...Overview Capitalism is the combination of many actions that provides the economic structure such as the changing balance of output, trade, income and employment. This is based on private ownership by means of corporations or individuals. There are many types of capitalism. This essay discusses two types of capitalism that are currently being debated in the media, State capitalism and liberal capitalism. This essay also investigates whether the South Africa is really state capitalism or are they using Major Private Sectors to socially develop the South African economy, being Neoliberal capitalism? State Capitalism VS Liberal Capitalism State capitalism is when the government takes control over the commercial economic environment. The government may own shares in a public company listed in the stock exchange, acting as a large shareholder. Another type of economic system where State capitalism would be involved is when production is owned by private companies and the state controls the credit and investment allocation. Liberal capitalism is also known as free market capitalism; it gives companies and individuals the freedom to run their own market and set their own price systems. Individuals or companies would benefit with their gains and face detriment with their errors. The government may intervene to control free trade and open competition by eliminating private Monopoly. Neoliberal Capitalism is where private sectors seek to maximise the political and economic priorities...
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...Essay Question: Illustrate your answer with s In this essay I hope to go through the strengths and weaknesses of the Neoliberal approach to development using examples of countries in which they have implemented Neoliberal influenced reforms in order to develop their country. I will then attempt to evaluate my findings to see whether or not the Neoliberal approach is successful or not or is it something which has its weaknesses and strengths and cannot be judged either way. The term Neoliberalism can be defined as a ‘modernised or revised form of liberalism, one based on belief in free market capitalism and the rights of the individual. This is a definition given by the Oxford English Dictionary 1989. In the 1970s Neoliberalism enjoyed increasing popularity and an aspect of the theory we should look at its influence on the Washington Consensus which was an extensive list of economic policies written by John Williamson in 1989. This was a package of standards created to aid countries in economic crisis. Neoliberalism reduces the influence of state and trade unions on markets and reduces the public sector workforce. It also increases in the privatisation of formerly public owned institutions, decreases state interference and opens up markets of an economy to foreign companies. A country which takes on Neoliberal approaches to its economy, in theory should favour strong individual private property rights, rule of law and the institution of freely functioning markets and...
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...Neoliberalism and the global financial Crisis Introduction The fusion of neoliberal beliefs and the western society started in the early 1970’s, it has incorporated in the society to such an extent that it can be portrayed as being impending. For more than forty years now neoliberalism has controlled governments, technology, housing and financial sector and has impacted our society in destructive ways. Neoliberalism reached a new height after the 2008 financial crisis leaving recession as an aftermath. Neoliberalism as explained by Harvey (2005) is a model of private enterprise which concentrates on the economy and its deregulation to empower a free market based monetary framework. Hillyard and Tombs (2004) see neoliberalism as a destruction breeding form of capitalism which they think makes a commanding dispute for, the state demanding to be considered in charge of methodically creating destruction. Neoliberalism as indicated by David Harvey is a "hypothesis of political monetary works on recommending that human prosperity can best be progressed by the augmentation of entrepreneurial opportunities inside of an institutional system portrayed by private property rights, individual freedom, unhampered markets, and free trade" (2005:2). The idea of neoliberalism in western social orders is connected with the Thatcher government in the UK and the Reagan government in the US which came to power in the late 1970s – mid 1980s henceforth presenting neoliberalism as a key financial...
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...which is based on quality academic journal articles, texts and research institutes’ materials. The report clarifies each member’s interaction and its power residents. This power resident and relationship can be reformed through social agenda setting. There is possibility that power-balanced society in capitalism can be diminished through its change into neoliberalism agenda. This is examined through reviewing Japan’s development in last couple of decade. Contents Table 1.0 introduction..............................................................................................3 2.0 Role and power resident.........................................................................3 2.1 The role and power resident of Government.....................................................3 2.2 The role and power resident of Corporations....................................................4 2.3 The role and power resident of Citizens...........................................................5 3.0 An Interaction of Government, Corporations and Citizens…………6 4.0 Character of social context (capitalism, neoliberalism)…………....7 4.1 A power interaction in Capitalism...................................................................7 4.2 A power interaction in Neoliberalism..............................................................8 5.0 Analyzing power relations in recent decades of Japanese society…10 6.0 Conclusion.................................
