Immigration to the mainland capitals by refugees have seen capital flows follow soon after, such as from war-torn Lebanon and Vietnam. Later economic-migrants from mainland China also, up to recent restrictions, had invested significantly in the property markets. Australia was one of few developed countries not to go through a recession during the financial crisis ; in fact, Australia has not had a recession since , a length of time no other rich country has ever managed to maintain growth for.
These neoliberal policies are commonly referred to as Rogernomics , a portmanteau of "Roger" and "economics", after Lange appointed Roger Douglas minister of finance in Lange's government had inherited a severe balance of payments crisis as a result of the deficits from the previously implemented two-year freeze on wages and prices by preceding Prime Minister Robert Muldoon , who had also maintained an exchange rate many economists now believe was unsustainable. A reform program consisting of deregulation and the removal of tariffs and subsidies was put in place.
This had an immediate effect on New Zealand's agricultural community , who were hit hard by the loss of subsidies to farmers. The financial markets were also deregulated, removing restrictions on interests rates , lending and foreign exchange. In March , the New Zealand dollar was floated.
New Zealand became a part of the global economy. The focus in the economy shifted from the productive sector to finance as a result of zero restrictions on overseas money coming into the country. Finance capital outstripped industrial capital and the manufacturing industry suffered approximately 76, job losses. The Middle East has experienced an onset of neoliberal policies beginning in the late s.
In Tunisia, neoliberal economic policies are associated with former president and de facto dictator  Zine El Abidine Ben Ali ;  his reign made it clear that economic neoliberalism can coexist and even be ecouraged by authoritarian states. The adoption of neoliberal policies in the s by international institutions such as the International Monetary Fund IMF and the World Bank had a significant impact on the spread of neoliberal reform worldwide.
The European Union EU is sometimes considered a neoliberal organization, as it facilitates free trade and freedom of movement , erodes national protectionism and limits national subsidies. The Austrian School is a school of economic thought which bases its study of economic phenomena on the interpretation and analysis of the purposeful actions of individuals. Among the contributions of the Austrian School to economic theory are the subjective theory of value , marginalism in price theory and the formulation of the economic calculation problem.
The Austrian School follows an approach, termed methodological individualism , a version of which was codified by Ludwig von Mises and termed " praxeology " in his book published in English as Human Action in The former Federal Reserve Chairman Alan Greenspan , speaking of the originators of the School, said in that "the Austrian School have reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in this country".
Buchanan told an interviewer: "I have no objections to being called an Austrian. Hayek and Mises might consider me an Austrian but, surely some of the others would not". The Chicago school of economics describes a neoclassical school of thought within the academic community of economists, with a strong focus around the faculty of the University of Chicago. Chicago macroeconomic theory rejected Keynesianism in favor of monetarism until the mids, when it turned to new classical macroeconomics heavily based on the concept of rational expectations. The school emphasizes non-intervention from government and generally rejects regulation in markets as inefficient, with the exception of central bank regulation of the money supply i.
Although the school's association with neoliberalism is sometimes resisted by its proponents,  its emphasis on reduced government intervention in the economy and a laissez-faire ideology have brought about an affiliation between the Chicago school and neoliberal economics. Neoliberal policies center on economic liberalization , principally deregulation of industry, privatization of state-owned enterprises, reductions to trade barriers and government spending , and monetarism.
Neoliberalism advances the view that economic freedom and political freedom are inextricably linked. Milton Friedman argued in his book Capitalism and Freedom that economic freedom , while itself an extremely important component of absolute freedom , is a necessary condition for political freedom. He claimed that centralized control of economic activities is always accompanied by political repression. In his view, the voluntary character of all transactions in an unregulated market economy and wide diversity that it permits are fundamental threats to repressive political leaders that greatly diminish the power to coerce.
Through the elimination of centralized control of economic activities, economic power is separated from political power and each can serve as a counterbalance to the other. Friedman feels that competitive capitalism is especially important to minority groups since impersonal market forces protect people from discrimination in their economic activities for reasons unrelated to their productivity.
Freedom after Neoliberalism
In a response to critics he claims accuse him of endorsing "the neoliberalization of academic life," Stanley Fish argues that academics should not engage in civic or democratic action in their role as academics. Fish claims academic freedom applies only within the university and the classroom, which are not the appropriate venues for taking stands on social or political issues.
