The ideology of neoliberal globalization has been on a roll since the early 1980s. It was not in fact a new idea in the history of the modern world-system, although it claimed to be one. It was rather the very old idea that the governments of the world should get out of the way of large, efficient enterprises in their efforts to prevail in the world market. The first policy implication was that governments, all governments, should permit these corporations freely to cross every frontier with their goods and their capital. The second policy implication was that the governments, all governments, should renounce any role as owners themselves of these productive enterprises, privatizing whatever they own. And the third policy implication was that governments, all governments, should minimize, if not eliminate, any and all kinds of social welfare transfer payments to their populations. This old idea had always been cyclically in fashion.
In the 1980s, these ideas were proposed as a counterview to the equally old Keynesian and/or socialist views that had been prevailing in most countries around the world: that economies should be mixed (state plus private enterprises); that governments should protect their citizens from the depredations of foreign-owned quasi-monopolist corporations; and that governments should try to equalize life chances by transferring benefits to their less well-off residents (especially education, health, and lifetime guarantees of income levels), which required of course taxation of better-off residents and corporate enterprises.
The political balance is swinging back. Neoliberal globalization will be written about ten years from now as a cyclical swing in the history of the capitalist world-economy. The real question is not whether this phase is over but whether the swing back will be able, as in the past, to restore a state of relative equilibrium in the world-system. Or has too much damage been done? And are we now in for more violent chaos in the world-economy and therefore in the world-system as a whole.
Do you think Neoliberalism is effective?