...few decades, research has shown a clear connection between the ideals of neoliberalism and social inequality. According to A Brief History of Neoliberalism, neoliberalism is defined as a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong property rights, free markets, and free trade. Beginning in the 1970s and 1980s as political philosophy rooted in classical liberalism with a focus on free markets and economic growth, the definition of neoliberalism has changed quite a bit over the last few decades. The evolutionary dynamic of neoliberaliztion has been such as to force adaptations that have varied greatly from place to place as well as over time. Any attempt to piece together a picture of what a typical neoliberal state looks like today would prove to be a difficult task. The somewhat chaotic evolution and uneven geographical development of state institutions, powers, and functions over the last thirty years suggests that the neoliberal state may be an unstable contradictory political form. The effects of this economic philosophy are especially obvious in Latin America, where many nations faced debt crises directly related to neoliberalism. The overall result was an awkward mix of low growth and increasing income inequality. In Latin America, where the first wave of forced neoliberalization struck in the early 1980s...
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...Assessment 2: Major Essay What is neoliberalism and how is it connected to 'development'? Neoliberalism, quite simply, is defined by David Harvey as the: … theory of political economic practices that proposes that human well-being can be best advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterised by strong private property rights, free markets and free trade... (2007, pg 2) Through this approach, economic and social barriers and constraints are sought to be eliminated to prompt the market towards becoming self-sufficient. Therefore, it is very easy for neoliberalism to hinder the development of economies and society, as imbalances in wealth and living conditions are emphasised and expanded over time. In particular, these imbalances become quite prominent in developing countries, for example, Brazil, where they may begin to take importance over the conditions of the population. Despite this, we are still observing the existence of neoliberalism in the 21st century on an international scale as the globalisation era lingers and development continues to evolve. In the modern world, neoliberalism offers ‘the supporting ideology of globalisation’ and depends on market forces, free trade and laissez-faire government roles to become efficient. (Heron, T. 2008. Pg. 1;Kelleher, A and Klein, L. 2011. Pg. 95) It was in the late eighteenth century when Adam Smith originally formulated the idea that in an economy, priority...
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...ISI Transformation: political changes: Wage increase Improved working conditions Political inclusion in the … Negative of ISI: (characterized by two different stages) Agricultural becomes uncompetitive -exchange rate: money is over-value, the price will be higher than the other countries. Keep the domestic currency strong relative to foreign currencies Need to import capital goods (machinery) to produce consumer goods Overvalued exchange rate made commodity exports artificially expensive and therefore less competitive in the international market - agricultural production and its social consequencs: agricultural production stagnated rural wages declined –migration to the cities migrants resided in urban slums increase in the size of the informal sector Exhaustion of the first stage - limited dynamism 1st stage: production stage : substitution industrialization light industries- the easy phase required little technologies most financed by domestic business 2nd stage: deepening of industrialization required more sophisticated technology and know-how domestic business (main loser) could not finance the second stage multinational corporations were invited to invest in Latin American tensions within populist multi-class coalition Inflation Erodes the purchasing power of currency Affects the poor, who can’t store their wealth in assets that do not lose their value (property) A highly organized and politically mobilized working class demands wage...
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...A Criticism of Neoliberal Policies as a Method of Development * Neoliberalism is a philosophical theory that uses market value as the primary method of evaluating all aspects of life. Thus, the market is seen as the template for all other activities within a society, even those that involve an ethical dimension. (Paul Sukys, 2009) Thesis Statement: The pro-market principles that neoliberalism encourages do have benefits that, if managed realistically, are means of development and sustainment for countries worldwide. * “The neoliberal doctrine emphasizes competition over cooperation and in doing so encourages each individual to pursue his or her own well being, thus effectively creating "companies of one" who will sell whatever they possess (talents, property, abilities, education, and so on) in order to accumulate "points," in whatever way those points may be defined within a given system.” (Jason Read, 2008) * “Neoliberalization has not been very effective in revitalizing global capital accumulation, but it has succeeded remarkably well in restoring, or in some instances (as in Russia and China) creating, the power of an economic elite...” (David Harvey, 2007) * Neoliberalism is an ideology, method of governance, and a set of policies which originated out of classical liberalism and as a backlash to Keynesianism during the early 1980’s (Steger and Roy 2010:10-11) * Neoliberal intellectuals insisted that the ‘free market’ was a superior mechanism for...
