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Luksika Parkjit 5545921329

Neoliberalism is a theory that try to make trading between nations
easier. Neoliberalism is about freer movement of resources, goods and
enterprises in a bid to always find cheaper resources, to maximize profits
and efficiency. Therefore, to accomplish this, neoliberalism requires the
removal of various controls deemed as barriers to free trade, such as tariffs,
regulations, certain standards, law, legislation, regulatory measures and
restrictions on capital flows and investment. Include, reducing public
expenditure for social services, such as health and education, by
government. Changing perceptions of public and community good to
individualism and individual responsibility. Because the goal of Neoliberalism
is to be able to to allow the free market to naturally balance itself via the
pressures of market demands.
Neoliberalism arose as a major paradigm shift facilitated by the
conjuncture of a number of eventualities: persistent and intractable
recessions beginning in the 1970s for which standard economic policy tools,
primarily based on Keynesianism, appeared ineffectual; the impasse in
economic policy at national and global levels; and the unsustainability of
some welfare regimes, including those of social democracy, in the developed
world in the face of recessionary trends and fiscal constraints. In the context
of these developments, proponents of neoliberalism saw the state as the
major constraint on the efficient operation of the market and the
resuscitation of growth at both national and global levels. Accordingly,
neoliberalism directed its criticism against what was seen as an
overextended role of the state in the economy consequent upon
Keynesianism, socialism, and social democracy. Thus the main thrust of
neoliberalism entails the need to roll back the state by restricting its role to
the provision of pure public goods and the need to ensure that the state
provides the appropriate environment for the market to operate by
protecting property rights and associated contractual obligations, facilitating
the free mobility of resources within and across nations, and ensuring safety
and security.
As the term is applied in the early 2000s, neoliberalism refers to an allembracing economic and political ideology that advocates the supremacy of
the market over any alternative social arrangements, viewed from both a
comparative and historical perspective, in ensuring the efficient allocation
and utilization of scarce resources for the maximum satisfaction of relatively
unlimited human wants. The market, based on freedom of choice and respect
for private property and individual rights, and underpinned by competition
among producers and consumers alike, is seen as the ideal and optimal
vehicle for the realization of human ends. Thus neoliberalism leads to the
conclusion that individuals, rather than collectives, are the best basis for
decision making and that the role of the state (or any similar collective
agencies) should be limited to creating and ensuring an environment
conducive to individuals freely and competitively making decisions and
choosing between alternatives, thereby facilitating and consolidating the
expansion of the market and protecting private property rights, and to the

This has been used as a justification to initiate campaigns for regime change in some countries.Luksika Parkjit 5545921329 provision of pure public goods. with minimum government involvement. misuse of the . such as the United States and the United Kingdom. neoliberalism has extended its terrain to the analysis of political and social behavior and arrangements to justify the superiority of the market as the major guarantor of both economic and social welfare. However. A philosophical assumption is made that human beings are driven by self-interest and that society is best advised to accommodate this drive since the welfare of society as a whole is best maximized by ensuring that individual self-interest is promoted and satisfied. even if the result is income and wealth. At the political level. The philosophical assumptions about selfinterest and freely arrived-at choices under conditions of competition have been relied upon to develop mathematically rigorous economic theories aimed at demonstrating the superiority of the unfettered market as a form of economic organization. but it insists on the recognition that individuals have different capacities and potentialities which should be allowed to flourish. Neoliberalism has benefited from the support of key national and global-level corporations whose influence is exerted through their ability to shift funds instantaneously across the globe in response to changing environmental conditions. This recalls the "invisible hand" notion of the market in enhancing economic welfare articulated by Adam Smith in the eighteenth century in his The Wealth of Nations (1776). inequalities are seen as a major impetus to maximizing individual self-interest because inequalities require greater exertion and effort to acquire the most from the market. More generally. fairly effective sanctions and incentives are deployed throughout the value chain to ensure compliance with. cannot be provided for efficiently by the market. Indeed. indeed. The foregoing tenets of neoliberalism are based on certain assumptions. Neoliberalism has also fostered a value chain that begins with theoretical activity in academia and various research institutions and feeds into various institutional vehicles that uphold and promote particular aspects of the neoliberal paradigm. right up to the production and reproduction of policy advisors and implementers who attempt to sustain and implement the policy implications of the paradigm at national and international levels. by definition. neoliberalism accepts that individuals are formally equal and that they possess civil liberties that should be respected and protected. neoliberalism has negatively affected large numbers of people though retrenchments. the neoliberal agenda. and through key multilateral and bilateral financial. trade. In addition. and development agencies. The neoliberal agenda has had a tendency to effectively close out any competing ways of looking at economics and economic policy. through financing various activities in the value chain and influencing policy in the government of developed countries. to the protection of this way of life. the promotion of neoliberalism approached tyrannical levels with some governments. seeing any challenge to neoliberalism as a challenge to a national way of life—and. degradation of work. which. or promotion of. Politically.

