Globalization - Understanding globalization - Rise of neoliberal globalization
6 important questions on Globalization - Understanding globalization - Rise of neoliberal globalization
What are earlier forms of globalization?
Empires never succeeded in obliterating boundaries and borders; they merely readjusted them to the benefit of politically dominant powers.
What is the contemporary form of globalization?
+ it has gone hand in hand with the advance of neoliberalism.
Why are globalization and neoliberalism so closely linked?
--> strong downward pressure exerted on public spending and welfare budgets (in a context of heightened global competition, the control of inflation has displaced the maintenance of full employment as the principle goal of economic policy).
Has led to neoliberalism as dominant ideology.
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What else has stimulated the remaking of the world economy on neoliberal lines?
- Strong faith in open markets and trade liberalization and a shift in many developed economies from manufacturing to services, the former increasingly being exported to the developing world.
What is at the core of the neoliberal growth model?
--> made possible by a massive expansion of the financial sector of the economy.
In the process: capitalism was turned into 'turbo-capitalism', benefiting from greatly expanded monetary flows that were seeking an outlet in increased investment and higher consumption. Although this process involved a considerable growth of public and often private debt, this was thought to be sustainable due to the underlying growth that the debt fuelled.
What are critiques on neoliberal globalization?
In Russia this created a backlash against market reform and led to strengthened support for nationalist and authoritarian movements.
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