Neoliberalism THEORY Flashcards
What kind of approach is neoliberalism and what does it aim to do?
A market-driven approach which aims to maximise the role of private business.
Key difference between modernisation and neoliberalism = the _____ from ________ style __________ control to the ________ of the __________.
a) shift
b) Keynesian
c) government
d) dominance
e) large company
What caused the global economic slowdown in the 1970s?
Oil price increase of 1973 and 1979.
Examples of the effect of the global economic slowdown of the 1970s:
________ in the ____ of ___ (and a ‘_______’ in the ______).
___________ in the _____ with ________ led to belief in ‘______________’.
The belief that _______ off ______________ could save _______________.
a) recession, north, UK, ‘debt crisis’, south
b) disillusionment, north, government, ‘magic of the market’
c) selling, inefficient public enterprises, government money
What theory did neoliberalism replace and when?
Modernisation in the early 1980s
What kind of movement is neoliberalism?
New Right that supports a free market economy
What is a free market economy?
When the government doesn’t get involved in it.
Development a natural consequence of allowing _________ complete _______ and _______ all _______ owned __________ to ______________.
This means __________ fund fewer ________ so they can lower ______.
a) corporations, freedoms, seling, publicly, infrastructure, private organisations
b) governments, institutions, taxes
Lower taxes result in _______ paying _____ wages and _____ increasing ________.
_______ are _____ to work ______ and _______ because _________ is cut - you need your own ______ for _________.
a) employers, lower, profits, significantly
b) employees, driven, harder, longer, state support, money, everything
What is the neoliberal policy of privatisation?
Sell national assets like rail, post, schools & the NHS.
What is the neoliberal policy of cutting subsidies?
No funding for struggling businesses - if it fails, another will pop up.
What is the neoliberal policy of abolishing parastatal institutions?
Market regulates itself in a ‘race to the bottom’. Consumers spend less while bosses make more.
What is a parastatal institution?
Any institution working on behalf of the government, without a minister.
What is the neoliberal policy of cut state spending?
Pay less into welfare; make people pay into their own pensions, national insurance & education.
What is the neoliberal policy of cut state spending?
Pay less into welfare; make people pay into their own pensions, national insurance & education.
What is the neoliberal policy of cutting taxes?
Less spending means we can tax less. Consumers spend more and bosses make more.
What is the neoliberal policy of encouraging free trade?
Cut tariffs on as many goods/countries as possible. Low spending means they’re not necessary.
What is the neoliberal policy of intergrating into the global economy?
If a forgein company does something better, let them do it for us.
People here still get jobs, and the companies aren’t registered here so pay little/no tax.
Companies make more profits. Prices drop for consumers.
What are 3 reasons for cutting subisidies?
Save government money
Make competition between different countries ‘fairer’
Make industry more competitive
What are subsidies?
A sum of money granted by the state or public body to help an industry/business keep the price of a commodity or service low.
What is an example of a parastatal institution that was removed?
(3)
Reducing overheads in administration by removing institutions such as Potato Marketing Board.
They had regulated production, distribution and leading.
Seen as unimportant now as market forces should lead all of these factors for potato producers.
What do advocates of neoliberalism argue?
2
It has worked in some countries - the opening of the free market explains recent economic growth in countries such as China.
Where it hasn’t worked, the policies haven’t been fully implemented.
What do opponents of neoliberalism argue?
2
After 30 years or so of neoliberal reforms, development has proceeded at only a slow pace in most countries.
There’s also, arguably, a contradiction in that imposing free markers require a strong state that has to undermine it’s own role.
