Neo-liberalism proposes that market-based competition is significant to effective management of human affairs, whereby everything, according to Harvey, is commoditized. Job et al. (2008, p. 1) purport that neo-liberalism holds the view that introduction of market disciplines can eliminate social injustices and therefore government intervention is undesirable. In other words, free operation of the economy needs to be enhanced through encouraging free trade, removal of tariffs and government regulations.
Neo-liberalism has also been introduced in other human activities that initially did not apply the market forces, such as education among other public services. It purports that competition and liberalization of the market to support private establishment in offering education increases efficiency (Plant, 2009, p. 92). It led to the emergence of the education market that continues expanding as private entities continue joining the profitable venture (Green, 1999, p. 51).
Hatcher (2001, p 37) observes that in a bid to accomplish increased trade and profitability, nation states have removed the barriers to trade such as tariffs, the regulations that govern movements of products and peoples between countries, and legislation as well as other standards that may hinder capital movements among nation states. Countries allow the forces of demand and supply to operate, which has resulted in the further development of market-based economies.
Neo-liberalism is characterized by observance of market rules, leading to the removal of some conventional practices such as unionization of labor, which are viewed as hindrances to free flow of capital. Governments reduce public spending in various sectors such as education and health service provision, in order to allow profitable investment by private entities (Zeichner & Liston, 1996). New public management represents a form of neo-liberalism whereby public services are either privatized, reducing government control thereby