Neoliberalism Essay

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What are the impacts of neo-liberal development policies on poor countries? Answer Neo-liberalism is an ideology in which states are the key actors in international relations and they try to gain absolute gains or advantages by cooperating with each other. This absolute gain can be limited by the behaviours like non-compliance or cheating by states. In this, kind of relationship states shift their loyalty and resources towards institutions to gain mutual benefits and to secure their international interests (Baylis, Smith & Owens 2008, p132). In neo-liberal perspective of institutionalisation is relative towards the mutual interest for example, most world leaders believe on free trade as mutually beneficial, so they support trade rules, which help to build up environment for free trade (Baylis, Smith & Owens 2008, p132). Neo-liberalism is all about free market, which has maximum freedom for entrepreneurs within an institutional framework, which characterized by Private Property rights, Individual freedom, free market and free trade (Harvey, D. 2006, p.145). The ideology of neo-liberalism was emerged after the 1973 great recession with the construction of Washington consensus [1] in 1990 (Harvey, D. 2006, p.148). This essay will look at the impact of neo liberal development policies on poor countries. It is widely believed that adoption of these policies has negatively affected the third world countries. First, the state spending on health and education has reduced. Second, the Structural adjustment policies (SAPs) introduced by IMF and WTO has adversely affected the economies of poor countries and make the situation of their people worse. Finally , neo- liberalism promote the debt crisis between third world and west , which is came about because of the excessive and unwise lending by western banks and International financial institutions (Baylis, Smith &

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