Neo-Liberalism Flashcards
AO1
Marketplace freedom = regulate and manage itself = boosts economy
Praises free market economics - disruption restricts development
Encourages entrepeneurial spirits and rewarded with capital growth
underdevelopment = corruption (kleptocracy) and economic mismanagement
Money needs to go into infrastructure and get external investment
Reduction of tax needed
more wealthy people = more wealth
New Right Economic Theory
No interference = capitalism will progress development
Development occurs after freedom of capitalism
Adam Smith - laissez-faire economy with little to none government intervention
Friedman - developing world needs to come out of poverty on their own
Economic barrier = significant barrier
Development strategies
Blames communism and poverty stems from internal factors (expensive health care etc)
Intervention needed from world bank and IMF
Bauer and Friedman = government control is inefficient and expensive
Bauer - development would leave economy without growth and dependant on external support
Overseas development prop up corrupt regime
Financial support accompanied with conditions
Countries encouraged to sell resources and cash crops
Drives for privatisation of public services designed to lower tax burden
Evaluation - Pros
Responsibility resides with the nation and its governance
Redresses issues with mt
Individual Autonomy has non-economic benefits
Evaluation - Cons
Idealises the free market and its effects
Assume wealth will trickle down from elite to people
Misattribution - wrong for reasons of global development by missing origins of corruption are a legacy of colnialism
Ignores impact of colonisation
NP - too focused on economic development
Washington Consensus
Developing nations no option but to reject the forced Americanisation of their culture systems
Examples
South Korea - Export processing zones created and gave employment opportunities and cash
Bangladesh (Rosling) - trickled down wealth, employment oppotunities and economy 1st
Mexico - Cheap goods flooded N America and development centred
