Pouya Jabal Ameli
Thirty-six years ago, the sudden fall of the Berlin Wall marked the triumph of the free economy over the closed world of communism. Classical liberalism—built on the rule of law, individual freedom, private property, open markets, limited government, and political liberty—prevailed over state control, totalitarianism, and collective ownership. Millions who had lived in poverty and hopelessness saw their lives transformed through integration with the global economy.
This historic victory led many thinkers to imagine the “end of history,” believing that the liberal order had finally conquered all alternatives. Yet less than two decades later, with the global financial crisis of 2008, that illusion ended. The fall of faith in liberalism came from two opposing fronts: the old socialist left, rejecting market capitalism through movements like Occupy Wall Street, and the new populist right, which emptied liberalism of its true meaning while claiming its slogans.
From the mid-2010s, fueled by migration crises and conflicts such as the Syrian war, the far right rose rapidly. Parties like Reform UK, Alternative for Germany, and France’s National Rally, along with Trumpism in the United States, have gained unprecedented political power. These forces, though once marginal, now threaten the very foundations of liberal democracy.
Classical liberalism in the 19th century created the modern world through free trade and open migration. The United States became a land of opportunity for those willing to build their own future, without state aid or privilege. Cities like London and New York became multicultural centers as a result of this liberal openness. The fact that a Muslim socialist can be elected mayor of a capitalist metropolis is a living symbol of liberal tolerance—the belief that even opponents deserve the right to participate freely.
But today, this legacy is fading. The far right rejects free trade, fears migrants, and calls liberal tolerance a betrayal of Western identity. Behind their calls for “small government” lies a system of favoritism and manipulation. Under Trump, for instance, economic freedom meant privilege for political allies, while others faced pressure and exclusion. The market remained “free” only for those connected to power, while the rule of law was weakened by political interference.
Thus, movements once rooted in liberal parties have turned against their own origins. The economic policies of Donald Trump sharply contrast with those of Ronald Reagan, reflecting the transformation of the right from defenders of liberty to agents of control. What they now build are new walls—walls of nationalism, protectionism, and intolerance—that challenge the universal values of freedom and equality.
True freedom is not a permanent gift; it requires sacrifice, tolerance, and constant defense. If the populist wave continues, even the most advanced societies may lose many of the gains achieved since the fall of the Berlin Wall.
For advocates of free markets in Iran, understanding this global shift is essential. Mistaking far-right populism for genuine liberalism could lead to outdated and distorted policy choices.
A longer version of this article was first published in Farsi by Donya-e Eqtesad daily.
