Neoliberalism is one of the most dominant theories that shape most of the international policies throughout the world. This paper will evaluate the effectiveness of such policies in regards to world poverty. There are many conflicting viewpoints in regards to wether neoliberal policies has exacerbated or decreased poverty levels around the world, which will be outlined in this paper. Neoliberals maintain that Neoliberalism has been a vital factor in decreasing world poverty in countries that have adopted it completely and those that haven’t adopted these policies are suffering as a result. Conversely, the critical opponents of neoliberalism claim that their philosophy represents only the private interest of the corporate elite, resulting in the exploitation of the poor. Throughout this paper it will be found that world poverty can be addressed by pursuing neoliberal economic policies.
Almost half of the world’s population (45%) exists on less than a $2 a day (Stiglitz, 2002, p.25).
Economists agree that the best way to address and eradicate world poverty is through economic development, by ensuing growth of all sectors of society rather than a selected few. It has been proven that countries that benefited sustained growth have also been the most effective in reducing poverty within their nations.
Neoliberalism is the term associated to the market driven approach to economic and social policy based on the neoclassical theories of economics that stresses the efficiency of private enterprise, liberalized trade and relatively open markets, seeking to maximise the role of the private sector in determining the political and economic priorities of the state (Roy, Denzau, Willet, 2007, p.27). Neoliberalism seeks to transfer control of the economy from public to the private sector, under the belief that it will produce a more efficient government and improve the economic health of the nation (Cohen, 2007).
The Essay on Brave New World Society And Socio economic Class
ter> Discuss how the society in Brave New World works to ensure that people do not change their socio-economic class. Through Brave New World, Huxley depicts a new, industrialized world, which is financially stable and has prevented poverty and self-destruction. Dictatorial governments are there to ensure stability and maintain perfection of the world. Therefore, just like under any other ...
Although some believe that neoliberalism is merely an economic framework, it is in fact a philosophy that seeks to look at the world from a definitive perspective in regards to having a ‘free market’. The concrete policies advocating neoliberalism are those of John Williamsons ‘Washington Consensus’. Williamsons policy included ten important points in regards to; fiscal policy, which would see the eradication of large deficits that have to be paid back by citizens in hopes to stop huge amounts of debt, redirection of public spending from subsidies, tax reforms that will encourage innovation and efficiency, interest and exchange rates that are reasonable and efficient, trade liberalization on imports, liberalization of the capital account, privatization of state enterprises, abolition of regulations that impede market entry or restrict completion, legal security for property rights and financialisation of capital (Williamson, 2004). Williamson developed these policies firstly for the Latin-American countries in order to promote economic growth in hopes to eradicate poverty. Neoliberalists are adamant that in order to eradicate poverty, governments and countries need to be using these policies and believe that states cooperate to achieve absolute gains and the greatest obstacle to cooperation is ‘cheating’ or non compliance by other states (Baylis and Smith, 2008, p.133)
Neoliberalism and neoliberal movements have undoubtedly changed the world’s economies in many ways over the past 30 years. Neoliberalism has seen not only the growth of international trade and cross barrier capital flows but also the elimination of several trade barriers, cutbacks in public sector employment, the privatization of previously public-owned enterprises and the transfer of the share of countries economic wealth to the top economic percentiles of the population (Rapley, 2004).
The Essay on Systematic Poverty in the Worlds Twenty
Understanding sustainable development as the developments of the current generation Noting with deep concern limitations imposed by the ravages of civil war Pointing out that due to the numerous on-going civil wars, governments have lost track of sustaining sustainable lifestyles due to their priorities of supplying armaments. Regrettably noting that 1. 75 billion people are living in severe ...
Unfortunately for neoliberalists, most countries affected by poverty are mostly anti-business, and the aid that rich countries give them overwhelmingly supports government agencies and nongovernmental organisations (Hubbard and Duggan, 2009, p. xi).
A vast majority of the aid and money that is either donated or fundraised to tackle world poverty goes towards food, medicine, clothing and rebuilding vital infrastructures, and whilst this is a huge help to communities, it has failed to end world poverty as these donations and help are not permanent in regards to growing and sustaining successful villages in countries ravaged by poverty. Although this flow of aid is in place for all the right intentions, only business creates the jobs that pull people out of poverty, and neoliberalism is the only reliable path to mass prosperity the world has ever known (Hubbard and Duggan, 2009, p.3).
According to Hubbard and Duggan, in order to tackle world poverty, wealthy and developed countries need to begin to take advantage of their power and status by grasping neoliberalists approaches to poverty, such as the successful ‘Marshall Plan’ that took place in 1948 through to 1951, following the Second World War, which focused on funding Europe’s struggling businesses in order to sustain economic stability to pull them out of poverty (Hubbard & Duggan, 2009, p.xi).
