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Organisational Change and Development - Essay Example

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Name Instructor Task Date It is true that ‘everything must change so that everything can stay the same’. The concept of neoliberalism will try to justify this statement in this assignment. Neoliberalism has in the past, become an exhortation in many debates, ranging from academic to political (Laidler, 2006)…
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Download file to see previous pages Thus, the distinct ideology that is neoliberalism is said to have descended from, but different to liberalism. This interpretation portrays neoliberalism as sharing historical roots with liberalism. The study of neoliberal ideology in detail is somewhat hard since no writer has written about neoliberalism from sympathy or neutrality. Virtually everyone who has written about the subject has criticized the ideology. Neoliberalism has ushered the return of one liberal aspect: economic liberalism. Economic liberalism is the belief that state governments should not control their economies; instead, this should be left to individuals and market institutions in self and free-regulating markets. Economic liberalism and neoliberalism should be separated from liberalism in word and deed, which, as a political ideology is applicable to constitutional changes and reviews, legal/administrative reform implementation leaning towards democracy and freedom. According to Harvey (2005, 20), “we live in the age of neoliberalism.” Many neoliberals share the same sentiments, but not necessarily factual, that power and wealth are, to an increasing degree, concentrated within powerful transnational entities and elite groups because of neoliberalism, which is the practical implementation of a political and economic ideology. Neoliberalism is also a dominant ideology influencing the world today. Neoliberalism is seen as a wholly new paradigm for policymaking and economic theory and implementation (Doepke, 2005). This ideology is behind the recent stage in development of capitalist society. Neoliberalism includes monetarism and other correlated approaches, and dominates policy making in microeconomics, and the subsequent implementation. This is shown by relaxation of economic state regulations, and emphasis is put on economic policy stability. The possibility of the existence of a free regulating market is a vital assumption in classical liberalism and among neoliberals, as well. Efficient and effective resource allocation is the most important function of an economic mechanism, and market mechanisms are the most efficient ways for resource allocation. Government economic interventions are usually undesirable, because intervention usually undermines the gains of market fine-tuning, and thus reduction economic efficiency. Governments have to guarantee the integrity and quality of money (Doepke, 2005). They must also set up functional, legal structures needed to access and secure rights on private property. Governments also ought to guarantee survival and functioning of markets by use of alternative means like force if need be (Friedman, 2006). Beyond these state responsibilities, the government ought not to feature anywhere and must play in the confines of its roles. According to neoliberalism, once markets have been created; state interventions in these markets must be at minimum levels. This is attributed to the fact that the state cannot possibly have sufficient information to comprehend market signals/prices. Another explanation is the fact that powerful and influential interest groups or individuals will probably distort state interventions in pursuance of their personal whims. This mostly happens in democratic societies (Harvey, 2005, 5). ‘Everything changes so that everything remains the same’ expounds the belief that the world is experiencing massive turns towards ...Download file to see next pagesRead More
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