
“Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
“Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters first appeared in Critical Studies in Education in 2007 (Vol. 48, No. 2, pp. 165–178), and was published online by Routledge on May 13, 2008. This pivotal article examines Michel Foucault’s late-1970s lectures on governmentality—particularly his analysis of German ordoliberalism and the emergence of the “social market economy”—and how these ideas influenced the broader trajectory of neoliberalism. Peters highlights Foucault’s shift from disciplinary regimes to biopolitics, marking a new phase in which liberalism governs not only institutions but also individual subjectivity through economic rationality. Central to Foucault’s insight is the link between the governance of the self and the governance of populations—a critical concept that challenges both Marxist and classical liberal accounts of power and knowledge. Peters situates this analysis within Foucault’s genealogical method, emphasizing how modern political reason, particularly in the context of post-war Germany, shaped neoliberal thought by embedding market logics within legal and social frameworks. The article is significant in the fields of literature and literary theory for its demonstration of how economic ideologies permeate discursive practices and subject formation, extending Foucault’s influence beyond philosophy into cultural and educational studies. Peters’ work thereby underscores the enduring relevance of governmentality studies for understanding the cultural conditions of neoliberalism and their implications for literary and critical theory.
Summary of “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
1. Foucault’s Shift to Governmentality and Biopolitics
- Foucault’s work in the late 1970s marked a shift from analyzing disciplinary institutions to studying governmentality—the “conduct of conduct” at the intersection of knowledge, power, and subjectivity.
- He rejected both Marxist notions of “knowledge as ideology” and classical liberal ideas of disinterested truth, instead focusing on how “practices of knowledge” are “produced through the relations of power” and help shape subjectivity (Peters, 2007, p. 166).
- “Power is exercised only over free subjects, and only insofar as they are free.” (Foucault, 1982, p. 221, cited in Peters, 2007, p. 165)
2. The Link Between Government of the Self and of the State
- One of Foucault’s central insights is that liberal governance works through the alignment of self-governance with state sovereignty.
- “Liberal modes of governing… utilize the capacities of free acting subjects” and depend on specific definitions of freedom (Peters, 2007, p. 165).
- This insight underpins Foucault’s analysis of biopolitics—the management of populations through political and economic rationalities.
3. Origins of Biopolitical Government: From Family to State
- The emergence of modern government is traced to the 16th century, where “the art of government” first aligned with managing the economy of the household (oikos).
- Rousseau later echoed this in his Discourse on Political Economy, where “the government of the state is modeled on the management… of the family” (Peters, 2007, p. 166).
- Biopolitics focuses on “treating the population as a mass of living and co-existing beings” (Foucault, 1989, p. 106, cited in Peters, 2007, p. 167).
4. German Neoliberalism and the Ordoliberal Tradition
- Foucault devotes significant attention to German ordoliberalism, especially the Freiburg School (Eucken, Böhm, Müller-Armack), as foundational to post-war German economic policy.
- Ordoliberals advocated for a strong legal-juridical framework to secure market competition and social equity through the “social market economy” (Peters, 2007, pp. 169–170).
- “The social market economy was devised as an economic system combining market freedom with social equilibrium” (Peters, 2007, p. 169).
5. Distinguishing Neoliberalism from Classical Liberalism
- Foucault differentiates neoliberalism by its emphasis on knowledge of how to govern globally through the market economy (Peters, 2007, p. 170).
- The “theory of pure competition” was central to this transformation, where market mechanisms regulated society (Peters, 2007, p. 170).
- The neoliberal subject becomes homo economicus—rational, self-regulating, and entrepreneurial.
6. Critique of State Power and the Rise of ‘State-Phobia’
- Foucault situates German neoliberalism in the post-Nazi context of “state-phobia”, which extended into critiques of Keynesianism, the New Deal, and the British welfare state (Peters, 2007, pp. 168–169).
- German neoliberals saw these statist approaches as threats to individual freedom and market function.
7. Ethical Foundations of Market Order in Freiburg School
- The Freiburg school regarded the market as “an ethical order” that must be protected from monopolies and state intervention (Vanberg, 2004, cited in Peters, 2007, p. 170).
