Which political economy originated in the 1960s advocating free markets, balanced budgets, privatization, free trade, and minimal government intervention?

• A. Neoliberalism
• B. Import Substitution
• C. Patron-Client System
• D. Mexican Miracle

Answer: (A)

Neoliberalism is the political economy that promotes free markets, fiscal discipline with balanced budgets, privatization of state-owned enterprises, free trade, and minimal government intervention in the economy. This set of ideas emerged in the 1960s as a shift away from heavy state-led planning toward market-based policies. The description in the prompt matches neoliberalism precisely, since it highlights privatization, deregulation, open trade, and limited government spending. In contrast, import substitution relies on protective tariffs and strong state involvement to build domestic industry; the patron-client system centers on informal political networks rather than an economic doctrine; and the Mexican Miracle refers to a period of rapid growth rather than a policy framework. Therefore, the best answer is neoliberalism.