Practical idealism is a term first used by John Dewey in 1917 and subsequently adopted by Mahatma Gandhi (Gandhi Marg 2002). It describes a philosophy that holds it to be an ethical imperative to implement ideals of virtue or good. It further holds it to be equally immoral to either refuse to make the compromises necessary to realise high ideals, or to discard ideals in the name of expediency. Practical idealism in its broadest sense may be compared to utilitarianism in its emphasis on outcomes, and to political economy and enlightened self-interest in its emphasis on the alignment of what is right with what is possible.
In foreign policy and international relations, the phrase "practical idealism" has come to be taken as a theory or set of principles that diplomats or politicians use to describe or publicize their outlook on foreign policy. It purports to be a pragmatic compromise between realism, which stresses the promotion of a state's "narrow" and amoral self-interest, and idealism, which aims to use the state's influence and power to promote higher liberal ideals such as peace, justice, and co-operation between nations. In this view, realism is seen as a prescription for Machiavellian selfishness and ruthlessness in international relations. Machiavelli recommended political strategies for reigning, or potential, princes; the infamous teachings gravitate around his vision of the overarching and ultimate goal of any Prince, remaining in power. These strategies range from those that, today, might be called moderate or liberal political advice to those that, today, might be called illegal, immoral or, in the U.S., unconstitutional. For better or worse, Machiavelli is by name, like novelist George Orwell, modernly associated with manipulative acts and philosophies that disregard civil rights and basic human dignity in favor of deception, intimidation, and coercion. This extreme form of realism is sometimes considered both unbecoming of nations' aspirations and, ultimately, morally and spiritually unsatisfying for their individual people. Extreme idealism, on the other hand, is associated with moralist naiveté and the failure to prioritize the interests of one's state above other goals.