GRSJ224/neoliberalism
Neoliberalism is an ideological position that seeks to minimize the role of government in the regulation of markets. It emphasizes free trade, deregulation and privatization, as well as austerity and the expansion of the private market in service delivery roles. Neoliberalism has become a dominant economic philosophy throughout the world, and dictates the policy directions of influential institutions such as the International Monetary Fund and the World Bank.
History
The term Neoliberalism was coined in 1938 by two Austrian economists, Friedrich Hayek and Ludwig von Mises[1]. Both had been exiled from their homeland and were wary of the path of social democracy, which they saw as leading to totalitarianism and the crushing of individual liberty, as under communism and nazism[2]. Their aim was to encourage the return to a form of laissez-faire economics and free-market capitalism characteristic of the early 1800s[3], at the time of the rise of industrial manufacturing.
The foundations for neoliberalism were laid by classical economists such as Adam Smith and David Ricardo. Smith created the idea of homo economicus, the idea that "people are isolated individuals whose actions reflect mostly their material self-interests." [4] Ricardo's contribution was the theory of comparative advantage, the idea that free trade among countries encouraged each to seek to specialize in a particular form of production which they could undertake more competitively than other countries. By focusing on what they could produce most cost-effectively, and trading for what they could not, the price of commodities would be driven down through competition.[5]
Impact
Neoliberalism, in both its practical implications and ideological position, individualizes problems and discourages collectivity. It emphasizes heavily self-reliance and self-regulation, and defers to the market in questions of viability or legitimacy. Its emphasis on individualism has impacted the ability of the welfare state to provide for individuals, and has slowed the progress of measures intended to reduce inequality and provide economic support to the poor and working classes.[6] Other policy outcomes include the shift in how national subjects are viewed, shifting the characterization of citizens and reconstructing them as customers or consumers of government services.[7]
One of the key characteristics of neoliberal policy is its focus on reform.[8] The largest impacts of this orientation can be seen in the fiscal policies imposed upon the global south through the IMF and the World Bank, particularly in Africa and Latin America.[9][10] The provision of funds for emergency disaster relief and international development projects come with policy prescriptions attached, which must be adhered to as part of agreements signed in the receipt of aid. Most often, this means austerity, the retrenchment of the welfare state, and the creation of favourable conditions for large business interests to take over natural resource development, health care, education and in some cases even the role of governance.[11]
Neoliberal Social Policy
Neoliberal economic policy states that the best outcomes are achieved by a non-interventionist position and free competition, which through the mechanisms of supply and demand will produce the most equitable outcomes. This has also been expanded into the social world, in the belief in equality of opportunity and an aversion to policies that seek to control individual outcomes.[12] The impacts of neoliberal reforms to social policy can be seen in healthcare, housing, education, social services and the individual outcomes of those affected by these reforms.
While neoliberalism shares some tendencies with conservatism, it has no inherent social positions per se. Although neoliberal policy tends to favour normative positions on social issues, it does not do so out of a sense of history or preservation in the same way that conservatism does.[13] Neoliberalism as a social force tends to favour business interests, private enterprise and entrepreneurialism, which results in a profit-at-all-costs orientation to social concerns. This results in a type of development that does not explicitly seek to disenfranchise or marginalize particular groups, but does not take into consideration the externalities of economic action on the social world.[14]
- ↑ "Neoliberalism: the ideology at the root of all our problems".
- ↑ "Neoliberalism - the ideology at the root of all our problems".
- ↑ "What is Neoliberalism?" (PDF).
- ↑ Steger, Manfred B. (2010). Neoliberalism: A Very Brief Introduction. New York: Oxford University Press. pp. 2–3. ISBN 978-0-19-956051-6.
- ↑ Steger, Manfred B. (2010). Neoliberalism: A Very Brief Introduction. New York: Oxford University Press. p. 3. ISBN 978-0-19-956051-6.
- ↑ Cummins, Ian (2018). Poverty, Inequality and Social Work: The Impact of Neo-Liberalism and Austerity Politics on Welfare Provision. Bristol, UK: Policy Press. ISBN 978 1 4473 3482 8.
- ↑ Morrison, Andrew (October 12, 2016). "The Responsibilized Consumer: Neoliberalism and English Higher Education Policy". Cultural Studies ↔ Critical Methodologies. 17, 3: 197–204 – via Sage Journals.
- ↑ Ganti, Tejaswini (June 24, 2014). "Neoliberalism". Annual Review of Anthropology. 43: 89–104.
- ↑ Rowden, Rick (2009). The deadly ideas of neoliberalism : how the IMF has undermined public health and the fight against AIDS. London; New York: Zed Books. ISBN 9781848132856.
- ↑ Mueller, Julie L. (July 11, 2011). "The IMF, Neoliberalism and Hegemony". Global Society. 25:3: 377–402.
- ↑ Ganti, Tejaswini (June 24, 2014). "Neoliberalism". Annual Review of Anthropology. 43: 89–104.
- ↑ Baker, Sally (2012). Responsible citizens : individuals, health, and policy under neoliberalism. Bangor University, Wales: Anthem Press. pp. 9–26. ISBN 1-78308-045-0.
- ↑ Nakano, Takeshi (2015). Beyond Global Capitalism. Tokyo: Springer. pp. 67–75. ISBN 978-4-431-55180-5.
- ↑ Navarro, Vicente (2007). Neoliberalism, globalization, and inequalities : consequences for health and quality of life. Amityville, N.Y.: Baywood Publishing. ISBN 9780895033383.