old-lima-vs-rural-divide/ |archive-date=June 3, 2021 |access-date=June 3, 2021 |website=[[Americas Quarterly]] |language=en-US}}</ref> Sociologist Maritza Paredes of the [[Pontifical Catholic University of Peru]] stated, "People see that all the natural resources are in the countryside but all the benefits are concentrated in Lima."<ref name="BA Times-2021"/> In 2020, the [[COVID-19 pandemic in Peru]] compounded these disparities,<ref name="Allen-2021"/><ref name="O'Boyle-2021"/> with political scientist Professor Farid Kahhat of the Pontifical Catholic University of Peru stating that, "market reforms in Peru have yielded positive results in terms of reducing poverty ... But what the pandemic has laid bare, particularly in Peru, is that poverty was reduced while leaving the miserable state of public services unaltered{{snd}}most clearly in the case of health services."<ref name="Allen-2021"/> The candidacy of [[Pedro Castillo]] in the [[2021 Peruvian general election]] brought attention to the disparities between urban and rural Peruvians, with much of his support being earned in the exterior portions of the country.<ref name="O'Boyle-2021"/> Castillo ultimately won the election, with ''The New York Times'' reporting his victory as the "clearest repudiation of the country's establishment".<ref>{{Cite news |last=Tegel |first=Simeon |title=Presumed President-elect Pedro Castillo faces challenges in Peru |url=https://www.aljazeera.com/news/2021/6/18/who-is-pedro-castillo-perus-presumed-president-elect |access-date=June 22, 2021 |work=[[Al Jazeera Arabic|Al Jazeera]] |language=en}}</ref><ref>{{cite news |last1=Taj |first1=Mitra |last2=Turkewitz |first2=Julie |date=July 20, 2021 |title=Pedro Castillo, Leftist Political Outsider, Wins Peru Presidency |work=[[The New York Times]] |url=https://www.nytimes.com/2021/07/19/world/americas/peru-election-pedro-castillo.html |archive-url=https://ghostarchive.org/archive/20211228/https://www.nytimes.com/2021/07/19/world/americas/peru-election-pedro-castillo.html |archive-date=December 28, 2021 |url-access=limited |access-date=July 20, 2021}}{{cbignore}}</ref>

==== Argentina ====
{{further|José Alfredo Martínez de Hoz|Domingo Cavallo}}
In the 1960s, [[Latin America]]n intellectuals began to notice the ideas of [[ordoliberalism]]; they often used the Spanish term "neoliberalismo" to refer to this school of thought. They were particularly impressed by the [[social market economy]] and the [[Wirtschaftswunder]] ("economic miracle") in Germany and speculated about the possibility of accomplishing similar policies in their own countries. Neoliberalism in 1960s Argentina meant a philosophy that was more moderate than entirely [[Laissez-faire]] [[free market|free-market]] [[capitalism]] and favored using state policy to temper [[social inequality]] and counter a tendency towards monopoly.{{sfnp|Boas|Gans-Morse|2009}}

In 1976, the [[National Reorganization Process|military dictatorship]]'s economic plan led by [[José Alfredo Martínez de Hoz]] was the first attempt at establishing a neoliberal program in Argentina. They implemented a fiscal [[austerity]] plan that reduced money printing in an attempt to counter inflation. In order to achieve this, salaries were frozen; however, they were unable to reduce inflation, which led to a drop in the real salary of the working class. They also liberalized trade policy so that foreign goods could freely enter the country. Argentina's industry, which had been on the rise for 20 years after the economic policies of former president [[Arturo Frondizi]], rapidly declined as it was not able to compete with foreign goods. Following the measures, there was an increase in poverty from 9% in 1975 to 40% at the end of 1982.<ref name="Winn-2004" />

From 1989 to 2001, more neoliberal policies were implemented by [[Domingo Cavallo]]. This time, the privatization of public services was the main focus, although financial deregulation and free trade with foreign nations were also re-implemented. Along with an increased [[labour market flexibility]], the unemployment rate dropped to 18.3%.<ref>{{Cite journal |date=2005 |title=Poster Child or Victim of Imperialist Globalization? Explaining Argentina's December 2001 Political Crisis and Economic Collapse |jstor=30040267 |journal=[[Latin American Perspectives]] |volume=32 |issue=6 |pages=65–89 |last1=Carranza |first1=Mario E. |doi=10.1177/0094582X05281114 |s2cid=144975029}}</ref> Public perception of the policies was mixed; while some of the privatization was welcomed, much of it was criticized for not being in the people's best interests. Protests resulted in the death of 29 people at the hands of police.<ref>{{Cite journal |last1=Malamud |first1=Andrés |year=2015 |title=Social Revolution or Political Takeover? The Argentine Collapse of 2001 Reassessed |journal=[[Latin American Perspectives]] |volume=42 |page=10 |doi=10.1177/0094582X13492710 |s2cid=153480464}}</ref>

==== Mexico ====
Along with many other Latin American countries in the early 1980s, [[Mexico]] experienced a [[Latin American debt crisis|debt crisis]]. In 1983 the Mexican government ruled by the [[Institutional Revolutionary Party#:~:text=The Institutional Revolutionary Party (Spanish,, PNR), then as the|PRI]], the Institutional Revolutionary Party, [[Mexico and the International Monetary Fund|accepted loans from the IMF]].&nbsp;Among the conditions set by the IMF were requirements for Mexico to privatize state-run industries, [[Devaluation|devalue their currency]], decrease [[trade barrier]]s, and restrict governmental spending.<ref name="Musacchio-2012">{{Cite journal |last=Musacchio |first=Aldo |date=May 8, 2012 |title=Mexico's Financial Crisis of 1994–1995 |url=http://nrs.harvard.edu/urn-3:HUL.InstRepos:9056792 |journal=[[Harvard Business School|Harvard Business School Working Paper]] |issue=12–101 |via=Digital Access to Scholarship at Harvard}}</ref> These policies were aimed at stabilizing Mexico's economy in the short run. Later, Mexico tried to expand these policies to encourage growth and [[foreign direct investment]] (FDI).

