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NEOLIBERALISM

Introduction: Focus on the concept of neoliberalism and its

historical context. The term is often used pejoratively by critics.
Viewed negatively by some authors who lament these trends.

Widespread Concept: It has gained prominence in political and

academic debates over the past twenty years and is described as
the dominant ideology shaping the modern world.

Definition: Neoliberalism constitutes a resurgence of liberalism,

highlighting a firm belief in free market capitalism and
individual rights following a significant absence from political
discourse and policy-making.

Potential for Precise Definition: Often seen as imprecise in

literature and used to describe undesirable tendencies, the term
can be defined more accurately to serve as an analytical tool,
aiding in understanding recent economic and political trends.
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Alternative Interpretation: Neoliberalism is an ideology

distinct from traditional liberalism, although it shares historical
roots and basic vocabulary with liberalism.

Comparison with Neoconservatism: Like American

neoconservatism, which is related to but different from
conventional conservative thought. Neoconservatism is often not
easily recognisable as genuinely conservative.

Differentiation from economic liberalism: Neoliberalism is

commonly seen as the resurgence of economic liberalism,
emphasizing minimal state intervention in the economy and
individual participation in free markets. It's important to
differentiate economic liberalism and neoliberalism from
liberalism, encompassing a broader political ideology favoring
constitutional changes and reforms towards freedom and
democracy.

Criticism: Seen as promoting the spread of global capitalism

and consumerism. Associated with the decline of the proactive
welfare state.
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Current Relevance: Despite its broad use, claiming we live in a

purely neoliberal age or society may be an overstatement.

CONCEPTUAL BACKGROUND

In order to comprehend neoliberalism, the article devotes a

portion to examining the history and variants of liberalism. It
charts the development of liberalism over a number of stages:

Classical liberalism: Linked to theorists like Adam Smith, John

Locke, Alexis de Tocqueville and Friedrich Hayek, it advocates
for minimal government involvement and emphasizes individual
accountability, market self-regulation, and personal freedom.
Thus, there are many similarities between classical liberalism
and the "economic liberalism". Furthermore, classical liberals
are frequently depicted as main proponents of "neoliberalism"
due to their propensity to support laissez-faire economic
policies.
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Modern liberalism: In contrast to classical economic

liberalism, modern liberalism, which was influenced by John
Stuart Mill and John Rawls, calls for a more active role of the
state in the economy to guarantee equality and access to
necessities.

Libertarianism: Frequently regarded as a branch of classical

liberalism, libertarianism places a higher priority on individual
liberty while downplaying or even eliminating the role of the
state, as demonstrated by the writings of Murray Rothbard and
Robert Nozick.

THE CONCEPTUAL HISTORY OF

NEOLIBERALISM

Origins: The term ‘neoliberalism’ dates back to the late

19th century, introduced by Charles Gide in a polemic
against Italian economist Maffeo Pantaleoni. Initially, it
suggested a return to classical liberalism.
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Post World War II Evolution: After World War II, it

evolved into a critique of state intervention, associated with
economists such as Hayekand Milton Friedman, who
opposed Keynesian economics and promoted free
markets, deregulation, and privatization.

Limited Mid-20th Century Usage: Over forty years, the

term "neoliberalism" was rarely used, primarily to describe
West Germany's social market economy, influenced by
thinkers like Wilhelm Röpkeand other ordo-liberals.

West Germany’s “Third Way”: Nawroth's research

demonstrates how West German Chancellors Ludwig
Erhard and Konrad Adenauer combined Catholic social
teachings, liberal democracy, and market economy. This
strategy, known as "neoliberalism," sought to establish a
"third way" between communism and fascism.

Modern Neoliberalism: Neoliberalism is frequently

presented in current discussions as the prevailing economic
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policy paradigm since the 1970s, replacing the Keynesian

emphasis on social welfare and full employment.

ARGUMENTS

Positive Arguments

1. Increased Economic Growth - Neoliberal policies like

deregulation, tax cuts, and free trade can stimulate
economic growth by encouraging entrepreneurship and
reducing barriers to business. Example: The economic
growth experienced in countries like the U.S. under
Reaganomics and the U.K. under Thatcher is often
attributed to neoliberal policies.

2. Promotion of Free Markets- Neoliberalism advocates

for market-driven economies, allowing supply and demand
to determine prices and efficiency. Example: The success
of Silicon Valley is often seen as a result of a deregulated
environment that fosters innovation and competition.
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3. Reduction of Government Debt- By limiting

government spending on welfare and public services,
neoliberalism can reduce national debt and deficits.
Example: Austerity measures in countries like Germany
helped them maintain strong financial stability.

4. Encouragement of Globalization - Neoliberalism

supports open international trade, which fosters global
interconnectedness and economic integration, allowing
countries to benefit from comparative advantages.
Example: China’s economic growth since opening up to
global trade and markets is often linked to adopting
neoliberal trade principles.

5. Increased Efficiency and Innovation- By reducing

government intervention and allowing competition,
neoliberalism can lead to more efficient production and
innovative solutions in industries. Example: The
telecommunications industry in many countries, like India,
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has flourished due to deregulation, leading to affordable

services and technological advancements.

Negative Arguments

1. Rising Inequality - Neoliberalism often leads to income

inequality as the rich benefit more from deregulation, tax
breaks, and privatization, while lower-income individuals
see fewer benefits. Example: In the U.S., income
inequality has increased significantly since the 1980s,
partially attributed to neoliberal economic policies.

2. Weakening of Social Safety Nets- Neoliberal policies

tend to reduce government spending on social welfare,
leading to cuts in public health, education, and welfare
programs. Example: Austerity measures in Greece during
the financial crisis led to severe cuts in healthcare and
social services, impacting the vulnerable populations most.

