Neoliberal Capitalism

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To begin with, it is necessary to discuss some basic information about the current system in place. Neoliberal capitalism is an economic system that promotes free market policies of liberalization, deregulation, privatization, and the cutting of social support systems. The International Monetary Fund and the World Bank are two key organizations that help spread free market policies through globalization by implementing structural adjustment programs as conditions for any aid or support to any third world developing countries. Once structural adjustment programs are put into place they tend to disrupt developing countries’ economies and end up making them even worse off than before. Before the 1980s, developing countries had a per capita growth rate of more than 3%, once structural adjustment programs were put into place growth rates dropped to 1.7% (Hickel 2012: 7).
An example of an agreement that was made under the terms …show more content…

producers. The Mexican meat industry lose over 120,00 jobs in total because of the influx of inexpensive meat products from the United States. Farmers inability to make any sort of sustainable living of small scale farming created pressure for these people to migrate to survive. Before the agreement, in 1991-3, indigenous people made up only 7% of Mexican migrants, and in 2006-8 they made up 29% (Bacon 2014: 1-6). This provides evidence that these programs are pushed at developing countries in efforts to create ideal investment opportunities for transnational corporations in their “race to the bottom.” The “race to the bottom” is where transnational corporations compete with one another to find the most cost-effective way to produce their goods, this typically means trying to find the cheapest labor and materials to make their products. Developing nations, desperate for any investment, will compete to gain investment opportunities, even if the cost is their nation’s sovereignty. This economic system is

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