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...with economics rather than politics, and concerning itself more with domestic rather than international social relations. Viewed from the perspective of Marxism however, both liberalism and realism are profoundly limited, for each takes as its premise a world of pre-constituted social actors (whether self-interested individuals or security-seeking states). These theories are therefore unable to consider the social processes through which these kinds of actors have been historically constructed. Thus in analyzing the so-called war on terror, Marxism forces us to understand the development of the structures of global capitalism and the ideologies and agents situated within these structures. This essay therefore evaluates whether Marxist theories of international politics offer convincing explanations of the war on terror. I start with the Marxist understanding of capitalism as a historically particular way of organizing social life that entails political, cultural and economic aspects that need to be understood as a dynamic ensemble of social relations not necessarily contained within the territorial boundaries of nation states. I then apply this understanding to frame the war on terror through the context of economic security which has animated US policy-makers from the Second World War to the Bush administration, and in the Gramscian sense that argues instead for a more “nuanced class-theoretic explanation which allows for and explains the war and the power of the neoconservatives...
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...new framework for a global economic structure has been developing. This modern structure is an evolved form of capitalism, driven by neoliberal ideologies, which has adapted to the economic and social conditions of the current day. The recent phenomenon of globalization is in essence a modern form of global hegemony and dominance that establishes control through financial domination and capital exploitation. This paper focuses on this process of domination by examining the effects of neoliberal policies and structural reforms using the nation of Brazil as the unit of analysis. As will be discussed later in this report the government of Brazil has undergone significant structural changes over the last few decades that have resulted in an economic shift towards neoliberal policies. Policies promoting free enterprise capitalism, privatization of national assets, deregulation, tax reforms, flexible interest rates, trade liberalization and reductions in public expenditure have resulted in devastating outcomes for poor and marginalized groups within Brazil. These economic reforms have reordered government priorities resulting in cuts in social spending, worsening of wage inequality, displacement of workers, intensification of national debt and the weakening of labor bargaining and the conditions for meaningful work. The argument that this paper seeks to prove is that neoliberal policies in Brazil have altered political and social structures resulting in economic imbalance and economic...
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...What impact has neoliberalism had on world politics? Neoliberalism is an economic philosophy that rose in prominence from the eighties following the elections of Margaret Thatcher and Ronald Reagan. Jones, Parker and Bos (2005: 100) summarise the essence of this view as “markets good, governments bad”. Neoliberalism argues that free trade is beneficial to all nations, that governments create inefficiency and waste, and that the distribution of goods should therefore be left to individuals and firms competing in the market to maximise their utility (WHO 2010). To ensure an efficient allocation of resources, neoliberalists argue for widespread liberalisation i.e. the reduction of rules and restrictions, and the privatisation of public enterprises. However, the reality of Neoliberalism has been very different to the theory. Regulation provides the framework within which markets work and enables the moderation of the externalities they produce, thus deregulation was in fact limited and was quickly followed by regulation (Levi-Faur 2005: 13). Because of this, Polanyi (in Peck, 2010: 330) writes: “the road to a free market was opened and kept open by an enormous increase in continuous, centrally organized and controlled interventionism”. In this essay, I look at the impacts of Neoliberalism on World Politics, focusing on two in particular. Firstly I explain that the policies of liberalisation and privatisation, albeit supported by regulation, have led to increasing inequality...
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...The world system today - Modern stratification: Growth of middle class, social mobility leading to a more complex social stratification. Capitalism: The components * Private ownership of means of production * Market competition * Wage labor * Pursuit of profit There are a variety ways to run a capitalist economy; Even in ‘hyper-capitalist’ USA- we have government regulation…. The debate: Capitalism Like: innovation; entrepreneurship; efficiency; growth; hard work--reward; independence/personal freedom Dislike: inequality; concentration of money and power; narrow definitions of success; economic value privileged over social value; power of corporations. Socialism: the components * Public ownership of means of production * Government runs the means of production * Central planning * Needs of people decided by a central committee * Distribution of good without profit motive * Goods produced and distributed for general welfare (Global) Neoliberal Capitalism Capitalism: private ownership of means of production; market compe…. Neo-liberalism Goals: * Macro-economic stability * Increased FDI * Integration into global economy * Modern development * Debt servicing Privatization:私有化 Market liberalization:市场自由化 Fiscal austerity:财政紧缩 Hegemony: * A word used to describe how the status quo can be preserved through consent as well as coercion. * One way to gain consent for the status...