The decision to accept the IMF's neoliberal reforms split the PRI between those on the right who wanted to implement neoliberal policies and those the left who did not.<ref name="Laurell-2015">{{Cite journal |last=Laurell |first=Asa Cristina |date=2015 |title=Three Decades of Neoliberalism in Mexico: The Destruction of Society |url=https://journals.sagepub.com/doi/10.1177/0020731414568507 |journal=[[International Journal of Health Services]] |volume=45 |issue=2 |pages=246–264 |doi=10.1177/0020731414568507 |pmid=25813500 |s2cid=35915954 |via=SAGE}}</ref> [[Carlos Salinas de Gortari]], who took power in 1988, doubled down on neoliberal reforms. His policies opened up the financial sector by deregulating the banking system and privatizing commercial banks.<ref name="Musacchio-2012" /><ref name="Laurell-2015" /> Though these policies did encourage a small amount of growth and FDI, the growth rate was below what it had been under previous governments in Mexico, and the increase in foreign investment was largely from existing investors.<ref name="Laurell-2015" /> 
[[File:President Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas participate in the... - NARA - 186460.jpg|thumb|U.S. President Bush, Canadian PM Mulroney, and Mexican President Salinas participate in the ceremonies to sign the North American Free Trade Agreement (NAFTA).]]
On 1 January 1994 the [[Zapatista Army of National Liberation|Zapatista Army]] of National Liberation, named for [[Emiliano Zapata]], a leader in the Mexican revolution, launched an armed rebellion against the Mexican government in the Chiapas region.<ref>{{Cite news |last=Godelmann |first=Iker Reyes |date=July 30, 2014 |title=The Zapatista Movement: The Fight for Indigenous Rights in Mexico |work=Australian Institute for International Affairs |url=http://www.internationalaffairs.org.au/news-item/the-zapatista-movement-the-fight-for-indigenous-rights-in-mexico/}}</ref> Among their demands were rights for indigenous Mexicans as well as opposition to the [[North American Free Trade Agreement]] (NAFTA), which solidified a strategic alliance between state and business.<ref>{{cite journal |last1=Bensabat Kleinberg |first1=Remonda |year=1999 |title=Strategic Alliances: State-Business Relations in Mexico Under Neo-Liberalism and Crisis |journal=[[Bulletin of Latin American Research]] |volume=18 |issue=1 |pages=71–87 |doi=10.1111/j.1470-9856.1999.tb00188.x}}</ref>&nbsp; NAFTA, a trade agreement between the [[United States]], [[Canada]], and Mexico, significantly aided in Mexico's efforts to liberalize trade.

In 1994, the same year of the Zapatista rebellion and the enactment of NAFTA, Mexico faced a [[Mexican peso crisis|financial crisis]]. The crisis, also known as the [[Mexican peso crisis|"Tequila Crisis"]] began in December 1994 with the devaluation of the peso.<ref name="Laurell-2015" /><ref name="Sachs-1996">{{Cite journal |last=Sachs |first=Jeffrey |date=November 1996 |title=The Mexican peso crisis: Sudden death or death foretold? |url=http://www.nber.org/papers/w5563.pdf |journal=[[Journal of International Economics]] |volume=41 |issue=3–4 |pages=265–283 |doi=10.1016/S0022-1996(96)01437-7 |s2cid=154060545 |via=[[Science Direct]]}}</ref> When investors' doubts led to negative speculation they fled with their capital.&nbsp;The central bank was forced to raise [[interest rate]]s which in turn collapsed the banking system as borrowers could no longer pay back their loans.<ref name="Sachs-1996" />

After Salinas, [[Ernesto Zedillo]] (1995–2000) maintained similar economic policies to his predecessor. Despite the crisis, Zedillo continued to enact neoliberal policies and signed new agreements with the [[World Bank]] and the IMF.<ref name="Laurell-2015" /> As a result of these policies and the 1994 recession, Mexico's economy did gain stability. Neither the 2001 or [[Great Recession|2008]] recessions were caused by internal economic forces in Mexico. Trade increased dramatically, as well as FDI; however, as Mexico's [[business cycle]] synced with that of the United States, it was much more vulnerable to external economic pressures.<ref name="Musacchio-2012" /> FDI benefited the Northern and Central regions of Mexico while the Southern region was largely excluded from the influx of investment. The crisis also left the banks mainly in the hands of foreigners.

The PRI's 71-year rule ended when [[Vicente Fox]] of the PAN, the [[National Action Party (Mexico)|National Action Party]], won the election in 2000. Fox and his successor, [[Felipe Calderón]], did not significantly diverge from the economic policies of the PRI governments. They continued to privatize the financial system and encourage foreign investment.<ref name="Laurell-2015" /> Despite significant opposition, [[Enrique Peña Nieto]], president from 2012 to 2018, pushed through legislation that would privatize the [[Petroleum industry in Mexico|oil]] and [[Electricity sector in Mexico|electricity industries]]. These reforms marked the conclusion to the neoliberal goals that had been envisioned in Mexico in the 1980s.<ref name="Laurell-2015" />

==== Brazil ====
{{Main|Economic history of Brazil}}
Brazil adopted neoliberal policies in the late 1980s, with support from the worker's party on the left. For example, tariff rates were cut from 32% in 1990 to 14% in 1994. During this period, Brazil effectively ended its policy of maintaining a closed economy focused on [[import substitution industrialization]] in favor of a more open economic system with a much higher degree of privatization. The market reforms and trade reforms ultimately resulted in price stability and a faster inflow of capital but had little effect on income inequality and poverty. Consequently, mass protests continued during the period.<ref>Edmund Amann, and Werner Baer, "Neoliberalism and its consequences in Brazil." ''Journal of Latin American Studies'' 34.4 (2002): 945–959. [https://www.researchgate.net/profile/Werner_Baer/publication/231930218_Neoliberalism_and_Its_Consequences_in_Brazil/links/5545351f0cf24107d397b0ad.pdf Online]</ref><ref>{{cite journal |last1=Saad-Filho |first1=Alfredo |year=2013 |title=Mass protests under 'left neoliberalism': Brazil, June–July 2013 |journal=[[Critical Sociology]] |volume=39 |issue=5 |pages=657–669 |doi=10.1177/0896920513501906 |s2cid=144667014}}</ref>

