OELs or HILs ?

The International Political Economic is influenced by those groups of people. Orthodox Economic Liberals (OELs) group emphasize that market doesn’t need states and Heterodox Interventionist Liberals (HILs) group prefer state intervention in the market. These two groups have their own proposal which have the advantages and also the flaws. Indonesia as a developing country, I think that HILs policy will fit best with our situation today.

As Balaam said, OELs is a group of people who cling to economic liberal ideas, values, and policy prescription. They support that an open and free market could determine socio-political outcomes. OELs suggest that the government support on banks, infrastructure project and social welfare programs should be limited. They wish that state doesn’t regulate of many parts of the economy. They also offer an idea to stimulate the economic growth, the government should cut taxes.

Increasing government spending as long as it creates more jobs is better than just worrying about the inflation. Developing countries need new technology and many kind of way to higher their standard of living. Therefore, the government should invest more in, such as infrastructure, education, healthcare, etc. Banks also need government help to regulate about the derivatives, deposit requirement, pay and bonuses. HILs agree with the globalization but they prefer to manage it than foster it without purposes. (Ballam & Dillman, 2014)

Because of those proposoal from each group, I think Indonesia will prefer the HILs because HILs give more advantages to us. Such as, they suggest that developed country should help developing country. Even Indonesia has been one of the developing country that has a good economic condition but we still need help from HILs to assist us in adopting free market because in here there are many domestic company which is defeated by the international product. So, what do you think? Do you prefer HILs also like I do?

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Source : Ballam, D. N., & Dillman, B. (2014). "Laissez-Faire": The Economic Liberal Perspective. In D. N. Ballam, & B. Dillman, Introduction to International Political Economy (pp. 73-76). Harlow: Pearson Education Limited.