Monetarism is an economic theory commonly associated with neoliberalism. Monetarism is often associated with the policies of the US Federal Reserve under the Chairmanship of economist Paul Volcker ,  which centered around high interest rates that are widely credited with ending the high levels of inflation seen in the United States during the s and early s  as well as contributing to the — recession. The Washington Consensus is a set of standardized policy prescriptions developed by the International Monetary Fund IMF , the World Bank , and the US Department of Treasury for crisis-wracked developing countries, and is often associated with neoliberalism.
Neoliberalism has its share of criticism in both left-wing politics and right-wing politics ,  with activists and academics alike criticizing it. Thomas Marois and Lucia Pradella posit that the impact of the global — crisis has given rise to a surge in new scholarship that criticizes neoliberalism and seeks policy alternatives.
Neoliberal thought has been criticized for its faith in the efficiency of markets, in the superiority of markets over government intervention, in the ability of markets to self-correct, and in the market's ability to deliver economic and political freedom. Some critics contend neoliberal thinking prioritizes economic indicators like GDP growth and inflation over social factors that might not be easy to quantify, like labor rights  and access to higher education. However, he argues that the neoliberal worldview singled out transit drivers and their labor unions , blaming drivers for failing to meet impossible transit schedules and considering additional costs to drivers as lost funds that reduce system speed and performance.
This produced vicious attacks on the drivers' union and brutal public smear campaigns , ultimately resulting in the passing of Proposition G, which severely undermined the powers of the Muni drivers' union. Other critics contend that the neoliberal vision de-emphasizes public goods. American scholar and cultural critic Henry Giroux alleges that neoliberal market fundamentalism fosters a belief that market forces should organize every facet of society, including economic and social life, and promotes a social Darwinist ethic that elevates self-interest over social needs.
While proponents of economic liberalization have often pointed out that increasing economic freedom tends to raise expectations on political freedom , [ citation needed ] some scholars see the existence of non- democratic yet market-liberal regimes and the seeming undermining of democratic control by market processes as evidence that this characterization is ahistorical. Despite the focus on economic efficiency, some critics allege neoliberal policies actually produce economic inefficiencies. For instance, the replacement of a government-owned monopoly with privately owned companies might reduce the efficiencies associated with economies of scale.
Critics argue that neoliberal policies have increased economic inequality  : 7  and exacerbated global poverty. A report by researchers at the International Monetary Fund IMF was critical of neoliberal policies for increasing economic inequality. The report contends that the implementation of neoliberal policies by economic and political elites has led to "three disquieting conclusions":. A number of scholars see increasing inequality arising out of neoliberal policies as a deliberate effort, rather than a consequence of ulterior motives like increasing economic growth.
Marxist economic geographer David Harvey describes neoliberalism as a " class project" "carried out by the corporate capitalist class", and argued in his book A Brief History of Neoliberalism that neoliberalism is designed to increase the class power of economic elites. Kotz contends that neoliberalism "is based on the thorough domination of labor by capital ". Globally, it meant opening a state's political economy to products and financial flows from the core countries. Domestically, neoliberalism meant remaking of social relations "in favour of creditor and rentier interests, with the subordination of the productive sector to financial sectors, and a drive to shift wealth, power and security away from the bulk of the working population.
The implementation of neoliberal policies and the acceptance of neoliberal economic theories in the s are seen by some academics as the root of financialization , with the financial crisis of — as one of its results. While the profitability of industry and the rate of economic growth never recovered to the heyday of the s, the political and economic power of Wall Street and finance capital vastly increased due to debt-financing by the state.
Several scholars have linked mass incarceration of the poor in the United States with the rise of neoliberalism. In expanding upon Wacquant's thesis, sociologist and political economist John L. Campbell of Dartmouth College suggests that through privatization the prison system exemplifies the centaur state. He states that "on the one hand, it punishes the lower class, which populates the prisons; on the other hand, it profits the upper class, which owns the prisons, and it employs the middle class, which runs them.
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Both through privatization and outsourcing, Campbell argues, the penal state reflects neoliberalism. David McNally , Professor of Political Science at York University , argues that while expenditures on social welfare programs have been cut, expenditures on prison construction have increased significantly during the neoliberal era, with California having "the largest prison-building program in the history of the world". McChesney  : Some organizations and economists believe neoliberalism promotes economic and political policies that increase the power of corporations and shift benefits to the upper classes.
The International Monetary Fund IMF and World Bank , two major international organizations which often espouse neoliberal views,  have been criticized for advancing neoliberal policies around the world. Mark Arthur, a Senior Fellow at the Center for Global Development Research in Denmark, has written that the influence of neoliberalism has given rise to an " anti-corporatist " movement in opposition to it.