=== United Kingdom ===
During her tenure as [[Conservative Party (UK)|Conservative]] Prime Minister from 1979 to 1990, [[Margaret Thatcher]] oversaw a number of neoliberal policies, including [[tax cut|tax reduction]], [[exchange rate]] reform, [[deregulation]], and [[privatisation]].{{sfnp|Steger|Roy|2010|p=50}} These policies were continued and supported by her successor [[John Major]]. Although opposed by the [[Labour Party (UK)|Labour Party]], the policies were, according to some scholars, largely accepted and left unaltered when Labour returned to power in 1997 during the [[New Labour]] era under [[Tony Blair]].<ref name="Handbook144"/><ref>{{cite journal |last=Gray |first=John |date=2004 |title=Blair's Project in Retrospect |journal=[[International Affairs (journal)|International Affairs]] |volume=80 |issue=1 |pages=39–48 |doi=10.1111/j.1468-2346.2004.00364.x |jstor=3569292}}</ref>

The [[Adam Smith Institute]], a United Kingdom–based free-market think tank and lobbying group formed in 1977 which was a major driver of the aforementioned neoliberal policies,{{sfnp|Springer|Birch|MacLeavy|2016|p=[https://books.google.com/books?id=M5qkDAAAQBAJ&pg=PA374 374]}} officially changed its libertarian label to neoliberal in October 2016.<ref>{{cite web |url=https://www.adamsmith.org/blog/coming-out-as-neoliberals |title=Coming Out as Neoliberals |website=The [[Adam Smith Institute]] |date=October 11, 2016}}</ref>

According to economists Denzau and Roy, the "shift from Keynesian ideas toward neoliberalism influenced the fiscal policy strategies of New Democrats and New Labour in both the White House and Whitehall.... Reagan, Thatcher, Clinton, and Blair all adopted broadly similar neoliberal beliefs."<ref>Denzau, Arthur T., and Ravi K. Roy, ''Fiscal Policy Convergence from Reagan to Blair: The Left Veers Right'' ([[Routledge]], 2003). [https://books.google.com/books?id=MIR_AgAAQBAJ&pg=PT16 p. xvi]. {{ISBN|978-0415324137}}.</ref><ref>Daniel Stedman Jones. Chapter 13: "The Neoliberal Origins of the Third Way: How Chicago, Virginia and Bloomington Shaped Clinton and Blair". In Damien Cahill et al. eds. ''The SAGE Handbook of Neoliberalism'' (2018): 167ff. {{doi|10.4135/9781526416001.n14}}</ref>

=== United States ===
{{see also|Reaganomics|Reagan Era|New Democrats (United States)}}
While a number of recent histories of neoliberalism<ref>{{Cite web |last=themetropoleblog |date=June 5, 2019 |title=Neoliberalism: Kim Phillips-Fein and Tracy Neumann Unpack the Knotty Realities and History of the Ubiquitous Term |website=The Metropole |language=en |url=https://themetropole.blog/2019/06/05/neoliberalism-kim-phillips-fein-and-tracy-neumann-unpack-the-knotty-realities-and-history-of-the-ubiquitous-term/ |access-date=September 4, 2020}}</ref><ref>{{Cite book |last=Diamond |first=Andrew |url=https://www.ucpress.edu/book/9780520286498/chicago-on-the-make |title=Chicago on the Make |publisher=[[University of California Press]] |year=2017 |isbn=9780520286498 |language=en}}</ref><ref>{{Cite web |title=Remaking the Rust Belt {{!}} Tracy Neumann |url=https://www.upenn.edu/pennpress/book/15517.html |access-date=September 4, 2020 |website=www.upenn.edu}}</ref> in the United States have traced its origins back to the urban renewal policies of the 1950s, [[Marxism|Marxist]] economic geographer [[David Harvey]] argues the rise of neoliberal policies in the United States occurred during the [[1970s energy crisis]],<ref name=Harvey-Jacobin/> and traces the origin of its political rise to [[Lewis F. Powell Jr.#Powell Memorandum, 1971|Lewis Powell's 1971 confidential memorandum]] to the [[United States Chamber of Commerce|Chamber of Commerce]] in particular.{{sfnp|Harvey|2005|p=43}} A call to arms to the business community to counter criticism of the free enterprise system, it was a significant factor in the rise of conservative and libertarian organizations and think-tanks which advocated for neoliberal policies, such as the [[Business Roundtable]], [[The Heritage Foundation]], the [[Cato Institute]], [[Citizens for a Sound Economy]], [[Accuracy in Academia]] and the [[Manhattan Institute for Policy Research]].{{sfnp|Gerstle|2022|pp=108–110}} For Powell, universities were becoming an ideological battleground, and he recommended the establishment of an intellectual infrastructure to serve as a counterweight to the increasingly popular ideas of [[Ralph Nader]] and other opponents of big business.<ref>Kevin Doogan (2009). ''New Capitalism.'' [[Polity (publisher)|Polity]]. {{ISBN|0745633250}} [https://books.google.com/books?id=YTsXHSMMndIC&pg=PA34 p. 34].</ref><ref>{{cite web |last=Powell |first=Lewis F. Jr. |title=Attack of American Free Enterprise System |website=[[PBS]] |url=https://www.pbs.org/wnet/supremecourt/personality/sources_document13.html |date=August 23, 1971 |access-date=March 1, 2016 |archive-url=https://web.archive.org/web/20120104052451/http://www.pbs.org/wnet/supremecourt/personality/sources_document13.html |archive-date=January 4, 2012 |url-status=dead}}</ref><ref name=Harvey-Jacobin/> The original neoliberals included, among others, [[Michael Kinsley]], [[Charles Peters]], [[James Fallows]], [[Nicholas Lemann]], [[Bill Bradley]], [[Bruce Babbitt]], [[Gary Hart]], and [[Paul Tsongas]]. Sometimes called "[[Atari Democrat]]s", these were the men who helped to remake American liberalism into neoliberalism, culminating in the election of [[Bill Clinton]] in 1992. These new liberals disagreed with the policies and programs of mid-century figures like progressive labor organizer [[Walter Reuther]], economist [[John Kenneth Galbraith]] or even noted historian [[Arthur M. Schlesinger Jr.|Arthur Schlesinger]].<ref>{{Cite magazine |title=The First Neoliberals |url=https://jacobinmag.com/2016/04/chait-neoliberal-new-inquiry-democrats-socialism/ |first=Corey |last=Robin |access-date=April 27, 2021 |magazine=[[Jacobin (magazine)|Jacobin]] |language=en-US}}</ref>

