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Neo-liberalism has been primarily defined in research in terms of economic and political
strategy. For example, George (1999) has defined neo-liberalism as a theory that focuses on
the deregulation and reduction of state. Or Vilas (1996) for example, describes neo-liberalism as
"the deregulation of the economy, trade liberalization, the dismantling of the public sector [such
as education, health, and social welfare], and the predominance of the financial sector of the
economy over production and commerce" (cited in Hursh, 2005 p.4). Although these definitions
are valuable from an economic standpoint, it is important to also understand how neo-liberalism
can exist in different modes within specific social settings (Brown cited Petersen & O'Flynn,
2007). Lemke (2001, p.198) explains neo-liberal technologies by drawing on Foucault (1970)
the following way:
The neo-liberals generalize the scope of the economic in order to accomplish two
things: First, the generalization functions as an analytical principle in that it investigates
non-economic areas and forms of action in terms of economic categories. Social
relations and individual behaviour are deciphered using economic criteria and within
economic terms of their intelligibility. Second, the economic matrix is also programmatic
in that it enables a critical evaluation of governmental practices by means of market
concepts. It allows these practices to be assessed, to show whether they are excessive
or entail abuse, and to filter them in terms of the interplay of supply and demand.

Similar to Foucaults definition, Olssens (2003), understanding of neo-liberalism within the

educational setting is defined as:
indirect forms of control via the use of markets and through various other new
techniques of government. It involves a reorganization of the spaces in terms of which
freedom can be practiced and in terms of which rights can be exercised. Because it
refuses to extend power or authority to groups of people who claim professionalism by
virtue of a shared competence, but represents such groups solely as aggregates of selfinterested individuals, it replaces networks of delegated power which characterizes the
professional mode of organization, with hierarchical chains-of-line management which
disempowers and de-authorizes the labour of the teacher and intellectual, effecting a
de-professionalization of education labour in the neoliberal state. (p.200).

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