Neoliberalism, Strong State and Democracy

Abstract

The article serves to clarify the concept of the "strong state" in neoliberal thinking and its relationship to democracy. It is argued that the move away from neoclassical market theory has paved the way for the specifically neoliberal conception of the state and democracy. As a result, neoliberalism has at least a strained, sometimes even hostile, relationship with democracy when it comes to ensuring the efficiency and stability of the capitalist system. The article analyses Carl Schmitt's "authoritarian liberalism" and Friedrich A. Hayek's "dethronement of politics", the latter leading to various concepts of governance by "experts" at national, regional, and global levels who act as non-political "well-meaning dictators". The practical implications of this idea are then illustrated by the architecture of the European Union and its central bank. Finally, the neoliberal position on the state and democracy is confronted by Keynesianism, which is considered the archenemy of neoliberals.