Like many dominant theories, neoliberalism has many harsh criticisms in regards to its policies, especially in regard to eradicating world poverty. Outspoken critics such as Amartya Sen and Robert Pollin, linguist Noa Chomsky, geographer David Harvey and the anti-globalisation movement in general including ATTAC, all suggest that neoliberalism is a sneaky way for organisations to manipulate poverty stricken countries for their own selfish interests. Critics also argue that neoliberal economics promote exploitation, produce inequality, and increase corporate power. Some anti-corporate organizations believe neoliberalism, unlike liberalism, changes economic and government policies to increase the power of corporations and large business, and a shift to benefit the upper classes over the lower classes. Along with these criticisms, oppositionists believe neoliberalism does not promote equality between society, and urban citizens are increasingly deprived of the power to shape the basic conditions of daily life
The Term Paper on World Bank Imf Countries Web Unknown
"Debt repayments divert money away from basic life-saving health care in the world's poorest countries. The UN estimates that if funds were diverted back into health and education from debt repayment, the lives of seven million children a year could be saved. That is 134, 000 children a week." In today's global village one cannot ignore the other eighty percent of the world that lives in poverty. ...
(Peck & Ticknell, 2002, p.322).
Trade-led, unregulated economic activity and lax state regulation of pollution may lead to environmental impacts or degradation (Peet, 2003, p.188-211).
It is also claimed that deregulation of the labor market produces flexibilisation and casualisation of labor, greater informal employment, and a considerable increase in industrial accidents and occupational diseases (Feo, 2008,p.224).
Although at their most eloquent, neoliberalists strive to ensure that the poor people and the environment a tremendous service with their policies, linguist and philosopher, Chomsky feels the economic consequence of the policies have been a massive increase in social and economic inequality, a marked increase in severe deprivation for the poorest nations and peoples of the world, a disastrous global environment, an unstable global economy and an unprecedented bonanza for the wealthy (Chomsky, 1999).
Another argument against neoliberalism put forward by Professor David Harvey is that neoliberalism has become hegemonic worldwide, sometimes by coercion. Harvey believes neoliberalism has had the support of large debt restructuring organizations such as the World Bank and the International Monetary Fund (IMF), which were encouraged to promote neoliberalism in order to promote higher living standards in developing countries (Harvey, 2000, p.73).
The key argument put forward by all opponents to neoliberalism is the idea that the policies are in place only to protect the interests of multinational corporations, whilst exploiting the poor.
The Term Paper on Fiscal and Monetary Policy- the Response of Global Economic Crisis Especially in Eu
Fiscal and Monetary policy- The response of global economic crisis especially in EU Introduction Monetary and fiscal authorities across the globe have responded quickly and decisively to these extraordinary developments. In particular, against the background of rapidly receding inflationary pressures and risks, the Euro system has taken monetary policy and liquidity management measures that were ...
Although subject to harsh criticism, neoliberalism remains a dominant theory throughout the world that is continuously shaping our global communities. Throughout this paper it was found that although anti-neoliberalists find the practice and policies of neoliberalism to be fueled by multinational corporations conflicting self interests and extremely exploitative to the poor, neoliberalism plays a vital role in decreasing world poverty through sustaining economic stability. It has been proven that countries that benefited sustained growth have also been the most effective in reducing poverty within their nations, therefore, it can be seen that world poverty can be addressed by pursuing neoliberal economic policies.
Bibliography:
Baylis, J & Smith, S, 2008, The Globalisation of World Politics: An Introduction to International Relations, 4th Edition, Oxford University Press, USA.
Cohen, J, 2007, The Impact of Neoliberalism, Political Institutions and Financial Autonomy on Economic Development, Princeton University.
Harvey, D, 2000, Spaces of Hope: Volume 7 of California studies in critical human geography, University of California Press, California.
Hubbard, R & Duggan, W, 2009, The Aid Trap: Hard truths about ending poverty, Columbia Business School, New York.
Feo, O, 2008, Social Medicine: Neoliberal Policies and their impact on public health education:Observation on the Venezuelan Experience, Volume three, Issue 3.
Peck, J & Ticknell, A, 2002, Neoliberalizing Space, Volume 34, Issue 3.
Peet, R, 2003, Neoliberalism and Nature: The Case of the WTO, Annals of the American Academy of Political and Social Science, Volume 590.
Rapley, J, 2004, Globalization and inequality: neoliberalisms downward spiral, Lynne Rienner Publishers Inc, Colorado.
Ravi, R, Denzau, A & Willet, T, 2007, Neoliberalism: National and regional experiments with global ideas, Routledge, Oxon.
Stiglitz, J, 2002, Globalization and its discontents, Penguin, London.
Williamson, J, 2004, A Short History of the Washington Consensus, viewed 1st September 2011
