The Effects Of Neoliberalism Ideology

This paper explores the effects of neoliberalism ideology with the help of globalization on the growth and dominance of multinational and transnational corporations over governments. The case of nike etc in what country In particular, the discussion on multinational and transnational corporations that are growing in power and becoming more powerful that the governments.

Neoliberalism is a philosophy which views market exchange as a guide for all human action. Neoliberalism tries to redefine social and ethical life in accordance with economic criteria and expectations. Neoliberalism believes that human freedom is best acquired through the operation of markets (JODI DEAN). Neoliberalism holds dear the view of supporting foreign direct

In the recent years, neoliberals have gradually gain support from financial and political elites. Friedrich von Hayek received a Nobel Prize in Economics in 1974. Furthermore, Milton Friedman, a key member of von Hayek’s group won the prize as well (Jodi dean). It is known that here is a shift in microeconomic thinking and actual policy from World War II and the late 1970s, and the late 1970s to the present time. This shift is regarded as a movement from the Keynesian-Fordist policies to free-market policies (Harvey 2005). It is fundamental to know that this shift is ideological and this ideology of free market capitalism is the main cause and force behind globalization. Correlate with the shift from the golden age of capitalism to the neoliberal era is the elections of Margaret Thatcher in the United Kingdom in 1979 and Ronald Reagan in the United States in 1980. Followed by the fall of Soviet Union, Europe’s political and economic changes, and the fall of the Berlin Wall, neoliberal ideology managed to dominate economic policy (Jodi

By 2004, all of Nike’s products were manufactured by 830 suppliers. Nike in total employs over 600,000 workers all over 51 countries. However, Nike’s direct employees totaled to only 24,291 people, with majority working in its home country, United States (Nike, 2005, 3-4). Nike has been criticized in regards to underpaying workers in Indonesia and China, child labor in Pakistan, sexual abuse in Vietnam, and particularly the poor working conditions in Mexico (Locke 2010).

In the beginning, Nike felt no responsibility towards these problems found in their suppliers’ plants, as workers at these factories were not Nike direct employees. However in 1992, Nike’s hands-off approach changed as the Code of Conduct was formed. It is composed for Nike’s suppliers and requires them to manage some environmental issues, basic labor, and health and safety standards. However, even though all the factories seem to comply with Nike’s code of conduct, the reality is that poor working conditions and abused labor rights still exist (Locke