Date: Fri, 2 Jan 1998 20:17:51 PST
Subject: M-G: jah-AT-iww.org: Definition of "Neoliberalism"
From: rphelan1-AT-juno.com (Roger C Phelan)



R.C.Phelan
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From: jah-AT-iww.org
To: Recipients of conference <iww-news-AT-igc.apc.org>
Subject: Definition of "Neoliberalism"
Date: 02 Jan 1998 08:19:07
Message-ID: <199801021622.IAA02158-AT-fletcher.iww.org>

 From The Human Rights Information Network 
--------------------------------------------------------------------- 
NNIRR, Winter, 1997

A Brief Definition for Organizers and Activists: What is Neo-Liberalism? 
        By Elizabeth Martinez and Arnoldo Garcia

"Neo-liberalism" is a set of economic policies that have become 
widespread during the last 25 years or so. Although the word is rarely 
heard in the United States, you can clearly see the effects of 
neo-liberalism here as the rich grow richer and the poor grow poorer.

"Liberalism" can refer to political, economic, or even religious ideas. 
In the U.S., political liberalism has been a strategy to prevent social 
conflict. It is presented to poor and working people as progressive 
compared to conservative or Rightwing. Economic liberalism is different. 
Conservative politicians who say they hate "liberals" -- meaning the 
political type -- have no real problem with economic liberalism, 
including neo-liberalism.

A memorable definition of neo-liberalism came from Subcomandante Marcos 
at the Zapatista-sponsored "Inter-continental Encounter for Humanity and 
Against Neo-liberalism" of August 1996 in Chiapas when he said: "what the

Right offers is to turn the world into one big mall where they can buy 
Indians here, women there ...." and, he might have added, children, 
immigrants, workers or even a whole country like Mexico. The main points 
of neo-liberalism are outlined below:

THE RULE OF THE MARKET. This entails liberating the"free" enterprise or 
private enterprise from any bonds imposed by the government (the state) 
no matter how much social damage this causes; greater openness to 
international trade and investment (as in NAFTA); and strategies to 
reduce wages by de-unionizing workers and eliminating workers' rights 
that had been won over many years of struggle.

NO MORE PRICE CONTROLS. All in all, total freedom of movement for 
capital, goods and services. To convince us this is good for us, they say

"an unregulated market is the best way to increase economic growth, which

will ultimately benefit everyone." It's like Reagan's "supply-side" and 
"trickle-down" economics -- but somehow the wealth didn't trickle down 
very much.

CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES. These include education 
and health care, reducing the safety net for the poor, and even 
maintenance of roads,bridges, water supply -- again in the name of 
reducing government's role. Of course, they don't oppose government 
subsidies and tax benefits for business.

DEREGULATION. This means reducing government regulation of everything 
that could diminsh profits, including protecting the environment and 
safety on the job.

PRIVATIZATION. This entails selling state-owned enterprises, goods and 
services to private investors, including 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.

ELIMINATING THE CONCEPT OF THE "PUBLIC GOOD." This concept has been 
replaced with "individual responsibility." Pressuring the poorest people 
in a society to find solutions to their lack of health care, education 
and social security all by themselves -- then blaming them, if they fail,

as "lazy."

Around the world, neo-liberalism has been imposed by powerful financial 
institutions like the International Monetary Fund (IMF), the World Bank 
and the Inter-American Development Bank. It is raging all over Latin
America.

The first clear example of neo-liberalism at work came in Chile (thanks 
to University of Chicago economist Milton Friedman), after the 
CIA-supported coup against the popularly elected Allende regime in 1973.

Other countries followed, with some of the worst effects in Mexico where 
wages declined 40 to 50% in the first year of NAFTA while the cost of 
living rose by 80%. Over 20,000 small and medium businesses have failed 
and more than 1,000 state-owned enterprises have been privatized in 
Mexico. As one scholar said, "Neo-liberalism means the neo-colonization 
of Latin America."

In the United States neo-liberalism is destroying welfare programs, 
attacking the rights of labor (including all immigrant workers), and 
cutting social programs. The Republican "Contract" on America is pure 
neo-liberalism. Its supporters are working hard to deny protection to 
children, youth, women, the planet itself -- and trying to trick us into 
acceptance by saying this will "get government off my back." The 
beneficiaries of neo-liberalism are a minority of the world's people. For

the vast majority it brings even more suffering than before.

(Elizabeth Martinez is a civil rights activist and author of many works, 
including "500 Years of Chicano History."Arnoldo Garcia, a cultural 
worker and activist, is the development director of the Urban Habitat 
Program.)


/* Written 8:59 AM  Apr 12, 1997 by DEBRA-AT-OLN.comlink.apc.org in 
hrnet.americas */

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