This "anti-corporatist" movement is articulated around the need to reclaim the power that corporations and global institutions have stripped governments of. He says that Adam Smith 's "rules for mindful markets" served as a basis for the anti-corporate movement, "following government's failure to restrain corporations from hurting or disturbing the happiness of the neighbor [Smith]". Neoliberalism is commonly viewed by scholars as encouraging of globalization ,  which is the subject of much criticism.
The emergence of the " precariat ", a new class facing acute socio-economic insecurity and alienation, has been attributed to the globalization of neoliberalism. Globalization can subvert nations' ability for self-determination. A number of scholars have alleged neoliberalism encourages or covers for imperialism. Historian Bradley R. Simpson posits that this campaign of mass killings was "an essential building block of the neoliberal policies that the West would attempt to impose on Indonesia after Sukarno's ouster.
Geographer David Harvey argues neoliberalism encourages an indirect form of imperialism that focuses on the extraction of resources from developing countries via financial mechanisms. He alleges that these institutions prioritize the financial institutions that grant the loans over the debtor countries and place requirements on loans that, in effect, act as financial flows from debtor countries to developed countries for example, to receive a loan a state must have sufficient foreign exchange reserves—requiring the debtor state to buy US Treasury bonds, which have interest rates lower than those on the loan.
Economist Joseph Stiglitz has said of this: "What a peculiar world in which poor countries are in effect subsidizing the richest. The neoliberal approach to global health advocates privatization of the healthcare industry and reduced government interference in the market, and focuses on non-governmental organizations NGOs and international organizations like the International Monetary Fund IMF and the World Bank rather than government.
Rick Rowden, a Senior Economist at Global Financial Integrity, has criticised the IMF's monetarist approach of prioritising price stability and fiscal restraint, which he alleges was unnecessarily restrictive and prevented developing countries from scaling up long-term investment in public health infrastructure. Some academics and commentators have blamed neoliberalism and hyper-capitalism for exacerbating and normalizing the social ills and violence of contemporary society,   including the increase in mass shootings ,   particularly in the United States.
Nicolas Firzli has argued that the rise of neoliberalism eroded the post-war consensus and Eisenhower-era Republican centrism that had resulted in the massive allocation of public capital to large-scale infrastructure projects throughout the s, s and s in both Western Europe and North America : "In the pre-Reagan era, infrastructure was an apolitical, positively connoted, technocratic term shared by mainstream economists and policy makers […] including President Eisenhower, a praetorian Republican leader who had championed investment in the Interstate Highway System, America's national road grid […] But Reagan, Thatcher, Delors and their many admirers amongst Clintonian, " New Labour " and EU Social-Democrat decision makers in Brussels sought to dismantle the generous state subsidies for social infrastructure and public transportation across the United States, Britain and the European Union".
Following Brexit , the United States presidential election and the progressive emergence of a new kind of "self-seeking capitalism" " Trumponomics " moving away to some extent from the neoliberal orthodoxies of the past, there is speculation that the United States, Britain, and other advanced economies may see increases in infrastructure investment:  .
With the victory of Donald J. Trump on November 8, , the 'neoliberal-neoconservative' policy consensus that had crystallized in — Deng Xiaoping's visit to the United States, election of Reagan and Thatcher finally came to an end [ Donald Trump was quick to seize on the issue to make a broader slap against the laissez-faire complacency of the federal government.
Others, such as Catherine Rottenberg, do not see Trump's victory as an end to neoliberalism, but rather a new phase of it. It has been argued that trade-led, unregulated economic activity and lax state regulation of pollution have led to environmental degradation. Marxist economic geographer David Harvey argues neoliberalism is to blame for increased rates of extinction. The Friedman doctrine , which Nicolas Firzli has argued defined the neoliberal era,  may lead companies to neglect concerns for the environment.
From Wikipedia, the free encyclopedia. Political philosophy that supports economic liberalization. For the school of international relations, see Neoliberalism international relations. Industrial Revolution Mercantilism. Comparative advantage Economic growth Gross domestic product International economics International finance International trade Laffer curve.
Related topics. Anti-capitalism Anti-copyright Anti-globalization Alter-globalization Criticism of capitalism Criticism of intellectual property Perspectives on capitalism Protectionism. Economic systems. Economic theories. Anti-capitalism Capitalist state Consumerism Crisis theory Criticism of capitalism Cronyism Culture of capitalism Exploitation Globalization History History of theory Market economy Periodizations of capitalism Perspectives on capitalism Post-capitalism Speculation Spontaneous order Venture philanthropy.