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...3 Life after Burnham: Economic revival and the obstacles to sustainable development Investigating the factors that have led to significant underdevelopment in Guyana, what practical solutions can be suggested to help improve the economic and political performance of this state? Burnham’s death whilst undergoing throat surgery in 1985 brought a natural end to the PNC’s cooperative socialist regime; a regime that caused two decades of extreme terror and suffering to all in Guyana, as explored in chapter two. The need for change was undeniable and such an event provided Desmond Hoyte ‘with the opportunity to break with some old PNC practices’. The recognition of the need for free enterprise in order to re-stimulate the optimism of a whole population formed the basis of Hoyte’s, and subsequent presidents’, prevailing actions. This chapter sets out to explore the extent to which Guyana has since broken free from the shackles of socialism as a result of various government and international institution-led initiatives, and explores the impact on Guyanese development as a result. By analysing the initial success of the IMF-World Bank backed austerity and recovery program implemented in 1988; CARICOM’s aim to break down the divide between the ‘core’ states and the Caribbean as a ‘peripheral’ region; and the effect of regular financial aid as a result of Guyana’s status as a heavily indebted poor country (HIPC), one quickly realises the apparent commitment of Guyanese governments...
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...Part of a series on Liberalism Development[show] Ideas[show] Variants[show] People[show] Organizations[show] • Liberalism portal • Politics portal • v • t • e • 1. • • • • • • • • • • Words such as liberal, liberty, libertarian, and libertine all trace their history to the Latin liber, which means "free". One of the first recorded instances of the word liberal occurs in 1375, when it was used to describe the liberal arts in the context of an education desirable for a free-born man.[13] The word's early connection with the classical education of a medieval university soon gave way to a proliferation of different denotations and connotations. Liberal could refer to "free in bestowing" as early as 1387, "made without stint" in 1433, "freely permitted" in 1530, and "free from restraint"—often as a pejorative remark—in the 16th and the 17th centuries.In 16th century England, liberal could have positive or negative attributes in referring to someone's generosity or indiscretion.[13] In Much Ado About Nothing, Shakespeare wrote of "a liberal villaine" who "hath...confest his vile encounters".[13] With the rise of the Enlightenment, the word acquired decisively more positive undertones, being defined as "free from narrow prejudice" in 1781 and "free from bigotry" in 1823.[13] In 1815, the first use of the word liberalism appeared in English.[14] In Spain, the Liberales, the first group to use the liberal label in a political...
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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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...He defines neoliberalism as “a system that positions the market as the answer to everything” and as a general shift from public services to private market (McRuer 2011). This form of politics assumes that a capitalistic market is irrevocably good and sensible and that market deregulation is the answer to everything while promoting institutions such as marriage and military. For queer people, this leads to a mainstream LGBT focus on market, family, and military-based inclusion rather than ending issues facing queer people of color or queer people living in poverty or transgender people or any queer people who do not want to join these normative institutions. Disabled people are also excluded from these institutions, but it is a different form of exclusion, an exclusion based on the idea that disabled people are not capable of contributing to capitalism and therefore are not truly people within American society. Neoliberalism tends to lead to anti-poverty type measures that supposedly focus on the “causes” of poverty without acknowledging that, without capitalism, there would be no poverty. Both disabled and queer people are more likely to live in poverty, but this does not mean that disability or queerness cause poverty. Only capitalism, neoliberalism, and the globalization of these values have that power. Ruer...
