Economic Liberalism and the Management of the Recent Global Crisis: Lessons for Africa

Abstract

The efficiency of the free market system in allocating resources and in regulating itself has become a received doctrine in practically all capitalist nations. But the recent global financial crisis and the resultant government interventions to salvage the economies of many nations have generated much debate on the continued relevance of the free market and the wisdom of government ‘intrusion’. This paper revisits the free market as propagated by Adam Smith and examines the role of government in present day circumstances. Drawing from the African experience, the paper concludes that the free market system and government involvement in the economy can complement each other provided there is the capacity for determining the appropriate mix that would deliver the maximum good to society.

Keywords: Economy, Management, Crisis, Liberalism, Free Market