We'll discuss the concept of Neo-Liberalism and its impact on developing countries.
Evolution of Neo-Liberalism
Neo-Liberalism is an economic policy adopted by the Developed Countries to improve their profits and to spread their influence throughout world.
Neo-Liberalization is the thing that is related to the beneficiary of the corporate sector. It came into existence after the second-world war. World economic institutions like WTO, World Bank and IMF being influenced by the corporate regime of mostly developed countries injected this policy into their organization. We know the fact that the developing countries depend on these organizations for economical assistance to meet their county needs because of the lack of sufficient economic inflow in their country. So, what these economic institutions does is that make compulsion of these regulations in order to provide any assistance in the development of the third world countries.
What is Neo-Liberalism?
"Neo" means the new and the "Liberalism" term means reforms and these reforms are mostly economical and these economical reforms in turn effect the political system. I'll discuss this shortly. Liberalization means the capitalist regime and privatization of all available resources that are under government sphere. This include removing the barriers to make the trading system free. This system removes the gap between the nations and there will be free import and export of the resources in these nations. The main motto of this policy is to earn more and more profits and this profits limits only to the industries that are leading the corporate sector.
How Neo-Liberalization effects the developing nations?
As the Neo-Liberalization fills the gap between the nations in trading and the foreign nations establish their industries in the developing countries. While there exist a vast unemployment in these poor and developing nations, the people here will be ready to do or accept the job even under non-safety conditions. Even for low pays they are ready to work. So this attracts the foreign nations to establish their units here. This creates an assumption that the policy will improve employment rate and will benefit the country. What actually the process is the industries employ the workers for low salaries and make these people work for more hours and earn profits.
And due to the flow of these foreign resources, the domestic and small scale industries are prone to losses as they can't compete with the giant industries and thus leads to the shutting down.
How does Neo-Liberalism in turn effect the political system?
As the governments of the developing nations depend on the economic support of the World institutions, they are restricted to demolish certain regulations which bars the foreign institutions to trade their resources freely.
So the government deregulates the policies framed to protect the national institutions from the extraneous forces. This in turn effects the economic growth of the country.
Neo-Liberalism is introduced to introduce the competitive environment in the country but this in turn lead to the ruining of the country's development. So, this policy is opposed by many countries and still many countries are protesting for the abolition of this policy.
Evolution of Neo-Liberalism
Neo-Liberalism is an economic policy adopted by the Developed Countries to improve their profits and to spread their influence throughout world.
Neo-Liberalization is the thing that is related to the beneficiary of the corporate sector. It came into existence after the second-world war. World economic institutions like WTO, World Bank and IMF being influenced by the corporate regime of mostly developed countries injected this policy into their organization. We know the fact that the developing countries depend on these organizations for economical assistance to meet their county needs because of the lack of sufficient economic inflow in their country. So, what these economic institutions does is that make compulsion of these regulations in order to provide any assistance in the development of the third world countries.
What is Neo-Liberalism?
"Neo" means the new and the "Liberalism" term means reforms and these reforms are mostly economical and these economical reforms in turn effect the political system. I'll discuss this shortly. Liberalization means the capitalist regime and privatization of all available resources that are under government sphere. This include removing the barriers to make the trading system free. This system removes the gap between the nations and there will be free import and export of the resources in these nations. The main motto of this policy is to earn more and more profits and this profits limits only to the industries that are leading the corporate sector.
How Neo-Liberalization effects the developing nations?
As the Neo-Liberalization fills the gap between the nations in trading and the foreign nations establish their industries in the developing countries. While there exist a vast unemployment in these poor and developing nations, the people here will be ready to do or accept the job even under non-safety conditions. Even for low pays they are ready to work. So this attracts the foreign nations to establish their units here. This creates an assumption that the policy will improve employment rate and will benefit the country. What actually the process is the industries employ the workers for low salaries and make these people work for more hours and earn profits.
And due to the flow of these foreign resources, the domestic and small scale industries are prone to losses as they can't compete with the giant industries and thus leads to the shutting down.
How does Neo-Liberalism in turn effect the political system?
As the governments of the developing nations depend on the economic support of the World institutions, they are restricted to demolish certain regulations which bars the foreign institutions to trade their resources freely.
So the government deregulates the policies framed to protect the national institutions from the extraneous forces. This in turn effects the economic growth of the country.
Neo-Liberalism is introduced to introduce the competitive environment in the country but this in turn lead to the ruining of the country's development. So, this policy is opposed by many countries and still many countries are protesting for the abolition of this policy.
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