Neoliberalism and its impact on Democracy after 1990s

Running head: NEOLIBERALISM AND ITS IMPACT ON DEMOCRACY AFTER 1990S
Neoliberalism and its impact on Democracy after 1990s
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NEOLIBERALISM AND ITS IMPACT ON DEMOCRACY AFTER 1990S
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Introduction
The different nation states of the world have their own set of ideologies which is often
found to be aligned to their national interest. The achievement of their nation interest is the main
priority for any country of the world and hence, it is often seen that countries are extremely
protective of the ideology which is adhered to by them. One of the ideologies which emerged in
the world during the turn of the twentieth century was that of democracy and liberalism (Giroux
2015). This political frame work was ardently advocated and pursued by the United States of
America who believed in the idea that all the countries of the world need to be free for them to
survive. This essay discusses the idea of neoliberalism and democracy as experienced by the
world from the end of the 1990s. In this context, the region of Latin America has been taken in to
consideration in order to understand how neoliberalism and democracy have changed their nation
interest and outlook in the contemporary world.
Meaning of Neoliberalism and its rise
The idea of neoliberalism is found to have its basis in the concept of the laissez faire
economy as experienced in the capitalist regions of the world (Seekings and Nattrass 2015).
Under the laissez fare economy, the different private business organizations are given the
freedom to compete with each other on a fair and competitive platform. Thus, it can be observed
that the political principle of neoliberalism emerged to give a stronger framework to the
economic designs of the market. However, under the neoliberalism form of market structure, a
certain extent of state intervention was advocated for. Neoliberalism merged in the world during
the latter half of the twentieth century.

NEOLIBERALISM AND ITS IMPACT ON DEMOCRACY AFTER 1990S
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Impact of neoliberalism on democratic policies after 1990s
Although the concept of neoliberalism has its basis in the earlier form of classical
liberalism which was seen in the beginning of the twentieth century, the underpinnings of
neoliberalism is significantly different (Jones and O'Donnell 2017). The democratic ideals of
minimum state intervention was done away with and the idea focused more on the actions of the
private players rather than on basic human needs. It also eroded the significance of some of the
main actors of the society such as the civic space, the pressure groups or the educational
institutions (Jones and O'Donnell 2017). Rather, it believed in economic growth in the face of
growing inequality. Thus, it can be observed that the aspect of neoliberalism which was seen to
be emerging towards the end of the twentieth century, was against the basic principles of
democratic ideals and a free state. Under this political ideology, there was a radical realignment
of the economic values with that of the political ideals of the state.
Impact of Neoliberalism on Latin America: A case study of Venezuela
The rise of neoliberalism can be seen in respect of certain countries of the region of Latin
America (Ethier 2016). One of the countries of this region which is seen to be facing a political
as well as an economic crisis is that of Venezuela. Hugo Chavez was one of the most prominent
leaders of this country. Initially, he tried to seize power in a failed military coup attempt in 1992
(Buxton 2018). However, soon he managed to win the presidential elections in 1998 in a legal
manner. He believed in a moderate foreign policy where he was seen to be aligned to the
objectives of the United States. However, in his domestic policies, he took a more radical view
whereby he laid emphasis on the social programs.