One thing that serves as an agent in free-market society is through liberalization in the economy. It requires the involvement of people as they are the ones who will be affected by the said phenomenon. Collectivism, as opposed to liberalism, requires also the participation of different sectors in the society in a collective manner, it is a product of the western world to organize the actors who will act as the main participants in one nation. The reason for the rampant collectivist ideas are viewed by Dr. Razeen Sally as similar or includes nationalism, socialism and communism were spread through trade, colonial quests, and Christian missionary activities. It is described by Sally that these ideas of organizing the actors in the society were originated from the West and suddenly spread worldwide through different means.
As stated above, the way from which liberalism sprung is similar to that of its antipodal system. However, it is a fact that their nature is different. Economic liberalization serves as the most important part in achieving free-market society as it allows individual to decide on their economic interest without the intervention of the state, this thought is based on the readings provided by Prof. Frankel, a Harvard University professor. The society will not achieve the free-market system if economic liberalization will be left behind. It is termed as free-market for the reason that it would allow, for example, if not to eradicate, at least to reduce the tariffs lay on top of goods exported or imported in a certain country. The reduction in tariffs which would also mean free trade exhibits the economic liberalization in the face of international trade. This act is just one of those many ways wherein economic liberalization shouts its connection to a free-market economy.
According to Franz Josef Stegmann, there are four points that describe the idea of classical economic liberalism. These are the order of the economy is said to be “natural, the freedom of ideas expressed individually, “altruism of egoism”, and competition in the economy that serves as the steering wheel for it to grow. The four ideas explain the importance of economic liberalism in achieving the free-market economy. One described as it is ‘natural’ in a sense for it is under the influence of the philosophy of deism.
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Believing that the state -in relation to liberalism- need not to intervene in its natural system in terms of economic activities, if it happens that the state will force the intervention, surely it will fall into disorder. It is the same as if the state will control the economic freedom of an individual in a free-market society, every individual will be obliged to meet the standard of the state in terms of putting tariffs, prices, its number, etc. in every commodity that will go beyond borders. Another is the working competition that serves as the “steering wheel of the economy”, the need for obtaining a monopoly is an example. Due to this “steering wheel”, a classical view of economic liberalism has developed and grown into what is called capitalism.
Just to put things clear, a free-market economy does not totally hinder the intervention of the state. Let us put it in an example, an economy that is capitalist has a huge free-market system that is based on the “free price system” and “private property”. Nevertheless, the support from the government is largely needed to promote the competitiveness of the market internationally and to address the inequalities which serve as an outcome of a free-market system. Thus, to neglect the role of the state in the free-market society is not advisable for this sole reason. The intervention of the state is not totally banned or unneeded, only it has its limitations when it comes to the system an economy practiced.
It is observed that the state and the free-market system has been connected as it is with economic liberalism. It is sufficed to say that, whenever there exists free-market economy there would always be economic liberalism that flies around the corner that causes it to happen.
