LAISSEZ FAIRE

POLICY
 • French Phrase – “allow to do”
• Originated in the 18th Century
during the Industrial Revolution.
WHAT IS • Also known as Delegative leadership.
LAISSEZ • Rejects the practice of Government
Intervention in an economy.
POLICY? • Adam Smith believed that the
optimal functioning of the markets
needed minimal government
intervention.
 • The individual is the basic
unit of society.
• The individual enjoys a
natural right to freedom.
• The physical order is self
BASIC regulatory.
PRINCIPLES • To promote free and
competitive market.
• Free movement of supply
and demand.
• Free from intervention of
Government.
 1) Protectionism
• Government regulation that limits
International trade.
FORMS OF
GOVERNMENT 2) Antitrust Laws
INTERVENTION • These oppose monopoly, trust that
don’t allow higher participation from
potential entrepreneurs.
CHARACTERISTICS
• Hands off approach
• Leaders provide training and
support
• Decisions are left to
employees
• Comfortable with mistakes
• Accountability falls to the
leader
 In school: The teacher is more so an
observer while students are able to do as
they wish. There is lack of or little by way of
expectations and discipline in the classroom.

At work: Leaders and supervisors will stand

back and let their employees make decisions
EXAMPLES and may let them set their own deadlines.
They don't offer much feedback.

In Government: A political leader who

exhibits laissez-faire leadership would leave
decisions to subordinates and provide little
direction.
 Autonomy

Innovation

ADVANTAGES Absence of taxes

Encourages personal growth

Allows faster decision making

 Lack of role clarity

Poor involvement with group

DISADVANTAGES Low accountability

Passivity

Failure to represent the interest of

entire society