Saturday, October 07, 2006

The Worldwide Class Struggle by Vincent Navarro

Neoliberalism as a Class Practice

A trademark of our times is the dominance of neoliberalism in the major economic, political, and social forums of the developed capitalist countries and in the international agencies they influence—including the IMF, the World Bank, the WTO, and the technical agencies of the United Nations such as the World Health Organization, Food and Agricultural Organization, and UNICEF. Starting in the United States during the Carter administration, neoliberalism expanded its influence through the Reagan administration and, in the United Kingdom, the Thatcher administration, to become an international ideology. Neoliberalism holds to a theory (though not necessarily a practice) that posits the following:

1. The state (or what is wrongly referred to in popular parlance as “the government”) needs to reduce its interventionism in economic and social activities.

2. Labor and financial markets should be deregulated in order to liberate the enormous creative energy of the markets.

3. Commerce and investments should be stimulated by eliminating borders and barriers to allow for full mobility of labor, capital, goods, and services.

Following these three tenets, according to neoliberal authors, we have seen that the worldwide implementation of these practices has led to the development of a “new” process: a globalization of economic activity that has generated a period of enormous economic growth worldwide, associated with a new era of social progress. For the first time in history, we are told, we are witnessing a worldwide economy, in which states are losing power and are being replaced by a worldwide market centered in multinational corporations, which are the main units of economic activity in the world today. more..


Post a Comment

<< Home