As an economic and political program, neoliberalism promises that everyone will be able to gain from the benefits of globalization but in practice there is clearly great disparity. Discuss with the reference to the advantages and disadvantages of neoliberalism and globalization.IntroductionAccording to Klack (2000), neoliberalism and globalization are two common words used to mention the currently international trend of development in global scene. Globalization is now powerful at the worldwide level; however, this word is almost meaningless on its own (George 2007). George also indicates that neoliberlism is necessary to make the meaning of globalization is more clear. Basically, the purpose of this philosophy neoliberalism is to liberate the capital accumulation process. Many international organizations and governments in the world consider neoliberlism as a prominent political force which is needed to be counted in their development plan and it is a driving factors of international economic operation (Braedly & Luxton 2010). There is a point of view that, neoliberalism, as an economic and political program, will bring benefit of globalization to everyone, especially developing countries. In other words, over the time, neoliberal globalization the definition of globalizing process without being bounded by governments policies, contribute to decrease the level of inequality in the global context. Nevertheless, in another opinion of Lindio-McGovern and Wallimann (2009), neoliberal globalization is supposed to intensify not only domestic but also worldwide disparity. An example of the significant inequality is provided through this statistic: in 1995, 20% world population in richest nations has 82 times the income of the same amount poorest, but it was only 30 times in 1960. In fact, over thirty years in which globalization and neoliberalism had become more popular, the gap between developed and developing countries has been getting more serious. Thus, this report will discuss both concepts: globalization and neoliberlism in term of pros and cons of each and the connections between them in order to identify whether or not neoliberalism helps everyone able to gain from the benefits of globalization. Discussion of NeoliberalismNeoliberalism, in the explanation of Dean (2008), is a political and economic practice considers market exchange as a guide for all actions of human. By the accordance with economic expectation and criteria, the philosophy redefines ethical and social life proposes that human freedom can be best achieved through market operation. According to Harvey 2005 (p.22), neoliberalism is a theory indicating that human well-being is highly developed by liberating individual entrepreneurial freedoms and skills within an institutional framework characterize by strong private property rights, free market and free trade. The key role of state or government in neoliberalism concept is to create institutional framework suitable for the market, establish policies of rights and contract. In general, through neoliberalism, governments take part in operating market by producing conditions for and subjects of the market, protecting the market without interfere with the market.In reality, neoliberalism is revealed both advantageand disadvantage. Dean (2008, p.54) said: neoliberalism relies on the fantasy offree trade. Fridell (2012) also points out that according the theory ofneoliberalism, in the whole world, greatest social benefit can be gained fromlimiting governments interventions at international as well as national levelsand removing trade barriers. Besides free trade, other benefits ofneoliberalism shown Klack (2000) are less states intervention and greatermarket competition, privatisation to private investors and reducing public expenditure onand taxation. However, although neoliberalism is expected todecrease difference between developed and developing countries, but it evencreates a more serious situation (Klack 2000). In fact, because of a largerpolitical power and greater influence in international negotiation, richcountries gain more benefit of free trade than the poor. Therefore, environmentpollution, resources and labour exploitations are common issues due to bigcompanies, which mostly come from rich nations, use their right negatively indeveloping countries while they have just derestricted their regulation afterapplying free trade. Discussion of GlobalizationAccording to Ritzer (2011), globalization is the mostsignificant change in human history. It is a Trans planetary set of processesin which liquidity increases; multi-directional flows of information, people,places and objects grow; structures that people create and encounter. There isanother term closely related to and imply characteristics of globalization,it is transnationalism. Transnationalism is explained by Ritzer (2011) thatprocesses of interconnecting social groups or individual across particular geo-politicalboundaries. These two term globalization and transnationalism areinterchangeable but in fact, processes happens in transnationalism areclearly more delimited than ones in globalization. In globalization,interconnections between objects are not only to cross geo-political borders,but also a wider range of other trans-planetary processes. Globalization makesboundaries for goods, idea, music and even people transcended. Byglobalization, these factors are able to move freely with little limitations oftraditional barriers which used to separate places, language, people, cultureand currency (Torres 2008).Metz (2013) discusses advantages and disadvantage ofglobalization. Firstly, globalization narrows the traditional division betweenthe rich and the poor in the world. By removing barriers in term of tax, regulationsand so on, nations, especially developing countries can attract foreigninvestments which go along with modern technology and employment.Trans-national organizations investing in