- In contrast, Müller-Armack viewed the market as a technical instrument requiring ethical supplementation through “social policies” (Peters, 2007, p. 170).
8. Legal Order and the Concept of Economic Constitution
- Central to ordoliberal thought is the idea of Ordnung (order), or the legal-economic structure necessary for a free market to function ethically.
- Foucault highlights that “one improves the economy by improving the economic constitution or the institutional framework” (Peters, 2007, p. 171).
9. From Social Policy to European Social Model
- Foucault links German neoliberalism to the broader formation of the European social model, emphasizing how social equity was integrated within a competitive market logic.
- This informs Third Way politics and education policy, especially in the “knowledge economy” era (Peters, 2007, pp. 172–173).
10. Governmentality as a Tool to Understand Modern Neoliberalism
- Foucault provides a framework to analyze how governing the self (e.g. through enterprise culture and accountability) aligns with governing populations (Peters, 2007, p. 173).
- “Neoliberalism institutionalizes the entrepreneurial self… generalizing all forms of capitalization of the self” (Peters, 2007, p. 173).
- His work offers an alternative to moralistic critiques of neoliberalism (e.g., David Harvey) by historicizing its epistemological roots.
Theoretical Terms/Concepts in “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
| Term | Explanation + Example from Article |
| 🧠 Governmentality | Explanation: Foucault’s term for the art of governing beyond traditional notions of state power; it refers to the rationalities and techniques by which subjects are governed. Example: The article explains how Foucault analyzed liberalism through governmentality—highlighting how freedom itself becomes a mechanism of control by mobilizing individuals’ self-regulation. |
| 🧬 Biopolitics | Explanation: A form of power focused on managing populations as biological and political entities. It refers to the governance of life—birth, death, health, longevity, etc. Example: Foucault’s concept that the state “has essentially to take care of men as a population” signals the shift toward biopolitics through practices like public health and education policies. |
| ⚖️ Ordoliberalism | Explanation: A German school of neoliberal thought emphasizing a strong legal and institutional framework to maintain market competition. Example: Peters details how thinkers like Eucken and Erhard crafted the “social market economy” where the state ensures competition while also providing social welfare safeguards. |
| 🧾 Political Economy | Explanation: The study of how economic theories and practices intersect with political structures. Example: Foucault investigates how political economy becomes the internal limit of liberal government—through the principle of market truth rather than justice. |
| 👤 Subjectivation / Subjectivity | Explanation: The process by which individuals are shaped as subjects through power and knowledge structures. Example: Foucault shifts from focusing on individuals to how political systems produce subjects, particularly through pastoral power and self-regulation. |
| 💼 Entrepreneurial Self | Explanation: A neoliberal ideal where individuals treat themselves as businesses, investing in their own skills and productivity. Example: Peters discusses how neoliberalism institutionalizes the entrepreneurial self in education and labor policy—framing life as a project of performance and accountability. |
| 📊 Political Arithmetic (Statistics) | Explanation: Techniques used to quantify and regulate populations, foundational to biopolitical governance. Example: The article mentions how Foucault examines “political arithmetic” as a key in the formation of population-focused governance, moving away from sovereignty toward management. |
| 🧩 Reason of State (Raison d’État) | Explanation: A concept of governance where the state’s legitimacy stems from its effectiveness, not from divine or natural law. Example: Foucault describes the shift in the 16th century when state legitimacy began to rest on managing populations and economies rather than sovereign decree. |
| 🏛️ Civil Society | Explanation: A domain of voluntary associations and private relationships distinct from the state. In neoliberalism, it becomes a crucial support structure for economic freedom. Example: Peters notes Foucault’s focus on civil society (via Adam Ferguson) as an essential companion to homo economicus, allowing liberalism to function without direct state intervention. |
| 📈 Homo Economicus | Explanation: The model of a rational, self-interested economic actor central to neoliberal thought. Example: In Foucault’s lectures, this figure is redefined under neoliberalism not simply as a consumer but as an entrepreneur of the self, engaged in constant self-investment. |
