Globalisation & Neoliberalism

Globalisation & Neoliberalism

1. Process of economic globalisation which radically intensifies within first half of 20th and 21C

2. MAIN IDEA

   • Increase in volume of trade and investment built upon an international division of labour which inter-links state economies in a new way
   • Creation of global markets in commodities, natural resources, finance, tech result in high levels of eco inter-dependance between national economies
     • Dependant on each other and highly sensitive to changes in global markets like capitalism
   • Fluid movement of capital across national boarders - states in competition to secure capital (domestic & foreign investment)

3. Redesigning role of state 1980s

   • KEY IDEA
     • Adopt policies which de-regulate economy and open it up to the global market
     • Free market principles (and self-interest) to direct the national economy
     • Privitisation of formerly nationalised assets such as energy, transport..currently Sussex situ
     • Adam Smith - invisible hand' pf market guided by private actors engaged in self-interst
   • HOW IT HAS AFFECTED RIGHTS OF INDIVIDUALS
     • State interference as band as free market as only means of securing eco growth an individual liberty
     • Providing social justice is no longer a role pursued by the state - indi moral responsibility (to work hard, save, invest wisely)
     • PROBLEMS WITH NEOLIBERALISM
       • Replaces an ineffective public monopoly with ineff private
       • Market failure - external factors not accoutned for e.g. environmental and their subjection to crisis
       • Owner accountability?
       • Limitation of democracy - will of the people as danger to the working of free market
         • Creation of greater inequality as wealthy elite accumulates greater wealth via attaining cheap private ownership of public assets

4. • Does neoliberalism involve a minimalist government? Or does it require a very activist government to continually create markets, defend them, and save them (i.e. saving British banks from bankruptcy) in times of crisis? • Should all public assets be privatised? How does this fit with an idea of social justice? • Negative or positive liberty? • A constitutional order of equality, or , a constitutional order of egoism?