Neoliberalism: The Globalisation of American Capitalism and its consequences
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The International Order: Reflections of American Power.
uFormation of Post-War Global Economic Order forged in the Image of the United States, as the sole
existing superpower
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uIMF and World Bank set up to give extra voting power to the US (and Western Allies). Essentially
granted control to the US and Western Allies allowing them to forge the global economic order.
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uWTO also created under the auspices of ‘Free, Unfettered Trade’ which was specifically to advance
the aims of the emergence capitalist hegemon

Western Dominance in Security Institutions.
uUN Security Council- 5 permanent members with ‘Vetos’ on UN military action. This was insisted
upon by the US so that no interventions could be made without it. 3 of the 5 Veto Wielding members
are Western States (UK, France, US), and Russia and China. uSecurity Council has in many ways
operated as an arm of US power. Due to the US’s overwhelming military might, not interventions have
been possible without its agreement. uInterventions have been made specifically to protect US
interests even with small casualties: Haiti: While Rwanda was ignored.

What is Neoliberalism?
uNeoliberalism is an Ideology that seeks to transfer the control of economic factors from the
public sphere to the private sphere. Seeks to do this not just nationally, but globally through
removing government controls and protections on trade across borders, in a one-size fits all
approach to economic governance.
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uIn particular this entails the removal of State Aid from local businesses and the removal of
tariffs and other protections to local industry- States cannot prop up ‘uncompetitve’ businesses’
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uSeeks to limit state interference in the private sector: Deregulation, moving state functions and
public sectors into the private sector.
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uExamples might include the provision of public health, or energy, by private companies
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History of Neoliberalism
uNeoliberalism emerged as a dominant philosophy in the 1970’s and 1980’s and replaced the
previously dominant philosophy of ‘Keynesianism which accepted capitalism but with state
intervention to protect human, economic, and social rights.
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u‘Known as the ‘Reagan-Thatcher Consensus, as it was strongly pushed by both these conservative
leaders..
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uPhilosophy broadly maintained under Presidents Clinton and Blair with increasing deregulation and
promotion of global neoliberalism.
uBased on ‘trickle down’economics that overall wealth generated at the top would eventually reach
the poorer people- this did not happen.

Multinational Corporations and Neoliberalism.
uMain beneficiaries (and promoters) of Neoliberalism were multinational corporations.
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uMultinational Corporations benefited from Neoliberalism in two key ways. uFirstly, the removal of
tariffs and protection from local industries open up enormous new markets for MNC’s uSecondly, the
Removal of Barriers allows MNC’s to scour the world looking for where goods can be produced at the
lowest cost.

Impact on the UK and US.
uTransfer of manufacturing from developed to developing countries has created huge pockets of
depression, particularly in the US ‘Rust Belt’. Once thriving communities where one manufacturing
job could support a family have been ‘decimated’. Contributed to the Rise of Trump.
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uSimilar but lesser effect in the UK’s ‘Northern Heartlands’, where steel and other key industries
have been destroyed.
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uLeft Developed countries increasingly reliant on Services, leading to substantial portions of the
population disenfranchised and economically and emotionally depressed.

Global Neoliberalism 1: The IMF and ‘Structural Adjustment’.
uLatin American Countries in Huge Debts were forced to go to the International Monetary Fund as the
‘lender of last resort’
uNeoliberal powers in the IMF saw the debt crisis as an opportunity reshape the economies of Latin
America by opening them up to FDI and unregulated trade.
uAs a result loans were made under conditions of ‘structural’ adjustment’ which forced latin
American economies to open up their economies to FDI, remove protections for vulnerable industries,
and allow the Free Market to dictate their economies.
u‘One Size Fits all’ Policy did not work. It lead to huge destruction of ordinary jobs as
protections ripped away from local industries that could not compete with vast MNC’s. End Result of
this process was an 11% drop in GDP and tens of millions of manufacturing and other manual workers
below the poverty line. Only beneficiaries- MNC’s with new market.

THE WTO AND ‘FREE TRADE’
uWTO seeks to ensure that trade is as ‘free’ as possible, breaking down tariff barriers and other
non-tariff protections in international trade ‘level playing field’ for corporations.
uHowever, WTO ‘Curiously reluctant to produce comprehensive studies of the overall impact of its
policies on employment, wage growth or labour conditions’- Dillon
uCauses race to the bottom in terms of wage levels in developing countries, destroying previous
secure jobs protected by governments or tariffs and thrusting these workers into environments where
they cannot compete with gigantic Western corporations.
uCollapse in Coffee prices caused by WTO policy drove rural unemployment up 40% in Guatemala and
forced 300,000 Mexican coffee farmers to migrate
uWhile ‘Overall Wealth’ has gone up in some countries, this has been heavily concentrated in the
elite in developing countries, resembling something of a Global Bourgeois.

Neoliberalism, Inequality, and ‘Fair Trade’
u‘Free Trade’ tends to benefit the richest (in all countries), often widening the gap between the
rich and poor. Overall ‘economic growth’ does not filter down to poorer people-in developing or
developed countries.
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uGlobal Economic Order historically heavily dominated by US and Multinational Corporations.
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uLed again to the ‘dehumanization’ of blue-collar and poorer labourers who are seen as units of
production of ‘economic growth’ rather than taking care of welfare, job security, etc.
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NAFTA, Neoliberalism and Femicides in Ciudad Juarez
uNAFTA (North American Free Trade Association) a ‘Cornerstone’ of Global Neoliberal Order. Premised
in Three Key Neoliberal Tenets dictated by the US, the Dominant Partner.
uNo Tarriffs or External Protections for Industry
u‘Most Favoured Nation’ Principle means no two countries can be treated differently and Government
contracts must be offered to all three countries equally.
uPatents must apply universally all three countries.
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uOVERALL PURPOSE: TO ALLOW CORPORATIONS MAXIMAL ACCESS TO EACH OTHERS MARKETS.
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MAQUILADORAS AND FEMICIDES.
u‘Ejido’ System of communal land ownership not ‘compatible’ with NAFTA agreement, meaning many lost
farms and homes uNAFTA offered ‘Maquiladoras’- Huge, foreign owned factories that sold the products
back to the host countries as a profit, as alternative employment in tariff free zones, Employing
Mass Labour of mainly female workers. uMainly female workers exploited, sexually abused, and made
to work inhumane conditions that would not be acceptable on the other side of the border for
profit. Allows corporations to ignore  Labour rights in search of profit

NEOLIBERALISM AND FEMICIDES
uThese workers often have deeply unsafe journeys to reach the Maquiladoras, and are routinely
raped, murdered, and tortured by violent misogynists while  travelling at night in dangerous parts
of Ciudad Juarez.
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uThese deaths are overlooked by both the huge multinational corporations, local authorities, and
politicians.
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uIn the neoliberal world, these womens lives and livelihoods are expendable and meaingingless in
the search for bigger profits and cheaper produce.
uBeneficiaries wealthy, white people on the other side of the border. The women are sacrificed for
cheaper prices for American consumers and bigger profits for multinationals.

WHAT DO ‘WE’ OWE ‘THEM’? Discussion questions
uDo we have an equal moral obligation to those from other countries as we do to our own citizens.
If not, why not?
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uIf we consume products created in conditions that we would not accept for our own citizens, to
what extent are ‘we’ responsible for the exploitation that occurs under a neoliberal system? (Can
also relate this to the consumption of meat).
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