Neolibralism Essay

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In the last century pace of global integration has increase dramatically. Advancement in communication, technology, and transportation has made the world more interdependent. Not only things such as politics, culture, and law are being globalized, but globalization of the economy has been increasing at the fastest pace. Over the last half of 20th century there have been many theories on the economic development model for the world and since the end of WWII, the neoliberal development model has dominated global development in literature and practice. In my understanding, the neoliberal development model is based on the ideas of free trade, free market, and integration between the countries of the world. This development model promises growth, prosperity, and elimination poverty. As discussed in class, this model has been strongly backed by the United States and organization such as the International Monetary Fund (IMF) and the World Bank were created to put this ideology into practice. As Robins stated generally poor countries with debt to the IMF or the World Bank for development reasons eventually ends up renegotiating the repayment of the debt and has no choice but to follow the terms set up by them. Commonly they demand the country to put free trade policy into place meaning removing all tariffs and trade barriers and opening up the country to foreign businesses (Robbins pg. 119). It can also be done militarily, as the United States did to Iraq. Prior to Iraq’s first democratic elections the United States imposed policies on the country that demonstrated free trade and the neo liberal development model in practice in the 21st century. Iraq had to suspend all tariffs no goods leaving and entering, lower corporate taxes to 15 percent, foreign banks to open, allow investors take 100 percent of the profits and many other unfavorable laws that only helped the

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