Neoliberalism Concept - Coursework Example

s an есоnоmiс and роlitiсаl рrоgrаm, nеоlibеrаlism рrоmisеs that еvеryоnе will be able to gain from thе benefits of glоbаlizаtiоn but in рrасtiсе, there is сlеаrly grеаt disраrity. Name Subject Professor Date As an есоnоmiс and роlitiсаl рrоgrаm, nеоlibеrаlism рrоmisеs that еvеryоnе will be able to gain from the benefits of glоbаlizаtiоn but in рrасtiсе, there is сlеаrly grеаt disраrity. Discuss with rеfеrеnсе to thе аdvаntаgеs and disаdvаntаgеs of nеоlibеrаlism. For a long period of time, nеоlibеrаlism has been the mainstream of the world’s economy. It is an economic and political program that on the face promises that every individual is in a position to benefit from the advantages associated with globalization. Nonetheless, this is not usually the case since people have continued to suffer in the regime of nеоlibеrаlism. Nеоlibеrаlism is used to describe free market economics and involves policies that are related to free trade, price deregulation, flexible labour markets, privatisation and a reduced size of government. Nеоlibеrаlism was initiated in the 1930s as an economic idea that advocated for free markets as well as state intervention. It was aimed at offering a middle path or social democracy between the Marxist approach and the perceived failure of classical economics that prevailed that time. It is however worth noting that the initial meaning and aim of nеоlibеrаlism has been lost. Now, nеоlibеrаlism is mostly used as a term that criticizes the aspects of free market economics, heightened inequality of modern capitalist economics and globalization (Walkerdine and Bansel, 2010, p.492). This piece of paper will give a critical discussion of the concept of nеоlibеrаlism and various aspects associated with it. However, much emphasis will be on its influence on the general society and the fact that it has not been all positive as it claims. This will be made possible by examining the benefits and drawbacks of nеоlibеrаlism in an effort to draw an informed inference on its impact on people. It is clear that the original meaning and intent of nеоlibеrаlism has been lost. Instead of bringing about equality among individuals in the society, it has been found to divide them and increase the gap between the rich and the poor. Nеоlibеrаlism is built on the notion that the flow of the market economy ought to be maintained through the need to expand and intensify the market, which is in turn achieved by reinforcing the efficiency in the market and reducing government intervention. Nеоlibеrаlism is founded on the belief that the government is supposed to handle limited aspects of a nation’s economy for instance control for extreme monopolies and security. Nеоlibеrаlism supports free world trade without harsh restrictions, enterprises having unlimited freedom and liberal movement in labour-force market (Hursh and Henderson, 2011, p. 179). The benefits that nеоlibеrаlism was thought to bring to the general society have however not been achieved and some people continue to suffer. Nеоlibеrаlism is associated with a number of benefits. It is believed to increase the efficiency of the market economy. This is more so because the policies of nеоlibеrаlism are meant at minimizing the influences from governmental forces, an aspect that translates to companies and producers gaining incredible power in the market. Businesses are therefore in a position to produce products and services more actively and thus maximize on their profits. To a great extent, nеоlibеrаlism revitalizes the interactions between producers and consumers and maximizes on the efficiency of the market thus making business better. There is also a great chance of heightening the creativity and competitive power of business organizations. Another major advantage that is associated with nеоlibеrаlism is that it has promoted globalization. This has been through encouraging free trade among countries as well as integrity of markets. Through nеоlibеrаlism, there has been smooth exchange of cultures and information across nations, an aspect that boots globalization (Ibrahim, 2012, p.6). . According to Ibrahim (2012, p.8), nеоlibеrаlism has been beneficial especially to the big institutions and corporations. For instance, big banks and corporations continue to accrue wealth thorough financialization of economies and structural adjustment programs, which in one way or the other ruin the developing economies. Also, large corporations have always had a chance to accumulate wealth through nation building and war profiteering. Weakening of democratic institutions and exploitation of resources and cheap labour in developing nations are also other ways that are utilized by big corporations to accumulate wealth. However, it is obvious that this is done in the best interest of those with power at the expense of those who do not, an aspect that points back to inequality. Duménil and Lévy (2011, p. 112) assert that nеоlibеrаlism is also linked to various drawbacks. It is an aspect that has been linked to most problems that are experienced today especially within economies. For instance, nеоlibеrаlism has been cited as the major reason behind the widening of the gap between the rich and