Neo-Liberalism: the Orthodox view of Globalization

What is Neoliberalism? Broadly speaking, neoliberalism is today's pervading socio-economic ideology that stresses the expansion of commercial activity into public and non-commercial aspects of society. Neoliberalism refers to a range of economic policies that stresses the free flow of goods, services and capital across national borders; deregulation and liberalization of the economy; privatization of industry; financialization by increasing the role of domestic and foreign private investment; and corporatization of the public sector (re-organizing the state sector to resemble a corporate governance structure). The theory of neoliberalism is grounded in the classical liberal belief that free markets are naturally in equilibrium, that the expansion of free trade and the facilitation of capital accumulation leads to pareto efficient outcomes (maximizes the common good of all parties involved) and argues that unregulated private business is the most efficient form of economic enterprise. This mindset views national borders and states with suspicion, perceiving them to be "interventions" that distort the international market by inhibiting or limiting the free flow of capital, labor, goods and services in the international market, thereby leading to inefficient outcomes.

Neoliberalism is contrasted with earlier forms of capitalism, such as "embedded" liberalism, state-interventionism and the European social market models that mixed moderate levels of state-directed investment and government regulation with free-markets in the economy. The free-trade and export-led growth models of development championed by neoliberals are in inconsistent with the development strategies used by many developed countries and the East Asian tiger economies, which relied more heavily on import-substitution by developing competitive advantages before opening to foreign competition.

The practical results of neoliberal policy have led to increasing inequality, disproportionate power to transnational corporations, whose interests dominate government and international organizations such as the WTO. Neoliberal policies are imposed upon developing states as prerequisites for development loans and aid, the result of which privatizes their natural resources, reduces government spending on social services and forces developing countries to adhere to the demands of foreign corporations. Foreign ownership of national resources and industries has been likened to a new form of economic imperialism / neo-colonialism as a result - a means for multinational corporations to plunder the resources of developing countries.

Critics argue that neoliberal policies are an attempt to create new opportunities for capital accumulation to strengthen the interests of capital relative to labor, pointing out that despite increased freedom of capital flows, there is no free flow of labor across borders granting capital asymmetric bargaining power over labor and governments. In the developed world, government expenditure has not decreased as a whole - it has merely shifted from social spending to corporate subsidies. Other critics contend that neoliberalism does not represent genuine "free-trade" because it is managed by and designed to benefit large corporate interests. The contradiction between the idealistic notion of genuine free markets and free trade and the interests and power of capital (capitalism) is demonstrated by the practical implementation of neo-liberal policies.

Category:

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Tags:

• Neo-Liberalism
• Economic Liberalism
• Capitalism
• Global capitalism
• globalization
• corporate capitalism
• corporation
• big business
• lassiez-faire
• world trade organization
• G8
• world bank
• united nations
• managed trade
• free trade
• liberalization
• privatization
• Structural
• Adjustment
• Program
• third
• world
• debt
• financialization
• deregulation

[FRSFreeStateES]

There's no such thing as "neoliberalism" its a myth made up by the Far Left. What there talking about is liberalism which is what they don't believe in. Because they believe in Democratic Socialism which is different from liberalism.

[Battlecry17]

@FRSFreeStateES Neoliberalism is simply a category denoting the current globalization trend based on the theories of neoclassical economics. The term is accepted by both those on the right and those on the "left" as an analytical category.

The major distinction between classical liberalism and neoliberalism is their underlying economic theories (classical economics vs neoclassical economics), the role of financialization and extent of globalization that is possible today.

[FRSFreeStateES]

@Battlecry17

See I view Neoliberalism as centrism but centrism and liberalism are two different Political Ideology's. The Far Left came up with this term Neoliberalism to describe people as they see as Centrist Democrats. The New Democrat Group as example.

[Battlecry17]

@FRSFreeStateES Neoliberalism would be considered right-wing because of its underlying principles and theories, and the fact that its policies end up promoting the interests of capital.

If for simplicity's sake, we say socialism = Left and Capitalism = Right, then a truly "centrist" position would be something like market socialism (public ownership combined with capital accumulation) or a transition between capitalism and socialism. The views of Democrats would thus be very much to the Right.

[davehutchinson67]

@Battlecry17 NO, people must work locally but still have cooperation with other nations and societies...I'm so sick of these NGO non govt orgs...(WTO, IMF etc) dictating that capitalism usurps everything else. To me, capitalism is slavery...now anyway.

[chuckthebull]

"""Neo liberalism and most liberals believe"""...FALSE..you have allowed Neoconservatives to hijack these words and distort their meanings as a means to demonize to discredit liberals in general..a systematic purposeful dishonest and despicable act perpetrated by the neocons and zionists as well as the banking corporate mafias they run...

[tehatemachine]

Neo liberalism and most liberals beleive. That if one man benefits. The other must loose. completely Wrong and proven wrong. In free trade both sides benefit. Regulations create monopolies.

[nickfl1980]

NGO non govt orgs...(WTO, IMF etc) do not represent CAPITALISM. Truth is..they represent CRONY Capitalism = Feudelism (Neo Feudelism)

[MrBigEnchilada]

neoliberalism and neoconservatism seems to be aiming for the same goal, which is oligarchy?

[mone1303]

Critics argue that neoliberal policies are an attempt to create new opportunities for capital accumulation to strengthen the interests of capital relative to labor, pointing out that despite increased freedom of capital flows, there is no free flow of labor across borders granting capital asymmetric bargaining power over labor and governments.

[wtfjaftw]

@Battlecry17 LOL! If anything their begging to buy their stuff, and guess who benefits? The producer, the reason why it's cheap because it doesn't have the burden of the state on it. You just as bad as the neo-conservatives. lol

[scline6]

Pilger talks like he has the magic recipe to solve poverty. It sounds like he's proposing world socialism since that would be the only way to get wealth to poor areas besides relatively free trade, which he despises. No doubt the IMF, WorldBank, and WTO represent money interests considering that all capital has strings. It's a pretty naive view to think they can be replaced by institutions that won't behave in the same way as the current ones.

[zakithegreendaybuff]

in which world is Melbourne a "western country"?

[davehutchinson67]

@FRSFreeStateES That's right...and it's crazy fuckers like him who have caused so many so much fucking pain...it's time for the people...