Anarcho-capitalism Authoritarian capitalism Democratic capitalism Dirigism Eco-capitalism Humanistic capitalism Inclusive capitalism Liberal capitalism Liberalism Libertarian capitalism Neo-capitalism Neoliberalism Objectivism Ordoliberalism Right-libertarianism Social democracy. At a base level we can say that when we make reference to 'neoliberalism', we are generally referring to the new political, economic and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility. Most scholars tend to agree that neoliberalism is broadly defined as the extension of competitive markets into all areas of life, including the economy, politics and society.
Neoliberalism is essentially an intentionally imprecise stand-in term for free market economics, for economic sciences in general, for conservatism, for libertarians and anarchists, for authoritarianism and militarism, for advocates of the practice of commodification, for center-left or market-oriented progressivism, for globalism and welfare state social democracies, for being in favor of or against increased immigration, for favoring trade and globalization or opposing the same, or for really any set of political beliefs that happen to be disliked by the person s using the term.
Water and Development
Further information: Crisis of and Miracle of Chile. Related movements. See also: Reaganomics and Reagan Era. See also: Chinese economic reform. See also: Rogernomics. See also: Structural adjustment. See also: History of the European Union. Principal works. Austrian business cycle Catallactics Creative destruction Economic calculation problem View of inflation Malinvestment Marginalism Methodological individualism Praxeology Roundaboutness Spontaneous order Subjective theory of value Theory of interest. Austrian School economists Economic freedom Perspectives on capitalism. Libertarianism Neoliberalism Positive non-interventionism.
Consequentialist libertarianism Monetarism Neoclassical economics. George Stigler. Central banks Denationalization Deregulation Economic freedom Economic integration , interdependence Economic liberalization Exchange rate Fiat currency Foreign exchange reserves Free markets Free trade Globalization Inflation adjustment Inflation targeting Intellectual property Laissez-faire Marketization Negative income tax Open market operations Private property Privatization School vouchers Single market Tax cuts Tax reform.
Alter-globalization Anti-capitalism Anti-globalization Perspectives on capitalism. Main article: Monetarism. Main article: Washington Consensus. Main article: Market fundamentalism. See also: List of countries by income equality and Income inequality in the United States. The invisible hand of the market and the iron fist of the state combine and complement each other to make the lower classes accept desocialized wage labor and the social instability it brings in its wake. After a long eclipse, the prison thus returns to the frontline of institutions entrusted with maintaining the social order.
Main article: Corporatocracy. Instead of citizens, it produces consumers. Instead of communities, it produces shopping malls. The net result is an atomized society of disengaged individuals who feel demoralized and socially powerless. See also: Criticisms of globalization. This section needs expansion.
You can help by adding to it. June July Liberalism portal. Modern Political Ideologies. Hoboken, New Jersey: Wiley-Blackwell. London: Routledge. Retrieved March 30, Globalization and Free Trade. Infobase Publishing. The Handbook of Neoliberalism. Boas, Jordan Gans-Morse June Studies in Comparative International Development. For Business Ethics. The 'neo' part of neoliberalism indicates that there is something new about it, suggesting that it is an updated version of older ideas about 'liberal economics' which has long argued that markets should be free from intervention by the state.
In its simplest version, it reads: markets good, government bad. Capital Resurgent: Roots of the Neoliberal Revolution. Harvard University Press. People do not call themselves neoliberal; instead, they tag their enemies with the term. World Health Organization. Foreign Policy in Focus. Retrieved 25 March Oxford English Dictionary 3rd ed. Oxford University Press.
September Subscription or UK public library membership required. Neoliberalism has rapidly become an academic catchphrase. From only a handful of mentions in the s, use of the term has exploded during the past two decades, appearing in nearly 1, academic articles annually between and Neoliberalism is now a predominant concept in scholarly writing on development and political economy, far outpacing related terms such as monetarism, neoconservatism, the Washington Consensus, and even market reform.
Neoliberalism is easily one of the most powerful concepts to emerge within the social sciences in the last two decades, and the number of scholars who write about this dynamic and unfolding process of socio-spatial transformation is astonishing. A Dictionary of Human Geography. Princeton University Press. Friedman and Hayek are identified as the original thinkers and Thatcher and Reagan as the archetypal politicians of Western neoliberalism.
