Neoliberalism - Sarah Seeliger

Neoliberalism 

The theory I chose to look at was neoliberalism. This theory replaced the dependency theory in the 1980s, and it became the dominant global economic policy. Neoliberalism states that a free market is the most efficient and fairest way to foster economic development and growth. It also states that interference from the government almost always has negative consequences on development in the long run. The reason for the consequences according to neoliberalism is that government interference can lead to sudden economic growth that doesn't last, and officials are able to take money for themselves illegally. Neoliberalism wants to encourage free enterprise by intervening in the economy as little as possible because little intervention leads to healthy competition, and that leads to sustainable long-term development. There are some criticisms of neoliberalism. One of the criticisms is that neoliberalism removed the state from the development process. The cost of reducing government services would turn into the responsibility of private groups like charities and NGOs.

An example of when neoliberalism occurred in history is in the 1970s in Chile under the military dictatorship of General Pinochet. Pinochet adopted free-market policies, and his contributions to the advancements of neoliberalism are huge. Pinochet's free-market policies included privatization, deregulation, and reduced government intervention in pensions, health, and education. The Chilean president before Pinochet had caused many problems for the government, including massive inflation, food shortages, and lots of strikes. After this president's death, Pinochet took his place and enacted governmental changes written by a group of conservative Chilean economists. These changes reduced inflation and renewed international trade in Chile.

Article links: https://www.economicshelp.org/blog/20688/concepts/neoliberalism/
                        https://theconversation.com/world-politics-explainer-pinochets-chile-100659

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