5.

4: Policies and Economic Liberalization

Unit 5: Political and Economic Changes and Development

Directions: Read each topic overview and then complete the corresponding tasks. Answers
should be done in complete and multiple sentences.

Lesson Plan: This is an inquiry-based lesson. Students are given the prompt and must work
through it, asking questions as they go along. Students will be assessed based on their
responses.

Objectives:
1) Describe economic and political liberalization policies
2) Explain the adoption of and consequences associated with economic liberalization
policies

3.D.1. Economic liberalization occurs when a state reduces its economic role and embraces
free market mechanisms such as eliminating subsidies and tariffs, privatizing
government-owned industries, and opening the economy to foreign direct investment.

1. Research an example of a course country that has eliminated subsidies or tariffs,

describe the example, and explain how it connects to economic liberalization.
Hyperlink your source as well.

2. Research an example of a course country that has privatized government-owned

industries, describe the example, and explain how it connects to economic
liberalization. Hyperlink your source as well.

3. Research an example of a course country that has opened its economy to foregin
direct investment, describe the example, and explain how it connects to economic
liberalization. Hyperlink your source as well.
3.E.1. Political-economic systems in the course countries can be compared by measuring
levels of economic development, economic growth, human development, wealth, and
inequality.

Use the links to research the statistics for each course country.

Measurements Russia United Kingdom China Nigeria Iran Mexico

Economic -3 -9.4 2.3 -1.8 3.4 -8.3

Growth
GDP Growth

Human .824 .932 .761 .539 .783 .779

Development
HDI

Inequality 37.5 35.1 38.5 35.1 42 45.4

Gini Index
*For Human Development, the closer to 1 the better
*For Inequality, the lower the percentage the better

1. Combining the statistics of all three measurements, which country has the best
economy? Explain how that country’s political system may influence its economy.

2. Combining the statistics of all three measurements, which country has the worst
economy? Explain how that country’s political system may influence its economy.

3.E.2. Course countries of all regime types adopt economic liberalization policies with the
goals of remedying undesirable domestic circumstances, such as rising unemployment and
reduced productivity, and undesirable external situations, such as trade deficits with other
states and decreasing demand for raw materials like petroleum, natural gas, and rare-earth
metal.

Read this article about the policies of PM Margaret Thatcher and how they shaped Britain’s
current economy. When you are finished, answer the following question.
 1. What economic liberalization policies did Thatcher implement in the United Kingdom?
Describe at least two.

Reduced budget of government

Privatization of industries

Read this article about economic liberalization policies in China. When you are finished,
answer the following question.

2. According to the article, why should President Xi Jinping implement more open
economic policies? Explain.

Xi’s economic stranglehold has had worsened the economy. It was expanding prior to his
trade war.

3.E.3. Neoliberal economic policies (referring to the removal of barriers and restrictions on
what internal/external economic actors can do) have had mixed effects, including
reduction in inflation and increases in national income, as well as growing inequality in
wealth distribution, persistent political corruption, and the exacerbation of existing social
tensions as governments attempt to balance economic freedom with policies that promote
economic and political equality.

Watch this video that discusses the pros and cons of neoliberalism. Then research one of our
course countries, except for the UK, that has enacted neoliberal policies. In the box below,
explain how the course country has been positively and negatively impacted by
neoliberalism. Hyperlink your source(s) in the box.

Mexico or China

3.E.4. Economic prosperity tied to liberalization policies has affected the power of ruling
political parties among course country political systems.

Research a political party within a course country, except for the UK, that has implemented
liberalization policies and explain how that party’s power has been affected by the failure or
success of said policies. Hyperlink your source(s) in the box.

PAN- Mexico
PRI- Nieto