Neoliberalism here has a pejorative connotation. Foreign Policy. Retrieved Neoliberalism is a slippery concept, meaning different things to different people. Scholars have examined the relationships between neoliberalism and a vast array of conceptual categories. Neoliberalism shares many attributes with "essentially contested" concepts such as democracy, whose multidimensional nature, strong normative connotations, and openness to modification over time tend to generate substantial debate over their meaning and proper application.
In recent decades, neoliberalism has become an important area of study across the humanities and social sciences. The Economic Journal. Retrieved April 23, American Institute for Economic Research. Retrieved 6 July Harper Perennial. Profit over People: Neoliberalism and Global Order. Seven Stories Press , Punctum Books, , 3. The Utopian. Retrieved 26 March Windmill Books. People commonly think of neoliberalism as an ideology that promotes totally free markets, where the state retreats from the scene and abandons all interventionist policies.
But if we step back a bit, it becomes clear that the extention of neoliberalism has entailed powerful new forms of state intervention. The creation of a global 'free market' required not only violent coups and dictatorships backed by Western governments, but also the invention of a totalizing global bureaucracy — the World Bank, the IMF, the WTO and bilateral free-trade agreements — with reams of new laws, backed up by the military power of the United States.
This Changes Everything: Capitalism vs the Climate. The Guardian. Retrieved August 22, Gold dates culled from historical sources, principally Eichengreen, Barry New York: Oxford University Press. Penn State Department of Geography. The Historical Journal. The New Republic. Retrieved 14 August The Mont Pelerin Society. Retrieved 16 July The Economist.
Retrieved 25 July Retrieved 8 July A Brief History of Neoliberalism. Allende's downfall had implications that reached far beyond the borders of Chile. His had been the first democratically elected Marxist government in Latin America BBC News. Memoria Chilena. Augusto Pinochet, who overthrew Chile's democratically elected Communist government in a coup October , 3—7.
Social Text , 31 2 : 1— New York: Basic Books. A Sheridan. Harmondsworth: Penguin. Senellart, M Ed. G Burchell. Basingstoke: Palgrave. New York: Melville House Press. Abingdon: Routledge. Contemporary Review , April: — Caldwell, B Ed. University of Chicago Press. Textual Practice , 29 2 : — London: Penguin. American Literary History , 29 3 : — New York: HarperCollins. A Derieg. Boston: Little, Brown. Los Angeles: Semiotext e. Guardian , 18 August. New York: Columbia University Press.
Reason Papers , 6: 37— London: Bloomsbury. Journal of Human Development and Capabilities , 17 1 : 5— Boston: Beacon Press. Cambridge: Cambridge University Press. Economy and Society , 46 3—4 : — Sen, A Development as Freedom. Essays on a Failing System. Thatcher, M Interview with Ronald Butt. Sunday Times , 3 May. Dissent , Summer. Chicago: University of Chicago Press.
Zamora, D and Behrent, M Eds. Cambridge: Polity Press. Beaumont, A. Freedom after Neoliberalism. Open Library of Humanities , 4 2 , p. Beaumont A, Kelly A. Open Library of Humanities. Open Library of Humanities , 4 2 , Beaumont, Alexander, and Adam Kelly. Open Library of Humanities 4 2 : Open Library of Humanities 4, no. Open Library of Humanities , vol. Start Submission Become a Reviewer. Reading: Freedom after Neoliberalism. Special Collection: Freedom After Neoliberalism. Abstract Over the last four decades, the rise of the socio-political formation widely referred to as neoliberalism has seen a particular model of freedom — the freedom of free markets, property rights, and entrepreneurial self-ownership — gain prominence in a variety of ways around the globe.
He is the founding chair of the Development Studies Association of Ireland and has written widely on development issues from a Southern and social movement perspective with an output of more than twenty books and over one hundred academic journal articles. His key areas of research include safe rural water, hygiene and sanitation. Alongside research, he has worked in a consultancy capacity in the areas of rural water and sanitation. She has previously lectured in sociology departments in Northern Ireland, South Africa and the UK, and currently has research capacity-building relationships with universities in Uganda, Mozambique, Tanzania, Malawi and South Africa.
Her research interests focus on human security, gender and development, and governance. She has published over twenty-six journal articles and book chapters and three books, including the prize-winning Globalisation and Security: An Encyclopaedia. Her recent publications have focused on gender in relation to e-learning, access and utilization of information communication technology, water, climate change, land rights, and conflict transformation.
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