The term describes a set of economic and political policies that emphasize free market principles, deregulation, privatization, and reduced government intervention in the economy. These policies often aim to promote economic growth through competition and individual responsibility. An example would be a country selling off its state-owned utilities to private companies, leading to market-driven pricing and potentially increased efficiency, but also potentially leading to higher costs for consumers.
Understanding this concept is crucial in human geography because it significantly shapes global economic landscapes, trade patterns, and development strategies. Its implementation can lead to increased foreign investment and economic expansion in some regions, while simultaneously exacerbating income inequality and social disparities in others. Historically, its rise to prominence in the late 20th century has reshaped relationships between states and their citizens, influencing labor markets, social welfare programs, and access to essential services.
