Realizing Development Objectives: Neoliberalism Requirements Research Paper

Exclusively available on Available only on IvyPanda®
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment

Neoliberalism refers to the ways in which countries attempt to control economic factors by shifting the public sector to become a private sector.

The term neoliberalism bases its concepts on neoclassical economists who argue that in order for a country to realize development, its government should reduce deficit financing of projects, limit subsidies, remove fixed exchange rate, broaden the tax base, limit protectionism by opening up its markets, privatize the businesses that are run by the state, support deregulation, and allow people to have private property (Larner, 2012).

Neoliberalism therefore attempts to remove all barriers and restrictions to development in order to create an atmosphere that is suitable for economic development.

This paper will therefore analyze the requirements of neo-liberalism and the manner in which it assists realizing development objectives.

Neoliberalism seeks to transfer the control of nations from the public to the private sector (The Economist, 2012). To achieve this, nations are supposed to abide by certain requirements.

To begin with, it is observed that many nations especially the developing ones finance their development goals by borrowing. The funds that these nations borrow carry very heavy interest rates such that the countries invest a lot of state resources to enable them repay funds.

Under neoliberalism, nations are required to avoid large deficits that would have to be paid by future citizens (Wade, 2012). Governments should therefore minimize deficits as much as possible because deficits result to high rates of inflation thereby bringing down the productivity of a country.

In order to minimize wastage of public funds, public spending should be redirected from subsidies and other forms of spending that are deemed wasteful by the neoliberals.

Public spending needs to be based on provision of services that are important to the growth of an economy such as primary health care, education, and development of infrastructure.

Tax reform also plays an important role in driving a nation towards development (Dressler, 2012). Governments should therefore broaden their tax bases and moderate their tax rates in order to encourage efficiency and innovation.

Interest rates are very important in influencing the level of investment in a country (Abboud , 2012). They determine whether people should consume, save or invest their money.

In order to ensure that the economy realizes relevant development, governments need to ensure that the interest rates in the country are determined by the market. Fluctuating exchange rates are also important in encouraging other nations to participate in the foreign exchange markets (Buttonwood, 2012).

Trade liberalization helps in removing quantitative restrictions thereby encouraging competition in the long run. The products produced within countries are therefore of high quality in order for them to remain competitive with other quality products that are produced by other countries (Abboud , 2012).

Governments also need to remove the regulations that limit entry of other firms into the market and only limit regulations to those that are focused on safety, consumer protection, and the environment.

Neoliberalism is however different from modernization. This is because modernization looks at the internal factors present within a country that influence its development objectives.

It looks at the manner in which social variables contribute to the development of a country (Mowbray, 2012). Modernization therefore differs from neoliberalism in that it focuses on the internal factors influencing the development of a country whereas neoliberalism is global in nature.

Reference List

Abboud , S 2012, Failures and Successes of Neoliberal Economic Policy in Iraq, International Journal of Contemporary Iraqi Studies, vol 3 no. 1, pp. 45-60.

Buttonwood, C 2012, . Web.

Dressler, W 2012, The Good, the Bad, and the Contradictory: Neoliberal Conservation Governance in Rural Southeast Asia, World Development, vol. 35, no. 9, pp. 851-862.

Larner, W 2012, Neoliberalism, Third World Quarterly, vol. 12, no. 4, pp. 374-378.

Mowbray, M 2012, . Web.

The Economist 2012, . Web.

Wade, H R 2012, Is Globalization Reducing Poverty and Inequality? World Development, vol. 32, no. 4, pp. 567-589.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, April 2). Realizing Development Objectives: Neoliberalism Requirements. https://ivypanda.com/essays/neoliberalism-2/

Work Cited

"Realizing Development Objectives: Neoliberalism Requirements." IvyPanda, 2 Apr. 2019, ivypanda.com/essays/neoliberalism-2/.

References

IvyPanda. (2019) 'Realizing Development Objectives: Neoliberalism Requirements'. 2 April.

References

IvyPanda. 2019. "Realizing Development Objectives: Neoliberalism Requirements." April 2, 2019. https://ivypanda.com/essays/neoliberalism-2/.

1. IvyPanda. "Realizing Development Objectives: Neoliberalism Requirements." April 2, 2019. https://ivypanda.com/essays/neoliberalism-2/.


Bibliography


IvyPanda. "Realizing Development Objectives: Neoliberalism Requirements." April 2, 2019. https://ivypanda.com/essays/neoliberalism-2/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1