NEOCLASSICAL COUNTERREVOLUTION (1980s)

This counter revolution favored supply-side macro economics and privatization of state-owned corporations in
developed countries, and it stressed upon dethronement of public-ownership and government regulations in
developing countries. 
 denationalization under the disguise of privatization 
 
Dependencia Models of International Poverty are of the opinion that the poverty of developing countries can be
attributed to exploitation of the poor countries by the rich countries
 But the proponents of neoclassical counter-revolution theory are of the view that under-development results
from: 
o poor resource allocation due to incorrect pricing policies 
o too much state intervention on the part of developing countries in their economic activities
 
Therefore, the non-interventionist or neo-conservatives emphasize that if free markets are allowed to flourish, public
enterprises are privatized, free trade is promoted consequent upon export expansion, foreign investors are welcomed,
and a plethora of government regulations are eliminated, and the price distortions in goods, labor and financial
markets are removed, such all will stimulate economic efficiency and economic growth. 
 
The government of poor countries should allow the "magic of the marketplace" and invisible hand to guide resource
allocation and promote economic development. 
The neoclassical economists (counter-revolutionists) give the examples of Asian Tigers (South Korea, Taiwan, Hong
Kong and Singapore etc.) who marvelously stimulated their economics on the basis of "free markets and price
mechanism", whereas the economies of Africa and Latin America worst failed even they depended upon
“'interventionist policies”.