Contribution of “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters to Literary Theory/Theories
| 📘 Literary Theory | 🧩 Contribution from the Article | 🔍 Reference / Example from the Article |
| 🔄 Poststructuralism | Challenges essentialist views of power, identity, and meaning by emphasizing discourse, governmentality, and the subject as effects of historical power-knowledge. | “Foucault examined practices of knowledge produced through the relations of power” (p. 166) |
| ⚖️ Critical Theory | Critiques neoliberalism as a form of masked ideological control that embeds market rationality within notions of freedom and governance. | “Neoliberalism institutionalizes the entrepreneurial self and generalizes all forms of capitalization of the self” (p. 173) |
| 🔨 Marxist Literary Theory | Reinterprets capitalist ideology through biopolitics and state intervention, emphasizing power beyond class struggle and material base. | “Technologies of power… based on biopolitical techniques that bypassed the law and its freedoms” (p. 167) |
| 🧠 Psychoanalytic Theory | Engages implicitly with the psychic internalization of neoliberal governance, especially the construction of the ‘entrepreneurial self.’ | “The government of the self has become so important to understanding both neoliberalism and Third Way politics” (p. 173) |
| 🎭 Cultural Studies | Links political economy to subject formation and cultural practices, particularly in education and knowledge production. | “The notion of the ‘citizen–consumer’—a market-democracy hybrid of the subject…” (p. 172) |
| ⏳ New Historicism | Uses Foucault’s genealogy to historicize neoliberalism from feudalism through modernity, stressing contingency in the development of state power. | “Foucault explores the problem of government as it ‘explodes in the sixteenth century’ after the collapse of feudalism…” (p. 166) |
| 👤 Reader-Response Theory | Undermines the idea of an autonomous reader by showing how neoliberalism configures the subject as a rational, self-regulating individual. | “…the entrepreneurial self is an individual constantly acting on him or herself to improve future outcomes” (p. 173) |
| 🧩 Structuralism | Reveals how neoliberalism depends on binary oppositions (e.g., market vs. state, freedom vs. regulation) within systems of meaning and governance. | “Liberalism… possessed a distinctive concept and rationale for the activity of governing” (p. 167) |
Examples of Critiques Through “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
| 📘 Literary Work | 🧩 Foucauldian-Neoliberal Critique (via Peters) | 🔍 Example Application |
| 🏙️ George Orwell – 1984 | Explores disciplinary society, but can be contrasted with Peters’ view that modern neoliberal control is biopolitical, not overtly repressive. | Winston is punished through overt surveillance; in contrast, Peters’ neoliberal subject internalizes self-discipline through “freedom.” |
| 🎓 Kazuo Ishiguro – Never Let Me Go | Illustrates biopolitics and life administration, as characters are bred and conditioned to die for the good of the system. | Like Foucault’s population management, clones are produced for “health” policies—echoing Peters’ discussion of state-as-caregiver logic. |
| 🧳 F. Scott Fitzgerald – The Great Gatsby | Jay Gatsby exemplifies the entrepreneurial self—constantly investing in himself to maximize symbolic capital—mirroring neoliberal subjectivity. | Peters’ idea of “capitalization of the self” applies directly to Gatsby’s self-invention through social mobility fantasies. |
| 🏫 Alan Bennett – The History Boys | Demonstrates neoliberal restructuring of education as human capital production, echoing Peters’ critique of knowledge economies. | Schoolboys are trained not for knowledge but for university rankings—reflecting Peters’ concern with “audit culture” and “output-based accountability.” |
Criticism Against “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
🔍 Overreliance on Foucault Without Critical Distance
- Peters adopts Foucault’s framework largely uncritically, potentially reproducing its blind spots rather than interrogating them.
- Critics may argue he does not sufficiently engage with limitations in Foucault’s genealogy—such as its lack of attention to resistance, race, or class struggle.
🌍 Limited Global Scope
- The article centers heavily on German ordoliberalism and European contexts, overlooking how neoliberalism manifests differently in the Global South, postcolonial states, or authoritarian economies.
- The broader geopolitical impact of biopolitics—e.g. in colonial or militarized zones—is underexplored.
📚 Minimal Engagement with Alternative Theories of Neoliberalism
- Peters does not deeply contrast Foucault’s insights with other major theorists such as David Harvey, Wendy Brown, or Nancy Fraser, who bring Marxist, feminist, or racialized critiques of neoliberal power.
