A set of economic and political strategies emphasizes deregulation, privatization, free trade, and reduced government spending. This framework prioritizes market-based solutions, believing that minimal intervention fosters economic growth and efficiency. For example, the North American Free Trade Agreement (NAFTA), which eliminated tariffs and trade barriers between the United States, Canada, and Mexico, exemplifies principles of this framework by promoting free trade and reducing governmental control over commerce.
The significance of this approach lies in its profound influence on global economic landscapes and patterns of development. Its proponents argue that it generates wealth and improves living standards through increased competition and innovation. Historically, it gained prominence in the late 20th century as a response to perceived inefficiencies in state-controlled economies and as a way to promote globalization.