Neoliberalism, Global Economy Flashcards
Economy
The state of a country/ region in terms of production & consumption of goods & services & the supply of money.
Global economy
Economies of the world’s individua countries views as a single unit.
Microeconomics
Choices and activities at individual or firm level.
• Households & firms interact within markets
Macroeconomics
Choices and activities across several markets & sectors.
What are the key terms or measures of economic activity?
- GDP
- GNI
- Inflation
- Unemployment
Unemployment
State of a specified age group not being under paid employment or self employment but currently available for work in the reference period.
GNI
Gross National Income
The total income from economic activity of citizens & firms of a county regardless of where they occur.
• GNI = GDP + income country’s citizens earn abroad - income of foreign citizens.
Inflation
The general rise in prices through time which means that money loses it’s value over time.
GDP
Gross Domestic Product
The total value of goods and services manufactured within a year.
Neoliberalism
Ideology & policy model emphasizing the value of free market competition
What made neoliberalism ideology & policies more influential?
- British Labour Party embracing a “third way” approach to economies: combines free-market capitalism & gvt intervention & regulation. Combines socialism & neoliberalism. 1995
- Policies of British Labour Party & U.S. Democratic Party (1990s)
What are the main elements of neoliberalism?
- Trade liberalization
- Tax reforms
- Deregulation
- Privatization
- Decreased public expenditure
- Floating interest rates
Advantages of neoliberalism on health sector
- Improved quality
- Increased options
- Increased efficiency
- Innovation
Disadvantages of neoliberalism on health.
- Reduced access to healthcare for marginalized & vulnerable to to privatization.
- Focus on profit can lead to reduced health efficiency.
- Reduced quality because government regulates less on who can practice.
General advantages of neoliberalism.
- Often successful in creating macroeconomic stability.
- Generated economic growth in some areas.
- Increase in role of NGOs/ CSOs
- Points under healthcare can be applied to any other service offered.
Limitations on neoliberalism.
- Decline in economic growth in some areas
- Poor distribution of the benefits of economic growth
- Decline in population health & education due to minimal gvt input
- Increased poverty
- Political repression. E.g. Chile
- Role gvt has to play in development is misinterpreted. e.g. Taiwan, Japn, S. Korea, Bhutan.
- Intensifies climate chaos. Neoliberals would rather deny or forego the effects of climate change if tackling it affects profit.
- Health negative consequences due to privatization & focus on profit.
Costs of neoliberalism.
- International capital flows generate economic instability.
- Linked to rising inequalities: relative income stagnation at bottom half of countries.
- Democracy is undermined due to inequalities. The upper mwambas influence decision making
- Intensified climate chaos
- Effects of health due to privatization & focus on profits
Globalization
Integration of the world economy through movement of goods and services, capital, technology and labour that leads to economic conditions being influenced by global conditions.
Categories of factors that influence health (related to the global economy)
- Risk factors: genetic predisposition, environmental influences, infectious disease etc.
- Household economy: how individual and household behaviours & decisions impact health.
- Health sector: impact of goods & services consumes to improve health status
- Non-health sector.
How do economic liberalization and trade affect health?
- Economic liberalization: reducing barriers to make grade easier. Influences economic growth which in turn influences health ( changes in consumption of various goods & services)
- Trade directly affects health sector by providing and distributing health related goods, services and labour.