In the developed countries. increased poverty. In addition. particularly those in Africa.Luksika Parkjit 5545921329 environment. It is clear. and new syntheses of approaches have been proposed. South Korean. while the net social gains have been spurious and remain quite open to debate. The early-twenty-first-century consensus on the creative manner in which the East Asian Tigers (Taiwan. and Hong Kong) combined the roles of the market and a proactive state have also done much to deflate the dogmatic opposition to the state advocated by neoliberals. some have worked toward synthesizing lessons from neoliberalism with those from social democracy. however. the pursuit of structural adjustment and stabilization programs has not yielded the desired benefits in either inclusive or equitable growth." Finally. yielding what has been labeled the "postWashington Consensus. as in the development of Poverty Reduction Strategy Papers (PRSP) associated with the Highly Indebted Poor Countries (HIPC) debt initiative of the Bretton Woods Institutions. The neoliberal agenda has begun to include welfare issues by supporting the promotion of sustainable livelihoods. particularly in developing economies. particularly as to whether methodological individualism assumed in the model. from a philosophical point of view. and poverty reduction. At the theoretical level. it appears that neoliberalism has peaked as its presumed benefits have become more questionable and as the ideology is challenged from a number of quarters. In these countries neoliberalism has had the consequence of jettisoning any semblance of development or strategic planning that those countries had attempted prior to the adoption of the recent economic reforms. and the economics of risk and uncertainty are beginning to question neoliberal assumptions and prescriptions regarding the role of the state. Singapore. In developing economies. social safety nets. particularly those in the non-formal sectors of the developing world. which should be the aim of development." At another level. there is less of a dogmatic stance on the nature and content of policy packages comprising economic reform initiatives. that some financiers and corporations (and some countries in the developed world) have benefited immensely. given that neoliberal policies have tended to be unilaterally imposed. the contributions arising from the new institutional economics. In the wake of these challenges. the economics of information. The empirical evidence supporting neoliberalism is mixed in the developed world and is particularly dismal in the developing world. resulting in the proposal for a "third way. and marginalization of nationalities and households. the social implications of neoliberal policies have undermined social safety nets with no viable substitutes emanating from the market. Nevertheless. And at the social and political level. so that the economies are currently in dis-array. the assumptions underlying the neoliberal model have also been challenged. to the exclusion of other plausible assumptions that could be . More generally. global movements have arisen to challenge neoliberal policies. shifts have begun to occur in the neoliberal camp in the early twenty-first century. there has been a shift to accommodating popular participation and good governance.

its benefits are increasingly viewed as unsustainable on intellectual. and. social. if it can be contended that a particular proclivity of human beings is natural and inevitable. while as deductive theory and approach neoliberalism may appear unchallengeable and highly persuasive.Luksika Parkjit 5545921329 made. such a proclivity must necessarily be pandered to as a normative ideal. Thus. and political grounds. philosophical. is necessarily the most appropriate or adequate assumption to guide formulation of social theories. .