Early roots of neoliberalism were laid in the 1970s during the Nixon administration, with appointment of associates of [[Milton Friedman]] to Departments of Treasury, Agriculture and Justice, and the Council of Economic Advisors and encouraged funding of the [[American Enterprise Institute]] and defunding of the more centrist [[Brookings Institution]],<ref name="Gibbs, David N. 2024">Gibbs, David N. (2024) ''Revolt of the rich: How the politics of the 1970s widened America's class divide.'' Columbia University Press.</ref> and during the [[Presidency of Jimmy Carter|Carter administration]], with deregulation of the [[Motor Carrier Act of 1980|trucking]], banking and [[Airline Deregulation Act|airline industries]],<ref>{{cite web |first=William L. |last=Anderson |title=Rethinking Carter |date=October 25, 2000 |url=https://mises.org/library/rethinking-carter}}</ref><ref>{{cite web |first=Andrew |last=Leonard |date=June 4, 2009 |title=No, Jimmy Carter did it |url=http://www.salon.com/2009/06/04/jimmy_carter_did_it/}}</ref><ref>{{cite web |last=Firey |first=Thomas A. |date=February 20, 2011 |title=A salute to Carter, deregulation's hero |url=http://articles.herald-mail.com/2011-02-20/opinion/28614285_1_jimmy-carter-deregulation-peanut-farmer |access-date=January 20, 2017 |archive-url=https://web.archive.org/web/20170114225036/http://articles.herald-mail.com/2011-02-20/opinion/28614285_1_jimmy-carter-deregulation-peanut-farmer |archive-date=January 14, 2017 |url-status=dead}}</ref> the appointment of [[Paul Volcker]] to chairman of the [[Federal Reserve]]{{sfnp|Stedman Jones|2014|p=5}} as well as increased military spending at the end of his term leading to fiscal austerity in US nonmilitary budget diverting funds away from social programs.<ref name="Gibbs, David N. 2024"/> This trend continued into the 1980s under the [[Presidency of Ronald Reagan|Reagan administration]], which included [[Economic Recovery Tax Act of 1981|tax cuts]], increased defense spending, financial deregulation and [[trade deficit]] expansion.<ref name="Karagiannis"/> Likewise, concepts of [[supply-side economics]], discussed by the Democrats in the 1970s, culminated in the 1980 [[Joint Economic Committee]] report "Plugging in the Supply Side". This was picked up and advanced by the Reagan administration, with Congress following Reagan's basic proposal and cutting federal income taxes across the board by 25% in 1981.<ref>{{cite book |first=Darrell M. |last=West |title=Congress and Economic Policy Making |url=https://books.google.com/books?id=h64et3mOxH8C&pg=PA71 |year=1987 |page=71 |publisher=University of Pittsburgh Pre |isbn=978-0822974352 |via=[[Google Books]]}}</ref>

The [[Presidency of Bill Clinton|Clinton administration]] embraced neoliberalism<ref name="Handbook144"/> by supporting the passage of the [[North American Free Trade Agreement]] (NAFTA), continuing the deregulation of the financial sector through passage of the [[Commodity Futures Modernization Act of 2000|Commodity Futures Modernization Act]] and the repeal of the [[Glass–Steagall Act]] and implementing cuts to the [[Welfare state#United States|welfare state]] through passage of the [[Personal Responsibility and Work Opportunity Act]].<ref name="Karagiannis">{{cite book |editor1-first=Nikolaos |editor1-last=Karagiannis |editor2-first=Zagros |editor2-last=Madjd-Sadjadi |editor3-first=Swapan |editor3-last=Sen |url=https://www.routledge.com/The-US-Economy-and-Neoliberalism-Alternative-Strategies-and-Policies/Karagiannis-Madjd-Sadjadi-Sen/p/book/9780415645058 |title=The US Economy and Neoliberalism: Alternative Strategies and Policies |publisher=[[Routledge]] |date=2013 |isbn=978-1138904910 |page=[https://books.google.com/books?id=aYKfai1RlPYC&pg=PA58 58]}}</ref><ref>{{cite news |url=http://www.democracynow.org/1997/8/25/food_stamps |title=Food Stamps |work=[[Democracy Now]]! |date=August 25, 1997 |access-date=August 16, 2013}}</ref><ref>{{Cite news |first=Alan S. |last=Blinder |title=Alan Blinder: Five Years Later, Financial Lessons Not Learned |url=https://www.wsj.com/articles/SB10001424127887323623304579059070153371410?mod=WSJ_hps_sections_opinion |work=[[Wall Street Journal]] |date=September 10, 2013 |quote=(Blinder summarizing causes of the "Great Recession": "Disgracefully bad mortgages created a problem. But wild and woolly customized derivatives—totally unregulated due to the odious Commodity Futures Modernization Act of 2000—blew the problem up into a catastrophe. Derivatives based on mortgages were a principal source of the reckless leverage that backfired so badly during the crisis, imposing huge losses on investors and many financial firms.")}}</ref> The American historian [[Gary Gerstle]] writes that while Reagan was the ideological architect of the neoliberal order which was formulated in the 1970s and 1980s, it was Clinton who was its key facilitator, and as such this order achieved dominance in the 1990s and early 2000s.{{sfnp|Gerstle|2022|p=1}} The neoliberalism of the Clinton administration differs from that of Reagan as the Clinton administration purged neoliberalism of [[neoconservative]] positions on [[militarism]], family values, opposition to [[multiculturalism]] and neglect of ecological issues.{{sfnp|Steger|Roy|2010|pp=50–51}}{{Disputed inline|Clinton does not neglect ecological issues?|date=August 2016}} Writing in ''[[New York (magazine)|New York]]'', journalist [[Jonathan Chait]] disputed accusations that the [[Democratic Party (United States)|Democratic Party]] had been hijacked by neoliberals, saying that its policies have largely stayed the same since the New Deal. Instead, Chait suggested these accusations arose from arguments that presented a [[false dichotomy]] between free-market economics and socialism, ignoring mixed economies.<ref>{{cite web |last=Chait |first=Jonathan |date=July 16, 2017 |url=https://nymag.com/daily/intelligencer/2017/07/how-neoliberalism-became-the-lefts-favorite-insult.html |title=How 'Neoliberalism' Became the Left's Favorite Insult of Liberals |work=[[New York (magazine)|New York]] |access-date=January 18, 2018}}</ref> American feminist philosopher [[Nancy Fraser]] says the modern Democratic Party has embraced a "progressive neoliberalism", which she describes as a "progressive-neoliberal alliance of financialization plus emancipation".<ref>{{cite web |url=https://www.dissentmagazine.org/online_articles/nancy-fraser-against-progressive-neoliberalism-progressive-populism |title=Against Progressive Neoliberalism, A New Progressive Populism |last=Fraser |first=Nancy |date=February 28, 2017 |website=[[Dissent (American magazine)|Dissent]] |access-date=June 13, 2019}}</ref> Historian [[Walter Scheidel]] says that both parties shifted to promote free-market capitalism in the 1970s, with the Democratic Party being "instrumental in implementing financial deregulation in the 1990s".<ref>{{cite book |last=Scheidel |first=Walter |author-link=Walter Scheidel |title=The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century |publisher=[[Princeton University Press]] |year=2017 |isbn=978-0691165028 |page=[https://books.google.com/books?id=NgZpDQAAQBAJ&pg=PA416 416] |url=http://press.princeton.edu/titles/10921.html |quote=In the United States, both of the dominant parties have shifted toward free-market capitalism. Even though analysis of roll call votes show that since the 1970s, Republicans have drifted farther to the right than Democrats have moved to the left, the latter were instrumental in implementing financial deregulation in the 1990s and focused increasingly on cultural issues such as gender, race, and sexual identity rather than traditional social welfare policies.}}</ref> Historians [[Andrew Diamond (professor)|Andrew Diamond]] and [[Thomas Sugrue]] argue that neoliberalism became a "'dominant rationality' precisely because it could not be confined to a single partisan identity."<ref>{{Cite web |title=Neoliberal Cities |url=https://nyupress.org/9781479832378/neoliberal-cities |access-date=September 4, 2020 |website=[[NYU Press]] |language=en-US}}</ref> Economic and political inequalities in schools, universities, and libraries and an undermining of democratic and civil society institutions influenced by neoliberalism has been explored by Buschman.<ref>{{cite journal |last=Buschman |first=John |date=2020 |title=Education, the Public Sphere, and Neoliberalism: Libraries' Contexts. |journal=[[Library Quarterly]] |volume=90 |number=2 |pages=154–61 |doi=10.1086/707671 |s2cid=216334602}}</ref>