setting plants and applying newtechnology providing jobs and working condition in high standard for localpeople. In return, these companies can exploit raw material and labor at a lowcost. Furthermore, in a global and open market, products and natural resourcesare able to move across nations. Indeed, globalization always brings benefit tocustomers, they have chance to approach products from other countries. In thisworld widely intensive market, anyone can satisfy their demand with morecompetitive price than before.On the other hand, author Klack shows some disadvantageof globalization. According to Klack (2000), benefit of globalization areconcentrated in core countries while the lagging countries occupy the majorproportion of the world. In fact, at the begging of 90s, 50% of foreigninvestment flow from developed countries to developing ones went to China,Mexico and Argentina. In another period, a group of twelve lagging countriesachieve 89% of the whole worlds foreign investment and South Korea, Turkey,Portugal and Hungary are named in the list. Thus, there is other ways tointerpret the globalizations benefit, it benefit the highly selectivecountries which are already better than others. Moreover, even advantagesmention above are revealed the reverse sides. Cheap labor are exploited in developingcountries. There are cases that children and prisoners are detected working inheartless condition by oversea employers who deliberately ignore safetyrequirement to save manufacturing cost. Moreover, many internationalorganizations take advantage of legal loophole in developing countries to avoidpaying tax. Therefore, the rich become richer and poorer countries loose asignificant revenue of tax Metz (2013). Connection between globalization and neoliberalism the effectsWhile globalization refers to international andinterrelated trade as well as capital flow, core values of neoliberalism arefree trade, privatization, deregulation and globalization. Both terms goestogether embody a definition which is capitalism without borders (Klack2000). Globalization is also explainedthat it is a simply international trend of movement from social-democraticinterventions to market-oriented neoliberalism. In fact, there is evidenceproving that: although growth of neoliberalism and globalization lead to lowerbarriers of trade and as a result, investment flow goes to poor countries inwhich the competition is less and rate of return is expected to higher, but capitalmobility cannot narrow the gap between the rich and the poor. According toLindio-McGovern and Wallimann (2009), after globalization andneoliberalism, the disparity between nations even increases. In the nationalscale, the income of people in developing countries which occupies 75% ofpopulation is now distributed more unequally than it was in the 90th decade. Inthe global view, there is a statistic showing that lifetime income per capital in Melbourne today is over70 times of the income in developing countries while it was 11 times in lastcentury and 30 times in 4 decade ago. In our world, there currently is a halfof global population which is over 3 billion have less than 2 dollars per dayto survive, 1 in 7 children cannot go to school, over 1 billion people cannotapproach safe water and nearly 1 billion being malnourished. Whereas, propertykeeping going to richer countries. However, in developed countries as The U.S,the inequality between classes also happen. Because of the inflation, real wageof high-school educated workers decreases and price level increases. Over therecent 30 years, top 20 percent of American household achieve the majority ofincome growth in the countries and a huge amount within this income benefitstop 1 percent of the population. In New Zealand and the United Kingdom, thesimilar disparity is also recorded (Lindio-McGovern & Wallimann 2009).ConclusionAlthough neoliberalism and globalism are well-knowneconomic term in recent discussion, there is mixed opinions about their effecton the global situation. There is an idea that benefits of globalization toeveryone are same by neoliberalism in which all countries have an equal tocountries approach capital flow and economic improvement. However the reality hasproved the opposite, some companies from the richer world are recognized takeadvantage of lower barriers and their power over others to exploit naturalresource and labor in developing countries with a little performance of dutyand responsibility to the local. Environment pollution, low working conditionand tax evasion are common issue of neoliberalism and globalism indicated inrecent reports. ReferencesBraedly, S & Luxton, M 2010, Neoliberalism, McGill-Queens Press MQUP Dean, J 2008, Enjoying neoliberalism Cultural Politics, vol.4, no.1, pp.47-72.Fridell, G 2012, Free trade and fair trade in Haslam, P., Schafer, J., Beaudet, P. (2012) ed. Introduction to International Development: Approaches, Actors and Issues. (2nd ed) Oxford: Oxford University Press: 279-294.George, S 2007, Down the great financial drain: how debt and the Washington Consensus destroy development and create poverty, Development, vol. 50, no. 2, pp. 4-11.Harvey, D 2005, A Brief History of Neoliberalism, Oxford University Press, Oxford, England. Lindio-McGovern, L & Wallimann, I 2009, Globalization and Third World Women: Exploitation, Coping and Resistance, Ashgate Publishing, Ltd., Aldershot, United Kingdom Klack, T 2000, Globalization and Neoliberalism: The Caribbean Contex, Rowman & Littlefield Publishers, Maryland, The United State.Metz, F 2013, Globalization. Advantages and Disadvantages, GRIN Verlag, München. Ritzer, G 2011, Globalization: The Essentials, John Wiley & Sons, The United State.Torres, C 2008, Education and Neoliberal Globalization, Routledge Research in Education, Routledge Get Help With Your AssignmentIf you need assistance with writing your assignment, our professional assignment writing service is here to help!Find out more
