‘Neo liberalism is responsible for most of the global economic problems we are experiencing today’
‘Neo liberalism is responsible for most of the global economic problems we are experiencing today’ Brett nelson
Word count – 1511.
Neo-liberalism is a political ideology that suggests that ‘human well-being can be advanced by the maximisation of entrepreneurial freedom, characterised by private property rights, individual liberty, free markets and free trade’ (Geografiskar, A 2006). In today’s modern society neo-liberalism is widespread around the globe with various stakeholders offering conflicting views. Some advocates, namely the capitalistic portion of society argue that a liberal market is
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A representative from the World Bank stated “Reducing government regulation with tax rates and deregulation across most of the planet has not brought anything close to an end of poverty”, (World Bank 2001). Neoliberal advocates believe that wealth generated by reducing regulation and allowing private enterprises such as banks and financial institutions to hold more power will be passed down to all levels of society. However, this is not the case, an example is the United states, under Neoliberal governments child poverty rose by a third and in the “united kingdom between 1980 and 1990 when the government was run by neoliberal policies poverty rose by half”.( Navarro, Vicente. 1998). The high volume of capital movements caused by neoliberalism have led to much crisis, exposing developing countries to new risks. There are various reasons why neoliberal policies have failed to address the issues of poverty in society. One of these reasons being the stability policies neoliberalism has input into our governments, supported by tight fiscal and monetary controls which have provided neither growth nor stabilization within countries’ economies. (Geografiskar, A 2006). The liberalisation of foreign trade was put in place to remove the barriers of developing countries but maintenance of these barriers has given birth to an unfair international market.