Neoliberalism Essay

Over the past decades,the type of economy that has been adopted is neoliberalism. Neoliberalism creates an unstable economy to third world countries, but benefits the first world countries. Neoliberalism could be seen as the practice of unchain, liberate and free from all government boundaries and any rules that could affect the economy between the first world and the third world countries. The mandatory and regulations of the enforcements of the international and in country government associations like International Monetary Fund (IMF)and the World Trade Organization (WTO) are the causes of privatization of markets to happen. This leaves third world countries at the bottom of the global economy and as a result, they are not given the opportunity

Many important representatives across the world met at the Bretton Woods Conference in 1944 to consider a new type of financial system that would work the best for the future of the global economy so the every country had the same opportunity. As a result of the meeting the IMF and the WTO were created to create a better economy for the future, as McMichael mentions in his book. Not to mention the Western aristocracy enact the General Agreement on Tariffs and Trades (GATT) after the war was finished to encourage economic recovery by diminishing barriers such as tariffs, subsidies and rations to help out the third world countries (McMichael). The importance of this international meeting was to create an economic growth that would create a stable and outstanding advancement in the global

Structural adjustment programs enforced through the IMF become quite troublesome because it takes an impact on public services that help those in need the most (McMichael). Strictness programs like SAPs exacerbate poverty in countries that were impacted the most by the debt regime such as Mexico. As a result of that poverty, malnourishment increased because staple foods like tortilla, beans, and dehydrated milk were eliminated (McMichael). Although this may seem trivial, it is in fact crucial because it demonstrates how exploiting other countries can take a negative impact on people’s ways of living,but also taking it more serious the threatening that they had to go through so that they could survive. Import Substitution and Industrialization (ISI) was a trade policy most commonly applied in governments across the Latin America. The goal of ISI is to protect all local industries through subsidies and quotas so that other huge industries won’t take over them (McMichael). This is significant because is this policy was not made than the poor countries in Latin America would still be having the problem of not abling to grow economically. Keynesianism policies were imported to the Global South as countries adopted the ISI model for their benefits so that other