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...Futility of International Environmental Governance The increased frequency of irregular climatic events, among which are violent hurricanes, whirling tornados and record-breaking temperatures has resulted in an amplified concern in the changing climate. “Certainly, this is no coincidence; extreme circumstances often serve to galvanize public attention.” These rising trends of environmental awareness have superseded individual societies. Resultantly, there have been countless efforts of working towards pragmatic solutions to environmental concerns by means of global governance as an international collective. “The distinct characteristics of global governance lies in the assumption that the effective handling of problems is no longer the exclusive responsibility of government but of joint activities by governments, international and supranational institutions.” This understanding of global interconnectedness has incited the creation of numerous organizations, institutions and international environmental initiatives, specifically the Kyoto Protocol. However, environmental impediments have not seen notable improvements and can be attributed to the flaws of global environmental governance. Firstly, contributing to the failure of environmental policies is the ineffective structure of the Kyoto Protocol. Furthermore, with the rise of globalization, neoliberal ideals have prioritized market successes at the detriment of the environment and international environmental initiatives....
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...number of stakeholders on either side to speak out. Proponents of the project view the canal as a mechanism to bolster the country’s economy through increased foreign investment, free-market trade, and the creation of thousands of jobs for Nicaragua’s citizens. Opponents of the canal point to the drastic environmental impacts of the construction, as well as the resulting number of displaced locals, among a number of other concerns as reasons to prevent the project from occurring. Ultimately, the sociopolitical and economic ramifications of the Nicaraguan Canal provide important insight into the roles of globalism, neo-liberal politics, and changing fiscal policy in reshaping contemporary Nicaragua, as well as Latin America as a whole. In The Anthropology of Latin America and the Caribbean, Sanabria offers multiple interpretations of the phenomenon of globalism, suggesting that globalism is “a wide ranging economic and cultural process swiftly connecting in manifold and intricate ways peoples, cultures, and societies through the globe” (Sanabria, 2016). In the context of the Nicaraguan Canal, the effects of globalization are immediately evident in the funding sources for the project. Wang is the head of HKND, a transnational company that is spearheading the proposed construction. Daley touches upon the mystery surrounding the company’s interest in the project, suggesting that HKND’s involvement in the canal may be a product of China’s increasing investment into Latin American countries...
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..."Structural adjustment policies in Africa." International Social Science Journal 51(162): 521-528. Broad, R. and J. Cavanagh (1999). "The death of the Washington consensus?" World Policy Journal 16(3): 79-88. Cleary, S. (1989). "Structural Adjustment in Africa." Trocaire Development Review 1989: 41-59. Dollar, D. and A. Kraay (2001). Trade, growth, and poverty, World Bank, Development Research Group, Macroeconomics and Growth. Escobar, A. (1992). "Culture, economics, and politics in Latin American social movements theory and research." The making of social movements in Latin America: Identity, strategy, and democracy: 65-82. Fine, B. (2002). "Economics imperialism and the new development economics as Kuhnian paradigm shift?" World Development 30(12): 2057-2070. Godard, P.-P. K. and J. H. Williamson (2003). After the Washington Consensus: restarting growth and reform in Latin America, Peterson Institute. Gore, C. (2000). "The rise and fall of the Washington Consensus as a paradigm for developing countries." World Development 28(5): 789-804. Hamilton, C. (1989). "The irrelevance of economic liberalization in the Third World." World Development 17(10): 1523-1530. Harriss, J., et al. (2003). The new institutional economics and Third World development, Routledge. Helleiner, G. K. (1992). "The IMF, the World Bank and Africa's adjustment and external debt problems: An unofficial view." World Development 20(6): 779-792. Husain, I. and R. Faruquee (1994)...