=== Asia-Pacific ===
Scholars who emphasized the key role of the developmental state in the early period of fast industrialization in East Asia in the late 19th century now argue that South Korea, Taiwan and Singapore have transformed from developmental to close-to-neoliberal states. Their arguments are matter of scholarly debate.<ref>{{cite journal |last1=Wade |first1=Robert H. |year=2018 |title=The developmental state: dead or alive?. |url=http://eprints.lse.ac.uk/87356/ |journal=[[Development and Change]] |volume=49 |issue=2 |pages=518–546 |doi=10.1111/dech.12381}}</ref>

==== China ====
{{See also|Chinese economic reform}}
Following the death of [[Mao Zedong]] in 1976, [[Deng Xiaoping]] led the country through far ranging market-centered reforms, with the slogan of [[Moderately prosperous society|Xiǎokāng]], that combined neoliberalism with centralized [[authoritarianism]]. These focused on agriculture, industry, education and science/defense.{{sfnp|Harvey|2005|p=}}

Experts debate the extent to which traditional Maoist communist doctrines have been transformed to incorporate the new neoliberal ideas. In any case, the Chinese Communist Party remains a dominant force in setting economic and business policies.<ref>{{cite journal |first1=Niv |last1=Horesh |first2=Kean Fan |last2=Lim |title=China: an East Asian alternative to neoliberalism? |journal=[[The Pacific Review|Pacific Review]] |volume=30 |number=4 |date=2017 |pages=425–442 |doi=10.1080/09512748.2016.1264459 |s2cid=157838428 |url=http://dro.dur.ac.uk/25972/1/25972.pdf |archive-url=https://web.archive.org/web/20190427115432/http://dro.dur.ac.uk/25972/1/25972.pdf |archive-date=2019-04-27 |url-status=live}}</ref><ref>{{cite journal |last1=Zhou |first1=Yu |last2=Lin |first2=George C.S. |last3=Zhang |first3=Jun |year=2019 |title=Urban China through the lens of neoliberalism: Is a conceptual twist enough?. |journal=[[Urban Studies (journal)|Urban Studies]] |volume=56 |issue=1 |pages=33–43 |doi=10.1177/0042098018775367 |bibcode=2019UrbSt..56...33Z |s2cid=158354394}}</ref> Throughout the 20th century, Hong Kong was the outstanding neoliberal exemplar inside China.<ref>{{cite journal |last1=Tang |first1=Gary |last2=Hau-yin Yuen |first2=Raymond |year=2016 |title=Hong Kong as the 'neoliberal exception'of China: Transformation of Hong Kong citizenship before and after the transfer of sovereignty |journal=[[Journal of Chinese Political Science]] |volume=21 |issue=4 |pages=469–484 |doi=10.1007/s11366-016-9438-7 |s2cid=157215962}}</ref>

==== Taiwan ====
Taiwan exemplifies the impact of neoliberal ideas. The policies were pushed by the United States but were not implemented in response to a failure of the national economy, as in numerous other countries.<ref>{{cite journal |last1=Tsai |first1=Ming-Chang |year=2001 |title=Dependency, the state and class in the neoliberal transition of Taiwan |journal=[[Third World Quarterly]] |volume=22 |issue=3 |pages=359–379 |doi=10.1080/01436590120061651 |s2cid=154037027}}</ref>

