Assignment on Theory of Neo Liberalism
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Flinders University
Added on 2020-05-04
Assignment on Theory of Neo Liberalism
Flinders University
Added on 2020-05-04
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NEO- LIBERALISM
Introduction:As far as the history is concerned, it has been analysed that neo-liberalism is the term that isinspired by liberalism. The liberal population wanted to establish the world having unregulatedfinancial and globalised market. At this time, it has been witnessed that Western powers took allthe control on other weaker sections and countries. It has been analysed that neo-liberalismpolicies have resulted in disastrous experiences in some of the countries like Latin America andAfrica but some of the international institutions are still implementing these policies (Castree,2006). In the recent times, it has been identified that many of the Latin American countries haverestricted the use of neo-liberalism policies and started implementing the practices that arerelated to their national interest and not as per the foreign rules. It has been analysed that it is notthe economic sect that has experienced dark side under neo-liberalism but the development of thesociety and humans have also gone through some downsides after the neo-liberalism reforms invarious countries like Nigeria (Brenner, Peck and Theodore, 2010). The below discussion clearlydiscusses about the concept of neoliberalism, its history and the impact of neo-liberalism onhuman development in context of health concern, income inequality etc. Concept of neo-liberalism:Neo-liberalism is the theory or the ideology that has been developed by reforming the policies ofliberalism ideology. Neo-liberalism is the ideology that is basically based on the free market orderegulation of the policies. Globalization is one of the most important elements of brining neo-liberalism in the countries (Brenner, Peck and Theodore, 2010). Globalisation allows thecompanies to trade freely between the international markets. The major driving force behind thepolicies of neo-liberalism is the international financial institutions. The concept of neo-liberalismhas been introduced in order to bring harmony and making the one peaceful and harmoniousworld market. But, it has been analysed that there are no significant changes observed in theconditions of the developing countries as the developed countries are still dominating the freemarket (Robertson, 2004). The ideology of neo-liberalism was thought to be implemented inorder to bring global capitalism but implementation of neo-liberalism has instead widened thegap between the developed and the developing nations. The ideologies of neo-liberalism isbringing inequalities in the market and often resulting in bad governance and domination by thedeveloped countries.
On the whole, it has been analysed that neo-liberalism is the theory that is related to theeconomic theory of political framework that is proposed in order to develop the human wellbeingby providing them the entrepreneurial and business freedom through some of the policies likefree trade, freedom of markets and string property rights (Harvey, 2005). The neo-liberalism supporters argues that the instability in the economy of the world is growingbecause of the excessive regulation and interference of government in the business practices butthe critiques of this theory argues that in the case of East Asian crisis of year 1996, the majorreason for this crisis is the deregulation of the financial systems. As the regulation policies werenot there thus this resulted in situation of lending from the western banks. Western banks arguethat rather than following the free market practices, the regulated practices can be helpful for theEast Asian countries to be stable (Ward and England, 2007). The people who remain in thesupport of neo-liberalism believe that people can be served efficiently in the free marketconditions and less interference of the government and the state. According to them, the roles ofthe governmental parties should be restricted and limited to creation of market and rest should beon the shoulders of the private organisations and enterprises (Benoit, Zadoroznyj,Hallgrimsdottir, Treloar and Taylor, 2010). It has also been argued that if the people in thebusinesses are left freely to trade in the market then they will do everything to earn profit andtake optimum benefits of opportunities available in the market with mutual concerns. Neo-liberalism in context of human development:Neo liberalism is being distinguished from the theory of neo conservatism is because neoconservatism is concerned with social aspects and supports the traditional values of the familyand the society (Campbell and Pedersen, 2001). The neo-liberalism deals only with marketsituation and considered people a consumer and manufacturers. Thus, there are many negativeimpact of neo-liberalism on the human development. It was claimed that neo-liberalism is theconcept that is made for human wellbeing but in reality, it is not the case (Birch, Levidow andPapaioannou, 2010). There are many aspects of the society that are affected by neo-liberalismand thus limiting the development of humans. Some of the aspects of society that are gettingaffected are inequality, health of the people etc.
Neo liberalisation and globalisation:Neo liberalisation is the result of globalisation and privatisation. It has been analysed thatglobalisation is the process in which the companies and the business are allowed to work withthe international countries and the free trade facility is variable with the companies. Theprivatisation on the other hand results in depowering the government of the state or the countryand all the function in the countries are in the hand of the private institutions (Purcell, 2009).This stage or the phase is called as neo liberalisation phase where the business are enjoying thepower of doing business freely with the other countries and earning more and more from theforeign currencies. It has been analysed that this is bringing development to the country. Alongwith this development, there were many things that has been faced by the countries and thepopulation and that were the loss of power by the government and loss of access of the public onthe facilities that were used to be public before (Mayer, 2007). Because of privatisation thefacilities that were used by public are also in control of the private companies. This is becauseprivatisation of the government companies allows the business individuals to implement theirprocesses and policies to the company and thus raise the quality and the price of the products andthe services offered. Privatisation itself suggests that the organisation focuses on earning profitsand not focus on the welfare of the public. Neo-liberalism and inequality:Neo liberalism is not concerned about equality. According to this concept, it has been analysedthat market is the only source of goods and resources and thus the population should accept whatthe market brings. It has been analysed that since 1970”s inequality among the developing andthe developed countries are rising because of the policies of neo liberalisation. As per the reportof the international NGO called Oxfam, it has been identified that 62 individuals have the wealthof around 3.6 billion people in 2015 (Lazzarato, 2009). Only the people from wealthy sectionsare growing in terms of their wealth by 44% but half of the world population wealth hasdecreased by 41%. From a long time, it has been identified that the economists are only focusingon the growth and not on the aspect of distribution of the income (McDonald, 2012).Neoliberalism has brought growth in the economy but it has increases the gap between the richand the poor because the growth is undistributed equally among the people. Inequality has notbeen seen only in the case of income but inequality has been identified in other areas as well
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