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...SOCIAL CHANGE Neoliberalism specifically refers to economic changes that also bring about changes in public policy, economic policy, the distribution of income and wealth, the weakening or elimination of labor, increased impoverishment, increased mass powerlessness, and even sometimes war and torture (class notes). For Klein neoliberalism is the rule of the market and corporations over the state therefore, meaning over the people. In her novel, The Shock Doctrine: The Rise of Disaster Capitalism she gathers together decades of economic catastrophes made by the United States, the IMF and the World bank. In this novel Klein is pushing to expose capitalism’s true nature,“ a policy the breeds poverty and crime” (Georgi Arbatov). Klein’s basic thesis and main point is that neoliberalism is dominating the world by using public disorientation such as wars, terrorist attacks and natural disasters to push through reforms that are not accepted. The introduction of the book Klein talks about the disaster in New Orleans, Hurricane Katrina, one of the many examples she uses to support her thesis, and how the Louisiana State Legislature in Baton Rouge were using this tragedy as an opportunity to change New Orleans. They spoke about building condos now that public housing was finally gone. One congressman said, “ We finally cleaned up public housing in New Orleans. We couldn’t do it, but God did”(page 4). Klein recalls what some of the victims commented on when they...
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...The post-WWII era was a period that brought about significant global social and economic change. With the conversion from domestic to export production due to increasing domestic production costs, First World nations sought after Third World labour as a way to reduce production costs. The rise of Third World industrialization, or newly industrialized countries (NICs), in the 1970s and growing throughout the rest of the century allowed the First World to keep up with rising consumption rates while keeping labour costs low. To represent the shift to export production, and to serve firms seeking lower wages and Third World governments seeking capital investment, export processing zones (EPZs) were created. Most EPZs are located in developing countries, and these zones attract employers as a solution to domestic production while also taking advantage of reduced trade barriers set up by the host nation in an attempt to reduce poverty, unemployment, and stimulate their domestic economy. The creation of these EPZs supported the rise of neoliberal globalization and the free market system throughout the latter half of the 20th century, which stated that the private sector would determine state priorities. This paper will examine the rise of EPZs and their connection to neoliberal globalization, as well as their relationship to the debt crisis of the 1980s and the growth of structural adjustment programs. With the Cold War immediately following WWII, countries were divided into a class...
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...Since the end of the second world war, many East Asian economies have seen a “miraculous” growth. And with so many other nations still in poverty, economists and leaders are turning their eyes towards the “East Asian tigers” to see if they can replicate their results. When looking at the facts it is obvious that the the circumstances facing the East Asian nations were quite different than the ones that nations face today. But outside of these differences a loose model of the East Asian miracle can be utilized in Third World nations today and, considering the high success rate of so many of the East Asian economies, would most likely see positive results. The secret to success of East Asian economies is the hand that the government has had in industrial affairs. Starting in the 1950s nations like china began taking steps towards centralized government through reform. One example of this would be the Chinese land reform of the 50s under the new Mao Zedong's communist regime (Blecher, 2010:p.27). This land reform took away the oligarchic control of the landlords, changing the feudalistic policy of landlordism over to a more capitalistic form of socialism in which the government has the control. This is clearly a very vital part of the industrialization process as many nations that have failed with the agrarian reform continue to find themselves struggling to get out of poverty. A modern example of this would be Brazil, where the rural landlords have stalled any sort of reform that...
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...Introduction As the strongest country in the world, America can done all kinds of oppressions onto any country that US like either through strong military force, from economic way and also social of that country. American corporations and popular culture has actually affects the lives and infect the indigenous cultures of millions around the world. Due to the foreign policy of the US government, backed by its military strength, has unprecedented global influence now that the America is the world’s only superpower-its first ‘hyperpower’. America lead all the ways whereby it exports its value systems, defining what it means to be civilized, rational-indeed, what actually it is to be human. Apart from that, America itself is impervious to outside influence, and if most Americans think of the rest of the world at all, it is in terms of deeply ingrained cultural stereotypes. Many people do hate America from Middle East to the developing countries as well as in Europe. Along with the happening of tragedy 9-11, public has focused on the question-‘Why do people hate America?’ This is a loaded question and not simply a statement. However, it would not be weird if people hate America as they often oppressed many other weaker countries especially countries from the Third World. The oppressions done by America can be grouped into three major ways that are politically, economically, and from the social aspect too. Politics The brand of external interventionism adopted by...
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