Lesson 2: Neo-Liberal Globalisation Flashcards
(20 cards)
What is globalisation?
A process of increasing interconnectedness economically, politically, and culturally among people and places around the world
- Has been further developed by the impact of technology
Defined by Legrain (2002) as how our lives become intertwined with distant others.
How does Steger (2017) define globalisation?
A set of social processes transforming weakening nationality into globality
Steger emphasises the shift from national to global identities.
What does Chirico (2014) say about globalisation?
A process in which the world is becoming a single place
Highlights the convergence of global spaces.
What is Marx’s perspective on globalisation?
The bourgeoisie exploits the world market, leading to cosmopolitan production and consumption. All old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose introduction becomes a life and death question for all civilised nations. Products are consumed, not only at home, but in every quarter of the globe.
Marx discusses how globalization dismantles local industries and creates global interdependencies.
What are the dimensions of globalisation?
- New concept of space and time (siginificantly shrinking): easier to reach bc of technology and development in tech + science
- Increased cultural interactions : spread of knowledge and science.
- Common sharing of risks some of which have shared calling for global solutions (climate change, immigration, terrorism).
- Tighter interconnections and interdependencies
- Interrelating dimensions reshaping global society
These dimensions illustrate the multifaceted nature of globalisation.
What are the historical forms of globalisation?
- Imperial/Colonial
- Industrial/Capitalist
- Neoliberal
Each form represents different economic and political contexts.
Free Market Capitalism?
What is neoliberalism?
Neoliberalism is a theory of political economic practices that “holds that the social good will be maximised by maximising the reach and frequency of market transactions, and seeks to bring all human action into the domain of the market” (Harvey, 2005: 3).
It is also known as free market capitalism : hegemonic (dominant values, beliefs, perceptions, practices and theories : made by Gramsci)
Defined by Harvey (2005) as a dominant economic approach since the 1970s.
What is hegemony in the context of neoliberalism?
UNIVERSALLY VALID VALUES: understood primarily through extremes, anti or marginal.
Made by Gramsci : describes the dominant values, beliefs, and perceptions in society that justify its organisation: shows how powerful groups in society cab maintain their position by reinforcing their world view as a cultural norm
Developed by Antonio Gramsci to explain how powerful social groups maintain their ideological position.
What are the effects of neoliberalism?
- Global free trade
- Economic inequality
- Cultural individualism
These effects have significant implications for society and economy.
What factors contributed to the growth of neoliberal politics?
- Slowdown in productivity
- Rise of information technologies
- Global production shift to lower wage economies
- Emergence of neoliberal theory
- Cultural shift towards individualism
- Collapse of the Soviet Union
- Restoration of class power
- ‘Shock doctrine’
These factors illustrate the complex dynamics leading to neoliberalism’s rise.
What characterised the Post-War Consensus in the UK?
Known as a mixed economy: (1945-49 hegemonic values)
- Political parties had differing views on several things BUT there was a general CONCENSUS / AGREEMENT along the lines of
- nationalisation
- strong labour unions
- heavy regulation
- generous welfare state
Anyone who questioned/ challenged these concepts were considered as marginal or extreme
These were the hegemonic values from 1945 to 1979.
What happened with Margaret Thatcher’s victory in 1979?
It challenged hegemonic beliefs which were (generous welfare state, high taxes, strong labour unions/ heavy regulation and nationalism). Her win allowed new beliefs to become dominant.
- Maybe the ‘76 economic crisis had something to do with this
This marked a shift towards neoliberal values.
How did neoliberalism change the way society is run?
Increased reliance on market principles over government control: laissez faire capitalism considered to be relevant again in a changing world
New information and communications technology makes high speed global trading possible such as goods, stocks and shares.
Emphasizes the belief that markets are more effective than governments.
What role do the IMF and World Bank play in neoliberalism?
Act as lenders of last resort to countries in crisis, promoting privatization and deregulation: Colonised by Chicago Economists resulted in a massive increase in inequality, economic failure and forcing open markets
‘sold the processes that countries need to undergo this process to save their economies’
Their policies have often led to increased inequality.
What changes in culture have resulted from neoliberalism?
- Neoliberal subjectivity: individual responsibility
- Individualisation of understanding of responsibility
- Public services sold to private companies
These changes reflect a shift in societal values towards individualism.
What is a consequence of neoliberal globalisation?
- Global ‘race to the bottom’ of wages
- Increased social inequality
- Cultural homogenization
- Unequal distribution of benefits
- Environmental destruction
These consequences highlight the negative aspects of neoliberal policies.
Effects of Neoliberalism (2008 Financial Crisis)
- Regulation put into place to prevent rechless lending after the Wall Street Crash (1929) was increasingly removed
- At the same time new ICTs made possible new forms of financial speculation
- People who worked in the mortgage sector were encouraged to buy, as well as pensions and other ‘assets’ were increasingly gambled in ‘secondary markets’ (Crouch, 2011). This ‘house of cards’ came crashing down in 2008 causing the financial crisis. Neoliberal governments responded by bailing out these banks – profits remained privatized, risks were socialized.
Global Growth in Neo-liberal politics
- Slowdown in productivity, the mix between free-markets and planned economies
- Rise of information technologies: capital could now flow around the world at unprecedented speeds
- Global production moving to lower economies
Rise of Neoliberal theory : emergence of thinktanks and academic credibility (Dardot & Laval, 2014) - Cultural shift towards individualism and demonisation of the working class
- Eventual Collapse of Soviet Union
- Restoration of Class power : policies now aimed at restoring wealth among upper classes
Neoliberalism and Social Change
Way we understand ourselves: ‘Neoliberal subjectivity’: all individuals, individually responsible for everything, including own lives and broader concerns. Individualise our own understanding of responsibility.
Many public services and public goods are sold to private companies as it is believed they will be better at managing them. Remaining public institutions must be organised around market principles
