Neoliberalism is an ideology and policy model that emphasizes the value of free market competition and minimal state intervention in economic and social affairs. It is a political and economic philosophy that emphasizes free trade, deregulation, globalization, and a reduction in government spending. Neoliberal globalization is an approach to economic globalization, or the integration of the worlds economies, based on neoliberalism. The globalization that has taken place since the late 1980s has been guided by the neoliberal model, insofar as the national and international economic policies by which it was enabled reflect neoliberal beliefs and values.
Key characteristics of neoliberalism include a belief in sustained economic growth as the best means to achieve human progress, confidence in free markets as the most efficient means of allocating resources, and a commitment to the freedom of trade and capital. Neoliberalism involves the belief that greater economic freedom leads to greater economic and social progress for individuals.
Critics of neoliberalism argue that it has adversely affected national economies and economic relations between countries in a number of ways. Among the negative consequences associated with neoliberal globalization or with neoliberalism itself are the following:
- The state tends to withdraw from all areas of social life.
- The welfare state is weakened.
- Corporations are given too much power.
- Workers’ rights are threatened.
- Sovereign nations’ right to self-determination is undermined.
- Economic inequality is worsened.
While neoliberalism is often associated with globalization, it is important to note that globalization cannot be seen as synonymous with neoliberalism. Globalization has been facilitated by numerous technological and political developments, few of which can be tied directly or even indirectly to economic neoliberalism.
