...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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...The essence of neoliberalism | As the dominant discourse would have it, the economic world is a pure and perfect order, implacably unrolling the logic of its predictable consequences, and prompt to repress all violations by the sanctions that it inflicts, either automatically or - more unusually - through the intermediary of its armed extensions, the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) and the policies they impose: reducing labour costs, reducing public expenditures and making work more flexible. Is the dominant discourse right? What if, in reality, this economic order were no more than the implementation of a utopia - the utopia of neoliberalism - thus converted into a political problem? One that, with the aid of the economic theory that it proclaims, succeeds in conceiving of itself as the scientific description of reality?This tutelary theory is a pure mathematical fiction. From the start it has been founded on a formidable abstraction. For, in the name of a narrow and strict conception of rationality as individual rationality, it brackets the economic and social conditions of rational orientations and the economic and social structures that are the condition of their application.To give the measure of this omission, it is enough to think just of the educational system. Education is never taken account of as such at a time when it plays a determining role in the production of goods and services as in the production...
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...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 free trade (Harvey, 2005). There is a criticism to Neoliberalism states as it is described and said to be designed to reduce poverty and other inequalities however it is more tailored to meet the needs of capitalism and a global scale (Kothari, 2002). I believe a term or a section we should look at when looking at Neoliberalism is ‘economic liberalism’ which is the belief in that the state...
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...Name: Gunel Aliyeva Group: 2 Title: Home essay Instructor: Tural Mammadov Question: How are the differences between these two types of capitalism affecting the current phase of globalization? Answer: Neoliberalism – “Liberalism" can refer to political, economic, or even religious ideas. "Neo" means that a new kind of liberalism. Neoliberalism is a set of economic policies which there is the role of state is minimal emphasis on individualism, it means that in the neoliberal countries the government don’t interference to the market of economy. But the government helps to the removal of all barriers to commerce, and the privatization of all available resources and services. On the other way these are the goal of neoliberal economic globalization. That’s why this capitalism affects globalization process effectively. Statism- another type of capitalism which is the concentration of economic controls and planning by a highly centralized government that often extends to government ownership of industry. It means that the government to regulate markets, control profits, direct economic investment. In contrast to neoliberalism, statist capitalism don’t allow development of globalization. This is very differences between neoliberalism and statism. Question: What are the implications of the stronger presence of statist capitalism for international trade, international business and economic development? Answer: According to the comparability, international trade is more restricted...
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...Neoliberalism Definitions An approach to economics and social studies in which control of economic factors is shifted from the public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private property and back deregulation. The use of the term "liberal" in economics is different from its use in politics. Liberalism in economics refers to "freeing up" the economy by removing barriers and restrictions to what actors can do. Neoliberalism's policies seek to create a laissez-faire atmosphere for economic development. "Neo" means we are talking about a new kind of liberalism. Main points 1. THE RULE OF THE MARKET. Liberating "free" enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes. Greater openness to international trade and investment, as in NAFTA. Reduce wages by de-unionizing workers and eliminating workers' rights that had been won over many years of struggle. No more price controls. All in all, total freedom of movement for capital, goods and services. To convince us this is good for us, they say "an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone." It's like Reagan's...
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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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...Globalization and Neoliberalism The process by which businesses or other organizations develop international influence or start operating on an international scale. Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages. Globalization is not an inevitable process and there are risks and costs: -Inequality: Globalization has been linked to rising inequalities in income and wealth. Evidence for this is a rise in the Gini-coefficient and a growing rural–urban divide in countries such as China, India and Brazil. -Inflation: Strong demand for food and energy has caused a steep rise in commodity prices. Food price inflation (known as afflation) has placed millions of the world’s poorest people at great risk. -Macroeconomic instability:...
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...to control individual from their family and community life to work place. Rational control expanded in almost all social areas such as household management, social work, psychotherapy, industrial psychology, etc. Furthermore, the social regulations were concentrated within a national frame. All social areas are controlled and bounded nationally. Thirdly, it was encouraged individuals to be more rational and autonomous for their own decisions through instutions such as family, school, psychology, workplace. In the post-89 era of postfordist globalisation, firstly, there was a major shift to denationalization and transnationalization in terms of social interactions. The social regulations and policies such as banking regulation, labor standards, environmental regulation and counterterrorism started to regulate at transnational and international levels. Secondly, there was also a process of desocialization at the same time. Countries found themselves...
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...It is understood that the general characteristic of neoliberalism is to emphasize and expand the market by increasing transactions and conducting trades to help reinforce the economic power of the latter. Every action is a competitive, market transaction that can occur in a short time or at a fast rate. Economic policies that are promoted by governmental organizations like IMF and structural adjustment programs adequately re-distribute resources from the poor to the rich, which may create poverty and inequality. However, the repayment of debt from these governmental organizations has resulted in deproletarianization. The neoliberal economic model is deemed unsustainable because not all countries have access to the same resources and benefits. In addition, neoliberalism does not fully account for gender and racial divisions of labor that is an obvious feature in the global economy. For example, many people who are already living in poor countries who need to obtain access and control over resources they need to survive such as, food, water, shelter, and clothing are limited and declining. This issue of inequality is focused on women because they are often responsible for providing food and other necessities for their families. In order to overcome inequality and reach a balance of accessing resources and government benefits within countries and people, re-distribution should be overturned. Obtaining access to resources and a healthy environment is a product of human rights and...
