Abstract

This essay represents an attempt to determine, first, whether or not the neoliberal principles and policies that have largely shaped the global economy over the past several decades in fact have their basis, as they are often thought to have, in classical political economy, particularly that of Adam Smith as it is developed in his Wealth of Nations, and, second, whether or not they in fact serve to promote, as they are often argued to do, the prosperity of individuals, particularly those living in developing nations. In both cases, this attempt depends heavily upon and benefits greatly from the work of Cambridge institutional economist Ha-Joon Chang. Ultimately, the essay presents a case, first, for the proposition that these neoliberal principles and polices depart significantly from those advocated by Adam Smith and, second, for the proposition that neither of these alternatives is best suited to promote the prosperity of individuals living in developing nations. In addition, it presents a brief account of why neoliberal policies have been so widely adopted by developing nations today as well as a brief account of how they might come to be replaced by better ones in the future.