Neoliberalism and Globalization Essay Example

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Neoliberalism and Globalisation


In the last few decades, neoliberalism has brought forth an inevitable and necessary outcome of globalisation, and for that reason, it has shaped economic, social, as well as educational policies. Still, free market capitalism or neoliberalism has not achieved the social as well as economic benefits. Neoliberalism has instead wreaked havoc on the global economies and devastated the environment. In the last few decades, starting with Ronald Reagan in the United States as well as Britain’s Margaret Thatcher, the media elite, the corporate and politicians have taken control of the globalisation process (the reduction of time and space) with the aim of promoting neoliberalism as world’s only solution. As it will be evidenced in the essay, neoliberalism has promised to improve reduce inequality and poverty as well as improve economic growth. As a result of neoliberalism focusing on competition, deregulation, privatisation, and dismantling of education and welfare programs excluding the capital service, it turned out to be the dominating force in the process of decision-making. Neoliberal societies are seeking to instrumentally create rational individuals capable of competing in the marketplace. The objective of this piece is to demonstrate that neoliberalism as an economic as well as political program, has promised everyone capability to gain from the globalisation benefits, but in practice there is clearly great disparity.


igorous capital accumulation facilitates the coexistence of the increased profits with the improving standards of living standards for a large percentage of the population. Still, there is no clear evidence that vigorous capital accumulation is promoted by neoliberalism in the contemporary capitalism. Kotz (2002), vNeoliberalism seems to be problematic as the contemporary capitalism’s dominant considering that the survival and stability of the capitalist system rely on the capability to facilitate vigorous capital accumulation. As mentioned by Wikan (2015), the welfare state abolition and privatisation are the main aspects of the global neoliberalism proliferation. tool for spreading free-market capitalism to nearly all countries across the globe. For that reason, globalisation has rules revolving around privatizing, deregulating and opening the country’s economy with the aim of making it more attractive and competitive to foreign investment. According to Hursh (2001) describes globalisation as a . He argues that neoliberalism and globalisation are like two sides of a coin; therefore, rejecting free-market capitalism is akin to rejecting globalisation. Neoliberalism proponents insist that free market capitalism is the main force driving globalisation; therefore, when the market forces have rules and the economy is more open to both competition and free trade, the economy will become more efficient. (Hursh, 2001) the policies advanced by neoliberalism proponents such as Thomas Friedman are almost the same: deregulation, privatisation, competition, as well as the reducing the welfare state. According to Friedman, the globalisation process is supported by the neoliberal policies Hursh (2001)As mentioned by

ignites competition that results in technological innovation given that countries are trying to improve their comparative advantage. The author emphasises that if all countries were to specialise in products that have a comparative advantage, every nation across the globe world will relatively benefit. Fridell (2012),dominant contemporary view among the majority of official international organisations, like the World Trade Organisation (WTO), the International Monetary Fund (IMF), and also World Bank. Free trade, according toFridell (2012) emphasise that this has become free trade rooted in the concept that limiting state intervention in social as well as economic interactions and removing trade barriers at both international as well as national level would lead to improved social gains. Fridell (2012) posits that neoliberalism because it results in the issue of inadequate aggregate demand over that stem from the neoliberal regime powerful tendency to reduce both public spending and real wages. Besides that, the neoliberal model results in the volatility on the macroeconomic level through renunciation of the state taxation policies as well as counter-cyclical spending by decreasing the automatic stabilisers effectiveness by shrinking programs related to social welfare and slackening the financial sector public regulation. Kotz (2002), cannot be promoted by Rapid accumulation, according to

amplifies the market economy efficiency (Chang & Grabel, 2014). They maintain that neoliberalism reduce the governmental managements influences; thus, enabling the companies to gain increased power in the market. In so doing, the companies’ products will be produced more actively leading to high profits. Consequently, interactions between producers as well as consumers will be invigorated and the market’s efficiency and size would be maximised. Neoliberalism, according to Fridell (2012), offers companies competitive power leading to their dramatic development. In addition, neoliberalism is the main globalisation power given that it encourages free trade between countries (DeLong, 1999). Neoliberalism comes with some problems; for instance, it has resulted in numerous treacherous issues likeotion the growing gap between rich and poor (Aalbers, 2013). Given that neoliberalism expands market efficiency by means of immeasurable competitions, it increased the gap between rich and poor. Furthermore, it has increased the rate of unemployment since in the neoliberalism world, people with less ability are not employed and the existing job openings are given to people with intense and diverse ability (Ward, 2012).  has many advantages; for instance, itneoliberal model Fridell maintain that neoliberalism likeProponents of

global financial market to gain access to the external financing sources. . Still, globalisation has numerous disadvantages; for instance, it creates the likelihood of opportunity to capitalise on the scale, to take advantage of synergistic benefits, to gain from geographical advantages as well as from the own market power advantages (Manolică & Roman, 2012). Globalisation has offered the multinational companies an opportunity to concentrate on activities that are most profitableglobalisation has offered them an cultural barriers and increased environmental protection. For the manufacturers, globalisation has led to reducedCalitoiu (2011), across the globe. As mentioned by individuals and corporationsneoliberalism, globalisation has many benefits; for instance, it has improved transport of goods and people and transfer of vital information between work. Essentially, the welfare state destruction destroyed the belief that the community could be depended on by people to get solutions during rough times. As an aspect of scarcereduced accessibility to the means of production; thus, resulting in increased reliance on underpaid and
has led toGiven that neoliberalism is the main driver of globalisation, over-globalisation has resulted in the destruction of numerous cultures and poor countries and developing economies are coerced to follow the economic mechanisms of developed countries. As pointed out by Quiggin (1999), globalisation concept reveals much but also obscures in the same measure. Quiggin (1999) further posit that globalisation does not force governments to espouse market-oriented reform neoliberal policies and also does not generate high labour market inequality. Instead, it is a global manifestation of the wider process through which post-war institutions have in some measure failed to handle the state’s fiscal crisis as well as the lessened Keynesian macroeconomic policies effectiveness. This failure according to Quiggin (1999) has led to the espousal of neoliberal policies at local and international level. As mentioned by Werlhof (2008), neoliberalism

(Ranald, 2015).is driven by the United States with the aim of establishing regional regulatory frameworks suitable for the majority of its powerful export industries agenda Trans-Pacific Partnership Agreement (TPP) integrates failures as well as losses into the free trade arrangement, and the neoliberal ideology depends more on fantasy. Many countries have been forced to espouse the neoliberal ideologies; for instance, the Neoliberalism only benefits one percent of the world’s population; thus, leaving billions of people in poverty. Dean (2008) maintains that neoliberalismfair trade labels have an effect on the sustainable consumption of products in the market. Still, Rousseau (2015) posits that interested in social and environmental criteria they are purchasing products and they normally utilise the packaging information to evaluate the products’ sustainability. Rousseau (2015), consumers have become more and moreGlobalisation has made it impossible for the developed countries to utilise the main adjustment instrument, competitive policy through managing rates of exchange. For that reason, the developing countries become vulnerable to the external effects on the balance (Calitoiu, 2011). According to


In conclusion, this piece has demonstrated that neoliberalism as an economic and political program, has promised everyone capability to gain from the globalisation benefits, but in practice, there is clearly great disparity. It has widened the gap between the rich and the poor and has increased the rate of unemployment.


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