the poor in the contemporary society. Limitless competitions between individuals and groups of producers increase the gap. While the rich continue to prosper based on their original possessions, the poor continue to deteriorate and greatly suffer from economic hardships. This also affects companies and corporations with the big ones benefiting a lot at the expense of the small ones who are left struggling to survive. Lack of government intervention is likely to lead to unhealthy competition thus increasing the economic gap that exists among individuals as well as business enterprises Another problem that is linked with nеоlibеrаlism is an increased rate of unemployment. Individuals with less ability are not likely to get job opportunities and could easily get fired compared to ones deemed to be more qualified. In reality, there ought to be equality in allocating employment chances such that every individual is in a position to get a job that is commensurate to their qualifications and abilities. Lack of government regulation on employment and lack of it creates problems to the disadvantaged. Also, despite the fact that nеоlibеrаlism is highly praised for the realization of globalization, not all are in a position to enjoy the benefits coined to globalization and its effects. There is also the other side of the story whereby globalization also has some drawbacks on the society (Duménil and Lévy, 2011, p.56). For instance, too much globalization has resulted to the erosion of some cultures especially in the poor countries as they are forced to follow the economic pressures of the developed nations. Aspects such as exploitation, structural adjustments, and war profiteering and wealth disparity are associated with negative effects to the general society. They are for example associated with bringing about the feeling of resentment, societal disintegration and resentment. There is also desperation, alienation and rebellion among those in the developing world. The benefits of nеоlibеrаlism are overshadowed by the drawbacks involved. This therefore means that it has not met the initial aim especially with regard to bringing about equality for all. For this reason, there is a need for turning back or taking measures that are aimed at making the situation better for all the parties involved. The effect of the rich few benefitting at the expense of the many that are poor is not a good thing in any way and should be dealt with appropriately. Although nеоlibеrаlism has some advantages, it does not seem to fulfil the aim for which it was implemented; that of everyone benefiting from globalization. However, all is not lost and there ought to be strategies that are aimed at managing the negative effects effectively while at the same time reinforcing the positive attributes of nеоlibеrаlism. For instance, there is need for the government to have some control over the market. In a way, this will reduce unfair competition. The government should take up the welfare docket so that the poor may be uplifted through financial support. This will reduce the gap between the rich and the poor. Creating employment opportunities for all is also a positive strategy that will work towards reducing the rate of unemployment in the society. The effects of globalization could also be controlled such that the positive aspects are embraced while the negative ones are done away with. For instance, original or local cultures should not be eroded by the effects of globalization and replaced by other cultures from developed nation (Hursh and Henderson, 2011, p. 182). The implementation of some or all of these strategies will go a long way in dealing with the negative effects of nеоlibеrаlism. In summary, it is apparent that nеоlibеrаlism is a concept that is surrounded by great controversy. It has some proponents as well as opponents. It is also clear that just like many other concepts, nеоlibеrаlism has its own fair share of benefits and drawbacks as discussed above. For instance, nеоlibеrаlism has enhanced business performance through increased freedom and it has promoted globalization. On the other hand, nеоlibеrаlism has heightened the gap between the rich and the poor, increased the rate of unemployment and brought along the negative effects of globalization. Contrary to the promise of nеоlibеrаlism that it makes every individual enjoy the benefits of globalization, there is the other side of the coin and people have suffered as a result of the policies associated with nеоlibеrаlism. The reality of the effects of nеоlibеrаlism should be understood and the positive attributes embraced while at the same time manage the negative attributes in an effective manner. References Duménil, G. and Lévy, D., 2011. The crisis of neoliberalism. Harvard: Harvard University Press. Hursh, D.W. and Henderson, J.A., 2011. Contesting global neoliberalism and creating alternative futures. Discourse: Studies in the cultural politics of education, 32(2), pp.171-185. Ibrahim, A., 2012. Strengths and weaknesses of the neo-liberal approach to development. Munch: GRIN Verlag. Walkerdine, V. and Bansel, P., 2010. Neoliberalism, work and subjectivity: towards a more complex account. The Sage handbook of identities, pp.492. Read More