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Neoliberalism Essay

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Neoliberalism calls for the privatization and deregulation of the economy, a reduction of expenditures, societal contracts that encourage leadership, and both production and trade. Such policies seek to shift economic power from the state to independent sources.The need for the United States to produce wealth and sustain a stable economy for its own benefit has led it to influence Latin American governments to implement neoliberal policies. According to Paul Drake and Lars Scholtz, neoliberalism has become implemented and dominant throughout Latin America through hegemony, Latin America’s economy, and. the promotion of neoliberalism by various sources. The implementation of neoliberal policies encompassed both negative and positive traits in…show more content…
Latin American countries that were in debt and were in dire need of revenue and trade, implemented neoliberalism(Drake 35). These countries saw neoliberalism as a gateway to economic success because they observed the effects it was having on the United States. Furthermore, the acceptance and implementation of the United States’s neoliberal plan in Latin America was once again caused by the assumption that Latin America stability and wealth was assured(Drake 27). Such governments were willing to implement neoliberal changes because their countries were searching for a source of economic relief. Aside from economic relief, the implementation of neoliberalism was also caused by globalization which became predominant in the 1990’s. In order to become implemented into the global economy, countries had to join the global market (Drake 36). Latin American countries saw the United States as a hegemonic country in which they could trust with economic relations because the U.S. was the center of wealth and…show more content…
Transmitters of neoliberalism included the “World Bank, International Monetary Fund, and the Inter American Development Bank” (Drake 41). The purpose of international systems’ advocating the implementation of neoliberalism is to convince Latin American countries that such policies will be implemented internationally. It is assumed that financial systems such as banks know what is best for the economy because they handle financial matters; therefore, having them promote neoliberalism evokes a sense of trust. Neoliberalism was also promoted by business leaders from Latin america and the United states. Such business leaders then convinced foreign investors and financiers to “also spread the gospel of neoliberalism”(Drake 43). Wealthy business leaders saw neoliberalism as something that was synonymous with christianity; neoliberalism was able to liberalize and rescue countries who were not as powerful as the United
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