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...Chapter 3 - ''Laissez-Faire, Laissez-passer''. Liberalism suffers from something of a personality disorder. The term means different things in different contexts. In the United States today, for example, a liberal is general regarded as one who believes in an active role for the state in society such as helping the poor and funding programs to address social problems. For economic liberals (also referred to as neoliberals and sometimes as neocon1 the state should play a limited, knot constricted, role in the economy and society. In other relatives ), words, today's economic liberals have much in common with people who are usually referred to as ''conservatives'' in the United States and many other countries. ROOTS OF THE ECONOMIC LIBERAL The liberal perspective today reveals many insights about political economy that mercantilists miss or do not address. Although liberals believe that people are fundamentally self-interested, they do not see this as a disadvantage because broad areas of society are set up in such a way that competing interests can engage one another. Today's economic liberalism is rooted in reactions to important trends and events in Europe in the seventeenth and eighteenth centuries. Fratxois Quesnay (1694-1774) led a group of French philosophers called the Physiocrats or Qs economist's. Quesnay condemned government interference in the market, holding that, with few exceptions, it brought harm to society. PERSPECTIVE For the laissez-faire world...
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...This assignment is focused on describing neoliberal globalization and identifying that how it has changed the relationship between business and governments. The perspective that what needs to be done in order to ought to the current situation is also discussed and analyzed in this assignment. The suggestions to the government are also provided regarding neoliberalism in this assignment. Neoliberal Globalization Neo-liberalism refers to economic liberalism which has become very important in the international economy (Kotz and David, 1998). Neoliberal globalization is defined as setting up the market free and private enterprises are free from any bonds or regulations imposed by the government of the state (Ong, 2006). Neoliberal globalization mainly promotes the concept of free market economy. The rules of neo-liberal globalization include cutting the public expenditure and reducing the social safety net. It also involves reducing the government regulations or everything that could result in reduction in the overall business profitability of the private enterprises (Harvey, 2005). The state enterprises are sold to the private investors and concepts of ‘public good’ and ‘community’ are eliminated and the individual responsibility is increased. There is a huge criticism that this system usually involves pressing the poorest people within the society which could result in social distress within the society. At the global level, the neoliberal institutions are setting out the rules...
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...better managing and regulating capitalism – that is, striving for “good capitalism” – and those who hold anticapitalist positions. The author of this article argues that a Left that does not give up on the generation of alternatives to capitalism but at the same time is responsible for governing, should think about a “great transition” without losing sight of the horizon of a “great transformation”. This article analyzes the Yasuní-ITT Initiative and presents it as an example of how to merge concrete and innovative proposals (transition) and utopias which go beyond capitalist development (transformation). Key words: Left, Capitalism, Good Living/Sumak Kawsay, Yasuní-ITT The world does not need alternatives for development, but alternatives to development. The world does not need to “better” use capitalism, but to transform it. That is the great historical challenge that the Left should take on, both intellectually and politically. The concept of “development” has been recycled and reborn again and again for all its critics and detractors. However, in a strict sense it has never been questioned as a concept, nor how to best achieve it. Whereas “human” development, “sustainable” development, development “with a gender perspective”, etc. are important advances to create world that is more humane, environmentally friendly, and equitable, they do not seek to change what is at the root of the accumulation and (re)distribution models inherent to capitalism.2 Taking this into account...