==== Japan ====
{{See also|Developmental state}}
Neoliberal policies were at the core of the leading party in Japan, the [[Liberal Democratic Party (Japan)|Liberal Democratic Party]] (LDP), after 1980. These policies had the effect of abandoning the traditional rural base and emphasizing the central importance of the Tokyo industrial-economic region.<ref>{{cite journal |last1=Tsukamoto |first1=Takashi |year=2012 |title=Neoliberalization of the developmental state: Tokyo's bottom-up politics and state rescaling in Japan |journal=[[International Journal of Urban and Regional Research]] |volume=36 |issue=1 |pages=71–89 |doi=10.1111/j.1468-2427.2011.01057.x}}</ref> Neoliberal proposals for Japan's agricultural sector called for reducing state intervention, ending the protection of high prices for rice and other farm products, and exposing farmers to the global market. The 1993 [[Uruguay Round]] of the [[General Agreement on Tariffs and Trade]] negotiations opened up the rice market. Neoconservative leaders called for the enlargement, diversification, intensification, and corporatization of the farms receiving government subsidies. In 2006, the ruling LDP decided to no longer protect small farmers with subsidies. Small operators saw this as favoritism towards big corporate agriculture and reacted politically by supporting the [[Democratic Party of Japan]] (DPJ), helping to defeat the LDP in nationwide elections.<ref>{{cite journal |last1=Miyake |first1=Yoshitaka |year=2016 |title=Neoliberal Agricultural Policies and Farmers' Political Power in Japan |journal=Yearbook of the Association of Pacific Coast Geographers |volume=78 |issue=1 |pages=216–239 |doi=10.1353/pcg.2016.0012 |s2cid=157682364}}</ref>

==== South Korea ====
In South Korea, neoliberalism had the effect of strengthening the national government's control over economic policies. These policies were popular to the extent that they weakened the historically very powerful [[chaebol]] family-owned conglomerates.<ref>{{cite journal |first=David |last=Hundt |title=Neoliberalism, the developmental state and civil society in Korea |journal=[[Asian Studies Review]] |volume=39 |number=3 |date=2015 |pages=466–482 |doi=10.1080/10357823.2015.1052339 |s2cid=153689882 |url=https://www.researchgate.net/publication/279860946}}</ref>

==== India ====
In India, Prime Minister [[Narendra Modi]] took office in 2014 with a commitment to implement neoliberal economic policies. This commitment would shape national politics and foreign affairs and put India in a race with China and Japan for economic supremacy in East Asia.<ref>{{cite journal |last1=Rej |first1=Abhijnan |year=2017 |title=Beyond India's Quest for a Neoliberal Order |journal=[[The Washington Quarterly]] |volume=40 |issue=2 |pages=145–161 |doi=10.1080/0163660X.2017.1328930 |s2cid=157335443}}</ref><ref>{{cite book |first=N. S. |last=Sisodia |chapter=Economic Modernisation and the Growing Influence of Neoliberalism on India's Strategic Thought |title=Indian Grand Strategy: History, Theory, Cases |editor1-first=Kanti |editor1-last=Bajpai |editor2-first=Saira |editor2-last=Basit |editor3-first=V. |editor3-last=Krishnappa |publisher=[[Routledge]] |location=New Delhi |date=2014 |pages=176–199}}</ref>

==== Australia ====
In Australia, neoliberal economic policies (known at the time as "[[economic rationalism]]"<ref>{{cite book |last=Pusey |first=M. |date=2003 |title=Economic rationalism in Canberra: A nation-building state changes its mind |publisher=[[Cambridge University Press]]}}</ref> or "economic fundamentalism") have been embraced by governments of both the [[Australian Labor Party|Labor Party]] and the [[Liberal Party of Australia|Liberal Party]] since the 1980s. The Labor governments of [[Bob Hawke]] and [[Paul Keating]] from 1983 to 1996 pursued a program of economic reform focused on [[economic liberalisation]]. These governments privatised government corporations, deregulated factor markets, floated the [[Australian dollar]] and reduced trade protections.<ref>{{cite web |last=Cameron |first=Clyde R. |url=http://www.historycooperative.org/journals/lab/86/cameron.html |title=How the Federal Parliamentary Labor Party Lost Its Way |archive-url=https://archive.today/20120803004406/http://www.historycooperative.org/journals/lab/86/cameron.html |archive-date=August 3, 2012}}</ref> Another key policy was [[Prices and Incomes Accord|the accords]] which was an agreement with unions to agree to a reduction in strikes, wage demands and a real wage cut in exchange for the implementation of social policies, such as [[Medicare (Australia)|Medicare]] and [[Superannuation in Australia|superannuation]].<ref>{{cite web |last1=Forsyth |first1=Anthony |last2=Holbrook |first2=Carolyn |title=Australian politics explainer: the Prices and Incomes Accord |url=https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622 |website=The Conversation |date=24 April 2017 |publisher=The Conversation Media Group |access-date=November 9, 2022}}</ref> The [[Howard government]] continued these policies, whilst also acting to reduce union power, cut welfare and reduce government spending.<ref>{{cite web |last1=Duncan |first1=Alan |last2=Cassells |first2=Rebecca |title=Government spending explained in 10 charts; from Howard to Turnbull |url=https://theconversation.com/government-spending-explained-in-10-charts-from-howard-to-turnbull-77158 |website=[[The Conversation (website)|The Conversation]] |date=8 May 2017 |publisher=The Conversation Media Group |access-date=November 9, 2022}}</ref>

Keating, building on policies he had introduced while federal treasurer, implemented a compulsory [[Superannuation in Australia|superannuation guarantee]] system in 1992 to increase [[national savings]] and reduce future government liability for old age pensions.<ref>{{Cite web |last1=Neilson |first1=L. |last2=Harris |first2=B. |url=http://www.aph.gov.au/Library/pubs/BN/2008-09/Chron_Superannuation.htm |title=Chronology of superannuation and retirement income in Australia |archive-url=https://web.archive.org/web/20110909175528/http://www.aph.gov.au/Library/pubs/BN/2008-09/Chron_Superannuation.htm |archive-date=September 9, 2011 |website=Parliamentary Library |location=Canberra |date=July 2008}}</ref> The financing of universities was deregulated, requiring students to contribute to [[Tertiary education fees in Australia|university fees]] through a repayable loan system known as the [[Higher Education Contribution Scheme]] (HECS) and encouraging universities to increase income by admitting full-fee-paying students, including foreign students.<ref>[[Simon Marginson|Marginson S]] ''[http://www.onlineopinion.com.au/view.asp?article=3310 Tertiary Education: A revolution to what end?]'' Online Opinion, 5 April 2005</ref> The admission of domestic full-fee-paying students to public universities was abolished in 2009 by the [[Rudd Government (2007–10)|Rudd Labor government]].<ref name="Ministers Media Centre, Australian Government 2008">{{cite web |title=Government Delivers on Promise to Phase Out Full Fee Degrees |website=Ministers' Media Centre, Australian Government |date=October 29, 2008 |url=https://ministers.jobs.gov.au/gillard/government-delivers-promise-phase-out-full-fee-degrees |access-date=July 10, 2018 |archive-date=April 21, 2019 |archive-url=https://web.archive.org/web/20190421041353/https://ministers.jobs.gov.au/gillard/government-delivers-promise-phase-out-full-fee-degrees |url-status=dead}}</ref>

