liberal economic system

1. LIBERAL ECONOMIC SYSTEM
By: Dhera Agung Dharmawan

2. The basic theories of
economic liberalism were first
laid out by Adam Smith of
Scotland in his book
"An Inquiry into the Nature
and Causes of the Wealth of
Nations,“
which was published in 1776.

3. WHAT IS LIBERAL
ECONOMIC SYSTEM ?
Liberal economic system is
economic system where the
management of the
economy regulated by
market forces. This
economic system requires
the existence of individual
freedom in economic
activity. That is, each
individual recognized and
they are free to compete. On
the other hand,
Why ?
The participation of the
government in economic
activities is very limited.

4. The characteristics of Liberal
Economic System
o Implementing a system of free competition.
o Economic activity intended for profit maximization (profit
oriented).
o The participation of the government in economic activities is very
limited.
o Activities are always considering the market situation.
o The market economy is the basis of every action.
o These prices are determined by market forces.

5.  Economic activity more fast progressing because the
competition.
 Evoking initiative and creativity in managing the
economy, because the public no longer need to wait for
instruction / command of the government.
 High efficiency and effectiveness, as any action based
economy for profit motive.

6. Weakness of Liberal Economic
System:
 A lot of arise monopoly practices that
harm public
 Equity income is difficult because the free
competition .
 The existence of the gap between the rich
and the poor in the absence of income
distribution.

7. The countries that use liberal economic system
I. In America :USA, Argentina, Bolivia, Brazil, Chile, Cuba, Colombia, Ecuador, Honduras,
Canada, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela, Aruba,
Bahamas, Dominican Republic, Greenland, Grenada, Costa Rica, Puerto Rico, and
Suriname.
II. In Europe : America Albania, Armenia, Austria, Belgium, Bulgaria, Croatia, Cyprus,
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Iceland, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Netherlands,
Norway , Poland, Portugal, Romania, Russia, Serbia and Montenegro, Slovakia,
Slovenia, Spain, Sweden, Switzerland, Ukraine and United Kingdom.
III. In Asia : India, Iran, Israel, Jepang, Korea Selatan, Filipina, Taiwan, Thailand dan Turki.
IV. In Africa :Egypt, Senegal and South Africa, Algeria, Angola, Benin, Burkina Faso, cape
Verde, Côte d'Ivoire, Equatorial Guinea, Gambia, Ghana, Kenya, Malawi, Morocco,
Mozambique, Seychelles, Tanzania, Tunisia, Zambia and Zimbabwe.
V. in the islands of Oceania : Australia and New Zealand.

8. Thank you for
your attention

9. THE REFERENCES
 http://goldmanage.blogspot.com/2010/05/gain-and-weakness-of-liberal-
economy.html
 http://ana-ekonomi.blogspot.com/2010/05/sistem-ekonomi-liberal.html
 http://id.wikipedia.org/wiki/Ekonomi_liberal
 http://ashyrismail.blogspot.com/2012/10/liberal-economic-system-free-
fight.html
 http://www.ehow.com/info_8776840_economic-liberalism.html
 http://www.hockeyarenas.com/berntpv/briefingpaper/papers/13.htm