.V Comparative Politics
Economic Liberalism: made by Adam smith advocates minimal interference by government in the economy, though it does not necessarily oppose the state's provision of a few basic public goods. These theories began in the eighteenth century with the then-startling claim that if everyone is left to their own economic devices instead of being controlled by the state, then the result would be a harmonious and more equal society of ever-increasing prosperity Private property and individual contracts form the basis of liberalism. The early theory was based on the assumption that the economic actions of individuals are largely based on self-interest, (invisible hand) and that allowing them to act without any restrictions will produce the best results, (spontaneous order) provided that at least minimum standards of public information and justice exist, e.g., no-one should be allowed to coerce or steal.
While economic liberalism favors markets unfettered by the government, it maintains that the state has a legitimate role in providing public goods. For instance, Adam Smith argued that the state has a role in providing roads, canals, schools and bridges that cannot be efficiently implemented by private entities. However, he preferred that these goods should be paid proportionally to their consumption (e.g. putting a toll). In addition, he advocated retaliatory tariffs to bring about free trade, and copyrights and patents to encourage innovation.
• A mixed economy consisting of both private enterprise and government-owned or subsidized programs of education, healthcare, child care and related services for all citizens.
• Government bodies that regulate private enterprise in the interests of workers, consumers and fair competition.
• Advocacy of fair trade over free trade.
• A value-added and/or progressive taxation system to fund government expenditure.
3.Dependency theory is a body of social science...