- As a result, readers are offered a Foucauldian “monologue” rather than a dialogue with diverse theoretical traditions.
🧱 Ambiguity Around Resistance or Agency
- By emphasizing how neoliberalism molds the entrepreneurial self, Peters may understate spaces of resistance or critical agency within neoliberal regimes.
- There’s little discussion of how individuals contest, subvert, or escape governmentality—even within educational or cultural settings.
🧠 Abstraction Without Concrete Case Studies
- The analysis remains highly abstract; it theorizes subjectivity and governmentality but lacks grounded ethnographic, empirical, or literary case studies to exemplify how neoliberalism actually functions in lived practice.
📏 Loose Conceptual Boundaries
- Concepts like “entrepreneurial self” or “capitalization of the self” are not tightly defined in Peters’ usage, and could benefit from clearer boundaries or distinctions from existing psychological or sociological models.
Representative Quotations from “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters with Explanation
| # | Quotation | Explanation |
| 1️⃣ | “Power is exercised only over free subjects, and only insofar as they are free.” | Power in modern societies operates through freedom—by influencing how individuals choose and act, rather than through direct coercion. |
| 2️⃣ | “The problem… is not to liberate the individual from the state, but to liberate ourselves from the type of individualization linked to it.” | Foucault warns that the deeper issue is how the state shapes individuals’ identities—not just its external control, but its role in forming subjectivity. |
| 3️⃣ | “Foucault examined practices of knowledge produced through the relations of power.” | Knowledge is not neutral—it’s shaped by power and, in turn, reinforces power structures. This challenges traditional epistemological assumptions. |
| 4️⃣ | “Western society employed technologies of power… based on biopolitical techniques that bypassed the law.” | Modern governance uses disciplinary and biological regulation rather than legal mandates—shaping behavior subtly and systemically. |
| 5️⃣ | “Government emerges… as a general problem… including the government of the self.” | The act of governing includes self-regulation, where individuals internalize social norms and manage their behavior in accordance with political rationality. |
| 6️⃣ | “It wields its power over living beings… its politics… has to be a biopolitics.” | The state manages populations as biological entities—through health, reproduction, and life expectancy—thus politics becomes biopolitics. |
| 7️⃣ | “The problem of neoliberalism is knowledge… of how to exercise global political power based on the principles of a market economy.” | Neoliberalism governs through expert knowledge—embedding economic logic into global political systems and statecraft. |
| 8️⃣ | “The market based on the rule of law was seen as an essential bulwark of liberalism.” | Neoliberalism, especially in the German tradition, relies on strong legal frameworks to ensure fair competition, not just deregulation. |
| 9️⃣ | “Neoliberalism institutionalized enterprise culture… capitalization of the self.” | Individuals become entrepreneurs of the self—expected to invest in and optimize themselves as if they were economic assets. |
| 🔟 | “Foucault provides us with a complex genealogy… that confounds standard accounts of liberalism and neoliberalism.” | Foucault challenges simplistic critiques by tracing the nuanced evolution of modern political rationalities like neoliberalism. |
Suggested Readings: “Foucault, biopolitics and the birth of neoliberalism” by Michael A. Peters
- Dillon, Michael, and Luis Lobo-Guerrero. “Biopolitics of Security in the 21st Century: An Introduction.” Review of International Studies, vol. 34, no. 2, 2008, pp. 265–92. JSTOR, http://www.jstor.org/stable/40212521. Accessed 28 July 2025.
- Prozorov, Sergei. “Foucault’s Affirmative Biopolitics: Cynic Parrhesia and the Biopower of the Powerless.” Political Theory, vol. 45, no. 6, 2017, pp. 801–23. JSTOR, https://www.jstor.org/stable/26419448. Accessed 28 July 2025.
- Hughes, James J. “Biopolitics.” Keywords for Environmental Studies, edited by Joni Adamson et al., vol. 3, NYU Press, 2016, pp. 22–24. JSTOR, http://www.jstor.org/stable/j.ctt15zc5kw.11. Accessed 28 July 2025.
- Levinson, Brett. “Biopolitics and Duopolies.” Diacritics, vol. 35, no. 2, 2005, pp. 65–75. JSTOR, http://www.jstor.org/stable/4621035. Accessed 28 July 2025.