Immigration to the mainland capitals by refugees have seen capital flows follow soon after, such as from war-torn [[Lebanon]] and [[Vietnam]]. Later economic migrants from mainland [[China]] also, up to recent restrictions, had invested significantly in the property markets.<ref>{{cite news |title=Diversity helped Australia weather the resources bust |url=https://www.economist.com/special-report/2018/10/25/diversity-helped-australia-weather-the-resources-bust |access-date=July 5, 2019 |publisher=[[The Economist]] |date=October 25, 2018 |quote=Building work had reached a nadir in the first quarter of 2012, when construction firms completed projects worth A$20bn. In the last quarter of 2017, that reached A$29bn. Foreigners accounted for a good share of their custom: the Foreign Investment Review Board approved A$72bn-worth of residential-property purchases in 2016, up from A$20bn in 2011. At its peak, foreign buying accounted for a quarter of residential-property sales in the two big cities.}}</ref>{{citation needed|reason=Economist article only mentions foreign investment generally, and not Chinese investment specifically|date=July 2019}}

==== New Zealand ====
{{See also|Rogernomics}}
In New Zealand, neoliberal economic policies were implemented under the [[Fourth Labour Government of New Zealand|Fourth Labour Government]] led by Prime Minister [[David Lange]]. These neoliberal policies are commonly referred to as [[Rogernomics]], a portmanteau of "Roger" and "economics", after Lange appointed [[Roger Douglas]] minister of finance in 1984.<ref>{{Cite book |title=My Life |last=Lange |first=David |author-link=David Lange |publisher=Viking |year=2005 |isbn=978-0-670-04556-3 |pages=143}}</ref>

Lange's government had inherited a severe balance of payments crisis as a result of the deficits from the previously implemented two-year freeze on wages and prices by preceding Prime Minister [[Robert Muldoon]], who had also maintained an [[exchange rate]] many economists now believe was unsustainable.<ref>{{Cite book |title=When Schools Compete: A Cautionary Tale |last1=Fiske |first1=Edward B. |last2=Ladd |first2=Helen F. |publisher=[[Brookings Institution Press]] |year=2000 |isbn=978-0-8157-2835-1 |location=Washington, D.C. |pages=[https://archive.org/details/isbn_5458999018950/page/27 27] |url=https://archive.org/details/isbn_5458999018950/page/27}}</ref> The inherited economic conditions lead Lange to remark "We ended up being run very similarly to a Polish shipyard."<ref>{{Cite news |url=https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10340844 |title=David Lange, in his own words |date=August 15, 2005 |work=[[The New Zealand Herald]]}}</ref> On 14 September 1984, Lange's government held an Economic Summit to discuss the underlying problems with [[Economy of New Zealand|New Zealand's economy]], which lead to calls for dramatic economic reforms previously proposed by the [[New Zealand Treasury|Treasury Department]].<ref>{{Cite book |title=Revolution: New Zealand from Fortress to Free Market |last=Russell |first=Marcia |publisher=[[Hodder Moa Beckett]] |year=1996 |isbn=978-1869584283 |pages=75}}</ref>

A reform program consisting of [[deregulation]] and the removal of [[tariffs]] and [[subsidies]] was put in place. This had an immediate effect on [[New Zealand's agricultural community]], who were hit hard by the loss of subsidies to farmers.<ref name="Russell-1996">{{Cite book |title=Revolution: New Zealand from Fortress to Free Market |last=Russell |first=Marcia |publisher=[[Hodder Moa Beckett]] |year=1996|isbn=978-1869584283 |pages=80}}</ref> A superannuation surcharge was introduced, despite having promised not to reduce [[superannuation]], resulting in [[Labour Party (New Zealand)|Labour]] losing support from the elderly. The financial markets were also deregulated, removing restrictions on [[interest rate|interests rates]], lending and foreign exchange. In March 1985, the New Zealand dollar was [[Floating exchange rate|floated]].<ref>{{Cite web |url=http://www.TeAra.govt.nz/en/cartoon/33456/floating-the-new-zealand-dollar |title=Reserve Bank – Reserve Bank, 1936 to 1984 |last=Singleton |first=John |date=June 20, 2012 |website=Te Ara Encyclopedia}}</ref> Additionally, a number of government departments were converted into state-owned enterprises, which lead to significant job losses: 3,000 within the Electricity Corporation; 4,000 within the Coal Corporation; 5,000 within the Forestry Corporation; and 8,000 within the New Zealand Post.<ref name="Russell-1996" />

New Zealand became a part of the global economy. The focus in the economy shifted from the productive sector to finance as a result of zero restrictions on overseas money coming into the country. Finance capital outstripped industrial capital and the manufacturing industry suffered approximately 76,000 job losses.<ref>{{Cite book |title=I See Red |last=Bell |first=Judith |publisher=[[Awa Press]] |year=2006 |location=Wellington |pages=22–56}}</ref>

