Presentation on theme: "Neoliberal Revolution. What is neo-liberalism? Development agenda focused on switching economies towards free-markets with minimal role for the state."— Presentation transcript:
Development agenda focused on switching economies towards free-markets with minimal role for the state. 1) Trade liberalization 2) Reduce public spending 3)Privatization 4)De-regulation of economy 5)Foreign investment 6)Property rights and market-based interest rates 7) Capital market liberalization
Stag-flation in the west Critique of Keynesian economics: 1.Depression is not due to structural crises 2.Nanny state and problem of getting prices right 3.Development economists mis-diagnosed the problem 4.Development economics is intellectually corrupt 5.Developing economies are not special
Policies and reforms imposed on debtor nations in the form of cross-conditionality Three components of Econ Reform Programs 1)Economic liberalization 2) Macro-economic stabilization 3)Privatization Shock therapy in Russia
What are the problems with neoliberal policies according to Stiglitz?
Privatiztaion in context of monopoly State withdrawal without presence of market substitute Markets are not perfect esp in LDCs. Lack of adequate social safety net Timing and sequence (eg new jobs are not created over night after losses due to privatization).
Problem of corruption and how reforms are administered Trade liberalization has not served interests of LDCs( agriculture, maritime, construction) Does not acknowledge that development requires systemic transformation of society Overlooks important reforms (land reforms, financial market regulations, poverty alleviation) and over-emphasis on inflation