5. Neoliberalism (Free Market Economy)

Question 1

What 2 ethnographies are associated with Neoliberalism?

Answer 1

1. Mole, N.J. (2010). ‘Precarious Subjects: Anticipating Neoliberalism in Northern Italy’s Workplace.’
2. Gregory, S. (2007). ‘Chapter 1: The Politics of Livelihood,’ pp.11-49 in The Devil Behind the Mirror: Globalization and Politics in the Dominican Republic.

Question 2

What does Mole’s (2010) ethnography say about Neoliberalism?

Answer 2

• Precarious-ization
• Implementation of neoliberal policies to create ‘ semipermanent’ and insecure labour force.

Question 3

What does Gregory’s (2007) ethnography say about Neoliberalism?

Answer 3

• Informal economies
• Formalised organisation e.g. unions and regulate the marketplace
• Racial segregation of the economy
• Privatisation of electricity - power over people being supplied - discipline
• Sex tourism - tour guides
• Police/sex trade
• Segregation
• Private Property
• Resistence Documentation
• Informal/formal blur

Question 4

What is Neoliberalism?

Answer 4

• Doctrine for the free market economy
• Political and economic approach
• At the economic level:
  
  • Policies based on free market
  • Privatisation of Public Services
  • Liberalism of trade (free trade)
  • Minimal Taxation

Question 5

What is a brief history of Neoliberalism according to David Harvey?

Answer 5

• 1700s - Adam Smith (Classical Economist): The Invisible Hand - The Markets are best left to themselves. Self-regulating. = Liberalism - primarily focussed on the economy.
• Post WW2 - Bretton Woods Agreement - Approach to rebuilding after WW2. Establised the IMF and the World Bank (nee Bank of Reconstruction & Development). This establishes:
  
  • Neoliberalism (roots in Liberalism but extends to the policitcal and the social and brings in laws and public policies, protection of property).
• 1970s - The Oil Crisis causes economic downturn as a result of increasing oil costs. This establishes:
  
  • Postfordism (offshoring, outsourcing, global assembly line).
  • In 1975 in New York the Emergency Budget Control Board was established and enables a takeover from the State to have fiscal control.
  • In 1973 in Chile there was a miltary coup against Salvador Allende. Pinochet implemented US economic policies but this caused massive inflation and resulted in huge disparacy between the rich and poor.
• 1980s - Thatcher and Regan. Follow neoliberal doctrine.
  
  • Privatisation, deregulation of markets, disciplining of unions, outsourcing/offshoring, flexible/informal working, recofiguring of urban space e.g. financial zone such as Canary Wharf.
  • Structural Adjustment Programs brought in - conditional loans aimed at altering the financial condition of a country.
  • 1989 - Washington Consensus - Agreement on the future of economic development. -
• Contemporary - Enterprise & Entrepreneurialism: The New Ethic.

Question 6

How is Neoliberalism set up globally?

Answer 6

• Interplays with a variety of other factors e.g. local cultural practice, policitcal structures etc.
• Special Economic Zones (SEZs) e.g. Andhra Pradesh - Book: Dream Zones by Jamie Cross (2014).
• Flexibility at Work - lower costs, efficiencies, innovation, retrain, redeploy.

Question 7

How is a labour force informalised?

Answer 7

• The ‘informal economy’ e.g. street trading or barter markets

1. Lumpen Proletariat (Marxist term) - available labour
2. A realm of resistance
3. Crucible of entrepreneurial spirit (akin to neoliberalism ideology)
   
   • Not taxed or regulated
   • Outsourcing to homeworks
   • Undeclared, off the books income

Question 8

What are the 3 levels of Neoliberalism?

Answer 8

1. Neoliberal Doctrine/Philosophy - “Free market economies are the best” and “the state must get out of the way and allow bsinesses to meet the needs of the population = economic growth”
2. Neoliberal policies - privatisation, deregulation, free trade!
3. Effects or experiences of these policies on:

• Individuals
• Families and communities
• Business
• Governments
• Universities
• Our democracies…

Question 9

Why does Neoliberalism matter?

Answer 9

• Embraced worldwide
• Shapes our economies
• Answer to global poverty “embracing your inner capatalist”
• Informalisation of employment
• Turning to the informal sector to survive
• Markets, firms and workers compelled to become more ‘flexible’