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...Macro Context Of Management And Organisations Stream 18: Postcolonial Stream Proposal Pedro Castellano-Masias Universidad Peruana de Ciencias Aplicadas – UPC Escuela de Postgrado en Dirección de Negocios Universidad Peruana de Ciencias Aplicadas - UPC (Postgraduate Business School – UPC) Av. Salaverry #2255, San Isidro, Lima 27, Peru, Sud America Telephone: 511 419 2800 Fax: 511 419 2828 pedrocastellano@hotmail.com pcastell@upc.edu.pe Macro context of management at organisations Prof. Pedro Castellano-Masias Introduction Management literature is frequently involved with the practicalities of bearing organisational control in order to achieve the shareholders interests (Daft, R.; 2000), (Hodge, Anthony and Gales, 1998), (Kotter, J.; 1997). It seems to be assumed that in so doing the organisations ensure their profitability and survival. Main focus is then placed on technologies of control and efficiency while criteria regarding other stakeholders’ interests are not considered. There is little or none awareness whatsoever of the situation that it is imposed to the workers and their families, there is little account of the organisational impact on the community, there is a very limited awareness and attention regarded to the environmental implications of managerial and organisational activities. In addition, not enough is being said regarding the ways in which the past is shaping the future while preserving a system of privileges and exclusion. A social system of domination...
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...Number of states increased at the UN 1989: End of power politics * End of Bipolarity – The Cold War was marked as an era of bipolarity in which the US-inspired capitalist system ‘played off’ against the Soviet-inspired ‘state socialism’. * NATO vs WARSAW PACT; US dollar system played off by COMECON * Move towards Perestroika effectively killed off competition – leading to a reduction of ideological contestation End of Ideology/ Victory of Capitalism? * Belief that capitalism ‘triumphed’ over socialism – greater expansion of capitalist norms. * TINA syndrome. With the exception of a few ‘rogue’ states, most have realized its best to ‘play’ the game and embraced market values. * Led to: * 1. The ‘Retreat of the State’ argument * 2. The ‘End of History thesis’ Post-Cold War Triumphantism * Led to the liberalization moves in the 1990s and the renewal of International Organizations * Increase in collective forms of Security * The growth and spread of the neoliberal form of capitalism that had emerged in the 1980s * Growth of regionalism * Transnational Class formulations led to an increase in global inequality and a division of labor Ethnic Revivalism * End of Cold War saw split up of ideologically based regimes * With this gone, ethnic tensions started to...
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...Friedrich von Hayek: Neoliberalism's prophet By Thomas Ponniah | November 28, 2012 * Print * Write to editor * Support rabble * Corrections * Share on facebook Share on twitter Share on email More Sharing Services 11 As the economic boom of the post-war period ended in the early 1970s, neoliberal ideology emerged as a rebellion against the statist strategies of the previous era. While neoliberalism was critical of Keynes it was also a further development of themes present in classical and neoclassical economic thought. Its most famous proponent was the economist-philosopher Friedrich von Hayek (1899-1992). His theory till the 2012 U.S. elections constituted the central intellectual adversary for the global justice movements, the leftist states in Latin America and other critics of corporate capitalism. Hayek won the Nobel Prize for Economics in 1974. The argument that he had propounded since the 1930s was that civilization was built on the liberty of individual members of society to pursue their own ends in the context of a free market and private property rights. Hayek's argument for the market as the central economic mechanism rested on his epistemological belief, interestingly analogous to Michel Foucault's views from the left, that the scientific pursuit of knowledge was inherently incapable of understanding the particular. For Hayek, the economic challenge was that knowledge is inherently decentralized; knowledge of the local is best understood...
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...the problem of underdevelopment to be due to the predatory behavior of the developed world. The neoliberal school of thought redefined underdevelopment instead to be a result of poor allocation of resources brought about by the distortionary price controls and regulations used as tools of state intervention. It posited that too much state involvement in the economy is at the root of slow economic growth. The fundamental assumption in this perspective is that an unregulated market performs better than one with government regulation. It is convinced that although markets also run the risk of failing; market failure is much less costly than government failure. Where the dependency theorists advocated the reform in the international economic system, the counterrevolution thinkers insist that the speedy solution is the promotion of free markets that are supported by permissive governments that allow the market to perform its self-regulating functions. The prescription of the neoliberals to stimulate economic growth include not only the promotion of competitive free markets but also the privatization of state-owned enterprises, the promotion of free trade, the expansion of trade through advancement in exports and the well reception of investors, and the elimination of government regulations on prices. Commanding Heights: Battle of Ideas puts together the arguments of the neoliberal school of thought as it emerged and influenced economic policy in the 20th century. The documentary...
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