The neo-liberal perspective of the state advocates for a minimal, non-interventionist government primarily focused on protecting individual liberties, private property rights, and facilitating free markets. Emerging in the late 20th century as a critique of the welfare state and Keynesian economics, neo-liberalism champions economic liberalization, deregulation, privatization, and reduced public spending.

From this viewpoint, the state's role is akin to a 'night-watchman' – it should provide a stable legal framework, enforce contracts, maintain law and order, and ensure national defense, but refrain from extensive involvement in economic and social affairs. It is believed that free markets, driven by individual self-interest and competition, are the most efficient allocators of resources and lead to overall prosperity. State intervention, such as subsidies, price controls, or extensive welfare programs, is seen as distorting markets, stifling innovation, and creating dependency. The neo-liberal state aims to create an environment conducive to business and investment, promoting global trade and capital flows, and often advocating for fiscal austerity and reduced taxation to stimulate economic growth. This perspective prioritizes individual economic freedom and limited government over collective welfare and state-led development.