3. Environmental Degradation- By prioritizing economic

growth and deregulation, neoliberalism can lead to
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insufficient environmental protections, allowing

corporations to prioritize profits over sustainability.
Example: Neoliberal policies in Brazil have been criticized
for contributing to deforestation in the Amazon due to lax
environmental regulations.

4. Concentration of Corporate Power- Neoliberalism can

lead to the concentration of power in large multinational
corporations, which may dominate markets, limit
competition, and exert significant influence over
governments. Example: The dominance of tech giants like
Google, Amazon, and Facebook reflects how neoliberal
policies have allowed these companies to grow without
strict antitrust regulation.

5. Undermining Democracy- Neoliberalism often shifts

decision-making power from democratic institutions to
private corporations and markets, weakening public
participation and accountability. Example: The influence
of corporate lobbying in U.S. politics, where major
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corporations shape policies in their favor, undermines the

democratic process.

These arguments reflect both the opportunities and challenges

associated with neoliberalism, highlighting its potential for
economic growth and efficiency while also drawing attention to
its social and political consequences.

CONTRIBUTIONS OF NEO LIBERALISM

Macro-economic policy making: Neoliberalisim has dominated

macroeconomic policy making, by putting least state regulations
on the economy and it has focused on the stability present in the
economic policy .

Self – regulating market: Self-regulating market as an important

presumption among neoliberal as well. To maintain the
economic system, it is necessary to allocate the resources
efficiently.
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Privatization: Neoliberal policies in most cases it includes

transferring public services and assets to the private sector, so
that service delivery can be improved through competition.

Globalization: As neoliberalism has promote increased global

interconnectedness, influencing economies, cultures and policies
around the world.

CRITICISMS OF KEYNESIANISM

It criticizes the Keynesian model of government intervention in

the economy, arguing that it can lead to inefficiencies and
economic instability.

Market liberalization: Neoliberalism recommend for the removal

of trade barriers and restrictions, encourage global trade and
investment, which can lead to economic growth.

Individual responsibility: Neoliberalism influence the individual

to take up the responsibility for their own economic success,
which can encourage entrepreneurship and personal initiative.
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SIGNIFICANCE WITH SOCIAL WELFARE

Neoliberalism, which emerged in the 1970s and 1980s, is an

economic and political ideology that emphasizes:

1. Free trade and open markets

2. Deregulation of industries
3. Privatization of public services
4. Reduced government spending and taxation
5. Individualism and self-reliance

Consequences of neoliberalism on society can be far-reaching

and complex. Some of the significant effects include:
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Economic Consequences

1. Increased income inequality: Widening gap between the rich

and the poor.
2. Job insecurity and precarious work: Rise of temporary, part-
time, and gig economy jobs.
3. Decreased social mobility: Reduced opportunities for upward
mobility.
4. Financial crises: Increased risk of market volatility and crises
(e.g., 2008 global financial crisis).
5. Environmental degradation: Prioritization of profit over
environmental concerns.

Social Consequences

1. Erosion of public services: Reduced funding for healthcare,

education, and social welfare programs.
2. Increased poverty and homelessness: Reduced social safety
nets and support.
3. Decreased community cohesion: Emphasis on individualism
over collective well-being.
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4. Mental health concerns: Stress, anxiety, and depression linked

to neoliberal pressures.
5. Polarization and social unrest: Growing discontent and
inequality can lead to social tensions.

Political Consequences

1. Decreased government accountability: Reduced transparency

and democratic participation.
2. Rise of authoritarianism: Neoliberalism can enable
authoritarian tendencies.
3. Weakened labor unions: Reduced collective bargaining
power.
4. Increased corporate influence: Corporate interests prioritized
over public interests.
5. Globalization and cultural homogenization: Threats to local
cultures and economies.

Cultural Consequence
1. Commodification of everything: Market values dominate
social relationships.
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2. Consumerism and materialism: Emphasis on consumption

over social values.
3. Decreased civic engagement: Reduced participation in public
life.
4. Erosion of traditional values: Family, community, and social
solidarity.
5. Cultural homogenization: Loss of local cultures and identities.

Summary

Although neoliberalism contributes positive change in the society

including:
● Entrepreneurship
● Foreign Trade
● Employment
● Globalization
● Privatisation

But its negative consequence is more vast than positive outcomes

because every positive outcome of neoliberalism is contributing to a
negative impact in the society and thus social welfare is being
compromised.
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A classic example of neoliberalism is Covid 19 when all the Neo liberal

policies or rather economy came crumbling down.
● Privatization- Privatisation provides smooth and upgraded services
but During Covid 19 government hospitals saw more deaths than
that off private hospitals due to unavailability of oxygen cylinders
and proper care.
● Consumerism and commodification of everything at the cost of
people’s lives was the worst thing we have experienced during
Covid 19. For example, USA saw more death rates than Indian as
strict lockdown was not imposed and markets were open to balance
the economy.
● Reduced government intervention is one of the Neo Liberal
ideologies which can be highly criticised. For example, during
Covid 19 when economy came crumbling down the government of
each state provided free rations and health care safeties to the
individuals there nobody questioned the businessmen’s and the
entrepreneurs. When a crisis occurs it’s always the government
that is criticized thus violating neoliberalism's own ideologies.
These consequences are not universal and may vary depending
on the specific context and implementation of neoliberal
policies. However, they highlight the potential risks and
challenges associated with neoliberalism.
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THANK YOU

● Sohini Gupta ( Introduction )

● Shreeparna Das (Conceptual Background)
● Sukanya Mondal (Arguments)
● Akangkhya Puzzari (Contribution)
● Sayani Saha (Significance)