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CHANG AND MILANOVIC: NEO-LIBERAL FUNDAMENTALISM

Satisfactory Essays
Neo-liberal fundamentalism is defined as the maximization of economic growth of developed nations by means of the replacement of national stat directed development strategy with maximal openness of national economy to international markets and domestic free market conservatism. In order to construct a critique of “new-liberal fundamentalism,” both of the works by H. Chang and B. Milanovic will be analyzed. Chang’s paper presents a number of perspectives that clearly illustrate the negative aspects of this idealistic market. Now-developed countries (NDC) benefit through the use of such a market because it also forces developing countries to lower their own tariffs and allow for foreign investment. As such, the market is opened up given NDCs more access to cheaper goods and further strengthen their own economy. The real question here is whether or not neo-liberal fundamentalism actually produces a negative outcome for developing countries. Chang analyzes this question in his article, “Kicking Away the Ladder.” He questions why NDCs that control development policy do not recommend policies that have been used over the last several centuries that allowed NDCs to become developed themselves? In all, Chang is questioning whether NDCs are trying to “kick away the ladder?” Through his analysis, Chang concludes that this is in fact what is happening through the use of a new-liberal fundamentalist system. Although it might be true that some NDC policy makers believe that a Laissez-faire system was what their country used to develop; however, no matter what intention lies behind the “ladder kicking,” the fact remains that the economic growth that were promised through the implementation of policies by the IDPE and the NDCs that control it ha... ... middle of paper ... ...policies were constructed for the purpose of preventing growth of third world countries. However, although neo-liberal fundamentalism is clearly presented negatively as a way for NDCs to open their markets to cheaper goods, it is also important to comprehend that there might also be some importance to enforce a global scale of economic dominance by western nations. Evidence suggests that global resources would be unable to handle the 5 billion people living in a state of relative poverty to be upgraded to a US standard of living. The earth would effectively be drained of its resources by the end of the century. Therefore, although it is clear that neo-liberal fundamentalism was construed by NDCs to maximize their own markets, it has effectively prevented the growth of developing countries, which was what NDCs suggested was their goal of implementing these policies.
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