2.13 Neoliberalism I: Structural Adjustment and the violence of development

Question 1

Deregulation-Liberalization-Privatization;

Answer 1

Deregulation - reduce restrictions on
free flow of goods, money, finance
*Liberalization - open markets,
reduce trade barriers
* Privatization- privatize national
industries

Question 2

Fiscal Austerity

Answer 2

government policy focused on reducing budget deficits by cutting public spending and/or increasing tax revenue

Question 3

Structural Adjustment Programs

Answer 3

a set of economic reforms that a country must adhere to in order to secure a loan from the IMF and/or the World Bank. often a set of economic policies, including reducing government spending, opening to free trade, and so on

Question 4

The Washington Consensus

Question 5

the Golden Straitjacket

Question 6

Define neoliberalism

Answer 6

a market-driven approach to economic
and social policy that stresses the
efficiency of private enterprise,
liberalized trade and open
markets. seeks to
maximize the role of the private sector
in determining the political and
economic priorities of the state

Question 7

Describe and evaluate the ideas of Milton Friedman.

Answer 7

argued that free trade, lower taxes on income and capital, and a reduction in the burden of regulation would increase economic growth and improve social well-being. limited government intervention, personal freedom, free market capitalism

Question 8

Understand different perspectives on Neoliberalism’s “failure vs success.”

Answer 8

More people can be in poverty but it is seen as a success if the nations wealth overall improves

Question 9

describe the contemporary legacies of Neoliberalism and how they intersect with and cause race, gender and other forms of inequality.

Answer 9

Neoliberalism fails at its intention to reduce poverty. However, the main beneficiaries, international corporations, continue to benefit.

Question 10

myth of the self-regulating market

Answer 10

The myth of the self regulating market makes us believes that the market functions without political choices.

Question 11

Monetary Austerity

Answer 11

a central bank’s efforts to control inflation by raising interest rates and restricting the money supply in the economy (makes it more expensive to borrow money and encourages people to save in the aim to keep prices stable and prevent excessive borrowing and spending.)

Question 12

what are the effects of SAPS

Answer 12

can help stabilise economies and promote long-term growth, but can also lead to increased poverty, reduced and economic dependency on foreign institutions