Constructing a neoliberal exclusionary state: the role of far-right populism in economic policy change in post-war Austria

Abstract

How and to what extent does far-right populism impact the nation-specific implementation of neoliberal policymaking? While scholarship convincingly demonstrated the importance of ideas and the political agents propagating neoliberal ideas in policy paradigmatic shifts, there is little investigation of the role that far-right populists play in economic policy change. Exploring the ideational power and impact of far-right populism in neoliberal policymaking provides an important insight into how neoliberal political economies enact nationalist cultural exclusion. The paper traces the process through which the Austrian Freedom Party’s ideational trajectory evolved in post-war Austria and how it impacted the political mainstream. The analysis draws from the party’s discourse in manifestos, interviews, and other publications in the period 1956–2006. The results show how the specific far-right populist actor, the Austrian Freedom Party, played a significant role in rendering neoliberal ideas viable as policy option early on and ultimately constructing the neoliberal exclusionary state. By empirically showcasing how political actors from the fringes of the political spectrum can impact economic policy change, this presents an important contribution to the study of paradigm shifts, which predominantly focused on major national political actors. In light of the recent rise of far-right populism in Europe and beyond, this raises important questions for the continuity and change of the global paradigmatic dominance of neoliberalism.