Neo Liberalism

1568 Words Sep 13th, 2011 7 Pages
Neoliberalism is the ability to globally trade, prosper and develop fairly and equitably among other countries. Neoliberalism policies allow for countries to import/export goods and services, trade and settle debts among countries. “Neoliberalism policies stress privatization, export production, direct foreign investment, and few restrictions on imports” (Rowntree, Lewis, Price, & Wyckoff, 2008). There are several Latin American countries who are accepting the neoliberalism ideology; however, there are some countries like Peru and Bolivia who are not embracing the neoliberalism philosophy. “Recent protests in Peru and Bolivia reflect the popular anger against trade policies that seem to benefit only the elite” (Rowntree, Lewis, Price, & …show more content…
For neoliberals, liberty is best preserved by a minimal state and economic utility best secured through free markets” ("Neoliberalism Deregulation,").The concept of deregulation is not meant to eliminate government from fraud, but rather reducing government control in the business, thus allowing more of a free market.
Privatization is the idea that the government should transfer all government operated industries to the private sector. These government owned businesses include, but are not limited to, banks, schools and hospitals. “Sell state-owned enterprises, goods and services to private investors. This includes banks, key industries, railroads, toll highways, electricity, schools, hospitals and even fresh water. Although usually done in the name of greater efficiency, which is often needed, privatization has mainly had the effect of concentrating wealth even more in a few hands and making the public pay even more for its needs” (Garcia, & Martinez). One may argue that privatization is ineffective because it only benefit the ones who can afford to purchase these government entities. However, according to The Latin American and Caribbean Research Network Project, authors Alberto Chong and Florencio Lopez-De-Silanes discuss the benefits of privatization. “Overall, the empirical record shows that privatization leads not only to higher profitability, but also to large
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