There is a definite link between economic liberalization and fascism as the process of economic liberalization has had a huge impact on people live all over the globe. In order to asses this impact, and  the link between two, it is essential to first define our understanding of economic liberalization and fascism, which I would like to do at the beginning of my statement.

Economic Liberalization: Economic liberalization has been a key component of the process of globalization. This process is based on the ideology of “neo liberalism”. This ideology was pushed for by what has become known as the “Washington consensus”: the IMF, the World Bank, and the US Treasury. The basic ideas behind “neo liberalism” are:

  1. Country should liberalize and open their economies to foreign trade and investment and stop protecting their own industries.

  2. Corporate taxes should be reduced since they are seen to restrict foreign investment.

  3. Countries should adopt open-door policies on profit repatriation by transnational companies.

  4. Private sector involvement and investment in state-run enterprises and services should be encouraged.


Robert O Paxton defines Fascism as “A form of  political behavior marked by obsessive preoccupation with community decline, humiliation or victimhood and by compensatory cults of unity, energy and purity, in which a mass-based party of committed nationalist militants, working in uneasy but effective collaboration with traditional elites, abandons democratic liberties and pursues with redemptive violence and without ethical or legal restraints goals of internal cleansing and external expansion”. The ideologies behind fascism are:

  1. Fascism seeks to incorporate or co-opt private ownership into the state apparatus through public-private partnership.

  2. Fascist ideology tends to be chauvinistically nationalist, stressing a particularistic allegiance to one’s country, culture, or ethnicity along with this goes a suspicion of rationalism, a preference for economic autarky, and a view of life as one of inevitable but glorious struggle.

  3. Fascism cultivates a “folksy” man of the people, “pragmatism over principles”, “heart over head,” “pay no attention to those pointy-headed intellectuals” rhetorical style.

After knowing the ideologies, consider countries as members of the family earth as we are the members of our family  as one member of our family depends somewhere  over other in the same context members of earth family banks upon other somewhere. Take the current burning issue of American financial crisis that caused global finance meltdown now reached Indian shore i.e. airlines are seeking for $1bn bailout, the collapse of the US housing finance market, the collapse of the Lehman Brother, American International Group has shaken the roots of global economy. Now what should US do? Do they follow fascism ideology of self dependent or they follow “neo liberalism policy” of opening the economic doors with other economically stable country as compared, that is  what the nuke deal is performing here, this nuke deal is really going to push some impact over America’s economy. In defence also now US wants to be India’s partner recently Pentagon has notified the US congress of a possible sale of harpoon anti-ship missiles for $170 million. So what can we get from it do we follow fascism become self independent state or globalization. Consider it (if we follow fascism) also from the evidence of Italy’s regime under Benito Mussolini who came to power in 1922 and transformed the country’s economy along fascist ideology. Until 1925 the country enjoyed modest growth but structural weaknesses increased inflation and the currency slowly fell (1922 L90 t0 £1, 1925 L145 to £1). In 1925 there was a great increase in speculation and short runs against the lira. The world wide depression of the early 1930’s hit Italy very hard starting in 1931. As industries came close to failure they were bought out by the banks in a largely illusionary bailout, the assets used to fund the purchases were largely worthless. This led to a financial crisis peaking in 1932 and major government intervention. In 1929 -39 the Italian economy grew by 16%, roughly half the growth rate of the earlier liberal period. Annual rates were 0.5% lower than pre-war rates and the annual rate of growth of value was 1% lower.

Conclusion: So by these two evidences that I kept here, there is no ambiguity in deciding Does Economic Liberalization and Fascism grow together?  Obviously no. Today’s scenario is of globalization rather to become self-restraint in the sense isolate from other, Developing countries can’t become developed without help of developed countries. As India is seeking to purchase nuke fuel from developed countries to attain it’s goal of 2020, and how can be this feasible only if India opens economic doors rather self-restraint, i.e. following “neo liberalism” rather “fascism” ideology. Finally, they don’t grow together.


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