1. Neoliberalism & Development

2. What is Neoliberalism? Features of Neoliberalism:
Free-market system (Marketisation):
Individual Freedom – They are based on the principle of allowing individuals to be free to pursue their own self-interest – this is seen as the best way to pursue the maximum good in society.
They are efficient – businesses try to be efficient in order to maximise profit.
Innovation – Competition and the profit motive encourage people to produce new products to stimulate demand – we probably wouldn’t have had the iPad without Capitalism!
Economic Growth and jobs – The end result of leaving businesses free to do business is more wealth and more jobs.
Neoliberalism is the idea that less government interference in the free market is the central goal of politics. In our case, the less government involvement in development the better.
This theory is linked to the New Right.
Features of Neoliberalism:
Privatising state services
Lowering taxes
Reducing rules and regulations for business, workers, and the environment
Reducing state control

3. RECALL – SOLUTIONS FOR DEVELOPMENT
Modernisation
Dependency
CAPTIALISM, AID, EXPERTISE
ISOLATION or REVOLUTION
SPREAD OF MODERN WESTERN VALUES
ASSOCIATE DEVELOPMENT, ISI

4. Neoliberalism & Development
Critical of aid based solutions (Modernisation)
Belief in Free Trade (Economic approach)
‘Trade not Aid’
What documentaries did you watch over the summer that explored these themes?

5. Barriers to Development
The lack of investment by corporations
Lack of an entrepreneurial population
Economic mis-management
Corruption & Kleptocracy (made worse by Aid)
Communism
Economic Protectionism (All countries Rich & Poor)
Government interference in the market place distorts the balance of supply and demand. (E.g. the regular giving of aid upsets the price of goods and supply of labour)

6. Solutions for Development
Free market; global markets for all
Privatisation and driving up competition
Get out of government regulations
Less taxes
Promoting of free trade
Trade Liberalisation
SAPS
Structural Adjustment Plans (Adopted by World Bank & International Monetary Fund)
Aid money for Conditions
An agreement not to subsidise producers and to reduce import tariffs
Turning over provision of public services to the private sector
Focusing production on exports
Deregulation, or cutting red tape, to reduce labour and environmental laws and business taxes

7. Asian Tigers S_________________ T_________________ S _______K_________ H_________ K______
Case Study (Positive)

8. Case Study (Negative)
Bolivia – Privatisation of Water (Unaffordable for the poor)
Neoliberal economic policies have to be imposed on developing countries during crises (manufactured or natural) – countries don’t adopt them unless they are desperate to avoid bankruptcy

9. Evaluation
Positive
Negative
The private sector runs development projects more efficiently than local governments.
Hypocrisy: Developed countries did not develop using neoliberal strategies – they used economic protectionism and the slavery of the developing world.
Deregulation is good because it gets rid of expensive ‘red tape’ that development projects must follow.
Privatisation of public services results in a massive transfer of wealth from the majority to the rich.
Highlights the problems of giving aid
Seeking profit over environmental and social development
Asian Tigers are a good example of Neoliberalism working
Cutting taxes on the rich has results in greater inequality and lowers the standard of public services, especially for the poor.
Took on Dependency theories idea that economic protectionism was a barrier to development and came up with a solution to get rid of it.
Rich countries still use economic protectionism and subsidies (The World Trade Organisation is failing in trying to stop richer countries doing this.
Power is transferred from democratically elected representatives towards financial and business elites
Neoliberal Policies are forced upon societies that are in crisis – forcing their hand.
SAPs, conditions widen international class divisions, and can have cultural or political conditions, e.g. Aid for Military Bases.
Increasing economic capital of business / financial institutions makes them more powerful than democratically elected representatives – the end of democracy?

10. Essay Plan
Intro – Define Neoliberalism, put it into historical context in relation to modernisation and dependency theory, give reasons why it came about, and refer to organisations that put their beliefs into practice
P1 – Outline the fundamentals of Neoliberlaist ideas (Screencast), start to refer to some criticisms.
P2 – Outline the ideas and beliefs about development, discuss the impact of their ideas and mention some criticisms of them. (PowerPoint)
P3 – Discuss neoliberal case studies – Asian Tigers (Success) &Structural Adjustment Programmes (Negatives - ScreenCast)
P4 – Outline positive and negative evaluation from PowerPoint & Screencast. (Refer to Sociologists)
P5 – Discuss problems of Neoliberalism according to Naomi Klein (pick out two examples from your video notes), linking to issues of development.
P6 – Stretch Task (A grade students) Pick out economic criticisms from the ‘Neoliberalism as a Water Balloon’ and ‘Harvey – Crisis of Capitlaism’ videos on Youtube (see Lesson Plan).
P7 – Criticisms from other Development theories – what would Modernisation, Dependency, and World Systems theorists say about Neoliberal ideas? Are there similarities? Fundamental differences?
Conclusion – Pick out the main contribution from Neoliberals towards our understanding of development, and pick out the main criticism. Make a final point, related to the question.
Remember to answer the question and refer back to it – how does what you are saying relate to an understanding of development, underdevelopment and global inequality.
Try to interlink positive and negative evaluation throughout your essay.