Class notes 2 - Jan 17th Tuesday Neoliberalism Sustainable...

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Jan 17 th Tuesday Neoliberalism, Sustainable Development, Human Development and Post-Development Dependency may have grown even greater today: - Many poor countries owe large debts to developed countries/international banks (oil prices + economic crisis); conditional loans - World is globalized with many developed country TNCs operating in and possibly exploiting developing countries - Developed countries tend to specialize in more value added industries like banking and manufacturing, widening the development gap - Many international organizations are dominated by developed countries (e.g. G20, World Bank, IMF, UN Security Council;) [impose policies] - Many developing countries have now become reliant on NGO help and on foreign aid Economic crisis: looking at internal problems instead of the market When they decide to fix the state: privatization (1980s) Neoliberalism: Reagan and Thatcher era: saw neoliberalism pushed to most parts of the globe Neoliberalism: making trade between nations easier; freer movements of goods, resources, and enterprises in a bid to always find cheaper resources, to maximize profits To help accomplish this, neoliberalism requires the removal of various controls deemed as barriers to free trade (tariffs, market regulations, restrictions on capital flows and investments, certain standards, laws and regulatory measures) The main points of neoliberalism: - Rule of the market: freedom for capital, goods and services; trickle down notion of wealth distribution (more income – more money on other things beneficial for human development) - De-unionizing of labor forces and removals of any impediments to capital mobility (regulations); - Deregulation of market: allow market forces to act as self- regulating mechanism; - Freedom from the state/government: state is corrupt/bad policies; reducing public expenditure for social services, such as health and education (the money given to the poor can be invested in market) - Privatization of public enterprises - Changing perceptions of public and community good to individualism; focus on individual consumers; consumers should have free choices; Criticism: Neoliberal Structural Adjustment Programs (SAPs) devastated
many African economies (and the austerity measures are now coming back to developed countries) SAPs basically involves the World Bank or IMF agreeing a conditional loan for a developing country (e.g. downsizing of the government, deregulation of markets and privatization) Those countries that have adopted free market policies have developed more slowly compared to those that protected their economies (e.g. Nordic countries and Asian Tigers) Sustainable Development Neoliberal policies were challenged mainly by the proponents of sustainable development and human development in the 1990s.

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