Let us treat liberalism as ‘an ideology based on a commitment to individualism, freedom, toleration and consent.1
The liberal theory of the role, its functions and the nature of state power would invariably focus on:
- Ensuring, protecting and enlarging individual freedom
- Limiting the role and functions of the State
- Allowing state interference only when it helps an individual gain more liberty and freedom
- Making individuals the source of State and governmental power
- Advocating a doctrine of a limited political obligation
Within this broad focus, however, along with the changing notion of individual liberty and freedom, the liberal tradition has journeyed through changing notions of the State and its role. Three distinct phases or streams of liberal tradition can be identified. These are: (i) Negative liberalism or theory of laissez-faire individualism which is also known as classical liberalism, (ii) Positive liberalism or welfare liberalism, and (iii) Neo-liberalism or libertarianism. At the outset, the distinguishing features of these three phases and their main advocates can be listed as shown in Table 4.1.
Table 4.1 Phases or Streams of Liberal Tradition
| Phases of Advocates | Liberalism | Features |
|---|---|---|
| Negative Liberalism | Political and philosophical perspective—John Locke, Jeremy Bentham, Herbert Spencer, Tom Paine, J. S. MillEconomic perspective—Physiocrats, Adam Smith, David Ricardo, Thomas | Inalienable natural rights of individual of life, liberty and property (Locke, Paine)Sphere of individual action defined and demarcated in political (Locke, Mill) and economic activity (Smith, Ricardo, Malthus)Individual liberty as absence of interference from the State or external regulation—negative libertyConcept of atomic or possessive individual—individual as proprietor of their persons and capacity, self-sufficient and owe nothing to anyone or society (Hobbes, Locke and Smith)State as ‘necessary evil’ (Paine), utility provider for happiness of the greatest number (Bentham) with minimal and limited roleLaissez-faire or economic liberalism—self-regulated economic activity by individuals as best guarantee of general prosperityCapitalist-market economy and liberal democratic political system |
| Positive Liberalism | Political and philosophical perspective—J. S. Mill, T. H. Green, L. T. Hobhouse, R. H. Tawney, J. A. Hobson, H. J. Laski, R. M. MacIver, Ernest Barker, C. B. Macpherson, John Rawls, J. W. ChapmanEconomic pers pective—J. M. Keynes, J. K. Galbraith, Joseph Stiglitz, Amartya Sen | Individual liberty not merely absence of interference and external regulation but condition of self-development and moral development (Mill, Green, Tawney, Laski)—positive libertyRelationship between liberty and equality and economic freedom to be balanced (Tawney, Barker, Laski)State not a necessary evil but an agency of common or public good and welfareInterventionist government and social and economic regulationMore emphasis on ‘moral freedom’ (Macpherson), ‘distributive justice’ (Rawls, Chapman), Public Good (Stiglitz), expansion of capabilities (Sen) |
| Neo-Liberalism or Libertarianism | Political and philosophical perspective—Isaiah Berlin, Robert NozickEconomic perspective—F. A. Hayek, Milton Friedman | Minimalist and night watchman statePriority to economic liberty—economic liberty includes political liberty (Friedman, Nozick)Liberty as absence of coercionNo relationship between liberty and equality or justiceNo welfare state |
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