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...Counteracting the global economic crisis: values, institutions, policies. When talking about the broad and complicated subject of economic crisis, it is important to mention ideas concerning neutralization of its consequences and prevention of future calamities. The current disturbance in the global economy requires not only to understand how it was initiated, but also how to counteract and draw conclusions from it. The Chinese proverb says: “may you live in interesting times.” These times are now- financial markets are in turmoil, China is rising as economic power, young people from Europe and America are protesting against, what they see as ineffective government and regulations. In next years the world will change even more- also thanks to changes, that will be made as an answer to the global economic crisis- in terms of values, necessary institutions and policies. The first step toward ending the crisis is to introduce new regulations, that would stabilize the market. Since 1980’s the American financial market has been experiencing a long period of deregulation. Although the obvious results of this move- the example can be the deregulation of savings and loans companies, that led to crisis in 1989, the process continued. Decade later, in 1990’s the new market instruments- derivatives, became increasingly popular. Although, their allies argued that they would stabilize the market, the opposite happened. Any attempt to regulate hedge funds was cut out by Commodity...
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...After gaining independence, Ghana’s economy had reached a state of crisis and therefore, certain International Financial Institutions (International Monetary Fund and World Bank) had intervened. The goal for Ghana was to pursue economic growth at all costs and seek to achieve through the increase of the Growth Domestic Product and the Growth National Product. Structural adjustment programs (SAP) (designed by the World Bank and IMF) had begun being implemented by the Provisional National Defense Council (PNDC) and National Democratic Congress (NDC). SAPs can be defined as “the process by which key institutions and policies are reconstructed with the intent on advancing economic growth”. This involves increasing economic dependency and diversifying economic resources. While looking at Peter Arthur’s opposing argument that the IFIs and their strategies were detrimental to Ghana’s economy - Kwadwo Kanadu-Agyemang and Darko Kwabena Opoku believe that these strategies and SAPs were beneficial to Ghana’s economy, only to a certain extent. This essay will aim to identify certain criticisms of Ghana undergoing the SAP as well as which sectors of the SAP were beneficial to Ghana. Furthermore, this essay will identify that the ‘imposition’ of the SAPs was indeed necessary and less destructive than its critics state. Colonial rule ended for Ghana in 1957 and they became politically independent and they were “the first country in sub-Saharan Africa to do so”. Ghana had ebeen the world’s...
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...C T In this article, I examine the codification of an Italian work-related illness caused by mobbing, a type of psychological harassment that emerged at the moment neoliberal policies transformed Italy’s historically protectionist labor market. I trace how the medicalization of mobbing has expanded workers’ access to compensation, resources, and discursive tools for criticizing neoliberal labor conditions, even as it has produced new structures of surveillance. I unravel the neoliberal politics of a state that protects workers’ health yet governs worker–citizens through an apparatus of medical experts. I find that workers’ labor problems are experienced and managed as bodily problems in ways important to remaking Italian citizenship. [neoliberalism, state, labor, biopolitics, citizenship, bodies, Italy] An institution, even an economy, is complete and fully viable only if it is durably objectified . . . in bodies. —Pierre Bourdieu1 It was the spirit of capitalism made flesh. —Upton Sinclair2 n 2003, a new psychophysical disturbance, organizational coercion pathology (disturbi psichici e fisici da costrittivit` organizzativa sul a lavoro), or OCP, became a work-related illness that was insurable by an Italian state public-health institution (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro [INAIL] 2003).3 Telltale symptoms, often likened to those of posttraumatic stress disorder (disturbo post traumatico del stress), include anxiety and depression. According...
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...Essay Topic One: Explain some of the criticisms of neo liberalism and economic rationalism. How is the third way seen as an advance on neo liberalism and what do critics make of the third way? Neo liberalism and the Third Way Neo liberalism and economic rationalism, synonymous with globalisation, gained prominence during the 1990s as a political ideology that espoused free markets as a method of not only handling affairs of nations, but also as political ideology that can be applied with all sorts of governance issues (Hartman 2005, pp.57-59). The idea was that “market forces would motivate workers and produce a vibrant economy” and that “government interference” through “high taxation and investment in the public sector services, lessened individual freedom and hindered a nations economic progress” (Rees 1994, p.172). Emphasis was placed on costs to the government being shifted back to private individuals and markets (Hartman 2005, p. 59). This would create a situation where markets would flourish with increased competition and reducing the tax burden (Hartman 2005, p.59). This came at the cost of the social state (Rees 1994, pg.171) as countries sought to create “market friendly, liberalized, lean, decentralised, customer orientated, managerial and democratic state[s],” (Bangura 2000, p.17). In Australia the conversion of public services into market commodities and increased privatisation of public provisions (Jimrozik 2005, p.42) found a scapegoat in the welfare state (Rees...
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...Liberalism for World Development Hubert H. Humprey stated that liberalism, above all, means emancipation - emancipation from one's fears, his inadequacies, from prejudice, from discrimination, from poverty. That could not be further from the truth in the world of economy. Collaboration and agreements among countries are very important in today’s world development. Economies that have remained closed from the rest of the world have not been able to attain and sustain growth. Many developing countries have gained competitive advantages and growth by implementing open market and trade liberalization. Only through liberalism can economic potential be unleashed. Trace back to origin of liberalism, the Italian merchants wanted more freedom and rights and encouraged free trade in order to move towards a more liberal, innovative system. We will show you that free trade and innovation are the only viable and compatible models for development. We will also show that inevitably the world is moving towards embracing the liberal model. South Korea and Chile are two countries that transformed their economies from the poorest to the one of the best performers. They were both politically ruled under authoritarian regime but later on they all adopted liberal economy. In South Korea, post economic reform, their economy went to another level. GDP hits $1 trillion in 2007. South Korea is one of the fastest growing economies in the world, a huge contrast to its northern neighbor...
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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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