=== Middle East ===
Beginning in the late 1960s, a number of neoliberal reforms were implemented in the Middle East.<ref>{{Cite book |title=Over-stating the Arab state : politics and society in the Middle East |last=Ayubi |first=Nazih N. |date=1995 |publisher=[[I.B. Tauris]] |isbn=9781441681966 |location=London |pages=329–395 |oclc=703424952}}</ref><ref>{{Cite book |title=The Arab State and Neo-liberal Globalization: the Restructuring of State Power in the Middle East |last=Laura |first=Guazzone |date=2009 |publisher=[[Garnet Publishing]] (UK) Ltd |isbn=9780863725104 |location=New York |oclc=887506789}}</ref> For instance, [[Egypt]] is frequently linked to the implementation of neoliberal policies, particularly with regard to the 'open-door' policies of President [[Anwar Sadat]] throughout the 1970s,<ref>{{Cite book |title=The Egypt of Nasser and Sadat: the political economy of two regimes |url=https://archive.org/details/egyptofnassersad0000wate |url-access=registration |last=Waterbury |first=John |publisher=[[Princeton University Press]] |year=1983 |isbn=9781400857357 |location=Princeton, New Jersey |oclc=889252154}}</ref> and [[Hosni Mubarak]]'s successive economic reforms between 1981 and 2011.<ref>{{Cite book |title=The autumn of dictatorship: fiscal crisis and political change in Egypt under Mubarak |last1=Sulaymān |first1=Samīr |last2=Daniel |first2=Peter |publisher=[[Stanford University Press]] |year=2011 |isbn=9780804777735 |location=Stanford, California |oclc=891400543}}</ref> These measures, known as ''[[Infitah|al-Infitah]]'', were later diffused across the region. In Tunisia, neoliberal economic policies are associated with former president and ''de facto'' dictator<ref>{{cite news |last1=Foreign Staff of the Telegraph |title=Tunisia's Ben Ali: Soldier who turned into dictator |url=https://www.telegraph.co.uk/news/worldnews/africaandindianocean/tunisia/8586165/Tunisias-Ben-Ali-Soldier-who-turned-into-dictator.html |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/news/worldnews/africaandindianocean/tunisia/8586165/Tunisias-Ben-Ali-Soldier-who-turned-into-dictator.html |archive-date=January 11, 2022 |url-access=subscription |url-status=live |access-date=July 5, 2019 |publisher=[[The Daily Telegraph]] |date=June 20, 2011}}{{cbignore}}</ref> [[Zine El Abidine Ben Ali]];<ref>{{Cite book |title=Economic and political change in Tunisia: from Bourguiba to Ben Ali |last=Murphy |first=Emma |publisher=[[St. Martin's Press]] in association with [[University of Durham]] |year=1999 |isbn=978-0312221423 |location=New York, N.Y. |oclc=40125756}}</ref> his reign made it clear that economic neoliberalism can coexist and even be encouraged by [[authoritarianism|authoritarian]] states.<ref>{{Cite journal |last=Tsourapas |first=Gerasimos |date=2013 |title=The Other Side of a Neoliberal Miracle: Economic Reform and Political De-Liberalization in Ben Ali's Tunisia |doi=10.1080/13629395.2012.761475 |journal=[[Mediterranean Politics]] |volume=18 |issue=1 |pages=23–41 |s2cid=154822868}}</ref> Responses to globalisation and economic reforms in the [[Gulf Cooperation Council|Gulf]] have also been approached via a neoliberal analytical framework.<ref>{{Cite book |title=Capitalism and class in the Gulf Arab states |last=Hanieh |first=Adam |publisher=[[Palgrave Macmillan]] |year=2011 |isbn=9780230119604 |edition=1st |location=New York |oclc=743800844}}</ref>

=== International organizations ===
{{see also|Structural adjustment}}
The adoption of neoliberal policies in the 1980s by international institutions such as the [[International Monetary Fund]] (IMF) and the [[World Bank]] had a significant impact on the spread of neoliberal reform worldwide.{{sfnp|Stedman Jones|2014|p=8}} To obtain loans from these institutions, developing or crisis-wracked countries had to agree to institutional reforms, including [[privatization]], [[trade liberalization]], enforcement of strong [[private property]] rights, and reductions to [[government spending]].<ref>{{cite book |last1=Williamson |first1=John |title=Latin American Adjustment: How Much Has Happened? |date=April 1990 |publisher=Peterson Institute for International Economics |isbn=978-0881321258 |url=https://www.piie.com/commentary/speeches-papers/what-washington-means-policy-reform |access-date=July 25, 2019 |chapter=Chapter 2}}</ref>{{sfnp|Harvey|2005|p=}} This process became known as [[structural adjustment]], and the principles underpinning it the [[Washington Consensus]].<ref>{{cite web |url=http://www.iie.com/content/?ID=1#topic3 |title=A Guide To John Williamson's Writing |last1=Williamson |first1=John |website=www.piie.com |publisher=[[Peterson Institute for International Economics]] |access-date=April 24, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20150705172400/http://www.iie.com/content/?ID=1#topic3 |archive-date=July 5, 2015}}</ref>

=== European Union ===
{{see also |History of the European Union}}
The [[European Union]] (EU), created in 1992, is sometimes considered a neoliberal organization, as it facilitates [[free trade]] and [[freedom of movement]], erodes national [[protectionism]] and limits national [[subsidies]].<ref name="SPERI 2017">{{cite web |first=Keshia |last=Jacotine |title=The split in neoliberalism on Brexit and the EU |website=SPERI |date=June 22, 2017 |url=http://speri.dept.shef.ac.uk/2017/06/22/the-split-in-neoliberalism-on-brexit-and-the-eu/ |access-date=June 18, 2018 |archive-url=https://web.archive.org/web/20180618175603/http://speri.dept.shef.ac.uk/2017/06/22/the-split-in-neoliberalism-on-brexit-and-the-eu/ |archive-date=June 18, 2018 |url-status=dead}}</ref> Others underline that the EU is not completely neoliberal as it leaves the development of [[welfare spending|welfare policies]] to its constituent states.<ref name="Milward 2000 p.">{{cite book |last=Milward |first=Alan S. |author-link=Alan Milward |title=The European rescue of the nation-state |publisher=[[Routledge]] |location=London, New York |year=2000 |isbn=9780203982150 |oclc=70767937}}{{page needed|date=June 2018}}</ref><ref name="Warlouzet 2018 p.">{{cite book |last=Warlouzet |first=Laurent |title=Governing Europe in a globalizing world : neoliberalism and its alternatives following the 1973 oil crisis |publisher=[[Routledge]], [[Taylor & Francis]] Group |location=London, New York |year=2017 |isbn=9781138729421 |oclc=993980643}}{{page needed|date=June 2018}}</ref>