neoliberlism

Question 1

what is neo liberalism

Answer 1

a more contemporary version of modernisation- its more radical.
-emphasis on economic change
-free market solutions to development
-economies grow when state intervention is absent
-laissez fair approach to politics

Question 2

is neoliberal pro or anti capital stance

Answer 2

pro capitalist

Question 3

what is the neoliberal opinion on politics

Answer 3

-laissez-faire approach to politics
-economies grow when state intervention is absent

Question 4

how do neoliberallists suggest countries can develop

Answer 4

-private investment
-international free trade
-fewer protections for workers and the environment

Question 5

how does private investment help countries develop?

Answer 5

sell industries that were previously state run to private companies. cutting taxes so that the state has less involvement and entrepreneurs are encouraged, production is also governed by supply and demand

Question 6

how does international free trade help countries develop?

Answer 6

reduce the barriers to trade; less tax on corporate profit, reduce amount of formal rules eg health and safety regulations. seek the help of the IMF, WB ect

Question 7

how do fewer protections for workers and environment help develop countries

Answer 7

scrap minimum wages, permanent contracts. more freedome for companies

Question 8

what influenced the rise of neoliberalism 1980

Answer 8

-Thatcher in the uk and Reagan in the usa

-the influence of the IMF, world bank and world trade organisation grew stronger thanks to neoliberalism

Question 9

neoliberal opinion on aid

Answer 9

highly critical of role of western aid from western countries;
-many corrupt governments were propped by from aid from west
-creates dependancy of poor countries on rich
-hinders development

Question 10

what does Bauer argue about aid

Answer 10

hinders development, undermines entrepreneurship, props up corrupt regimes, distorts markets, countries become stagnant and aid is unsustainable

Question 11

Milton Friedman opinion

Answer 11

-countries need to find a ‘niche’ in the market; produce something that no one else does, or produce it more cheaply
-natural resources should be exploited for sake of development
-structural adjustment plans will help control economic mismanagement
-countries should shift towards exports

Question 12

criticisms of neoliberalism (free market polices)

Answer 12

-free market is romanticised;it can be exploitative

-countries that have adopted free market policies have developed more slowly than those who protected their economies- stiglitz points to china as a great example of this’d

Question 13

criticisms of neoliberalism (dependancy)

Answer 13

argue that neo liberalism is merely a way to open up counties so they are more easily exploitable by TNCS

Question 14

criticisms of neoliberalism (TNCs)

Answer 14

TNCS don’t tend to invest in poorest countries, therefore the opening up of trade barriers is ineffective and potentially harmful to these countries

Question 15

criticisms of neoliberalism (SAP)

Answer 15

structural adjustment plans set many countries up for a fall, remember case of jamaica where it was heaped to buy imported vegetables than locally grown

Question 16

what is free market

Answer 16

buying and selling of goods which is not under government control
people can buy and sell freely , there is limited government intervention to influence or change the outcomes of market activity