Is Neoliberalism in Crisis Today Term Paper Example | Topics and Well Written Essays - 3000 words

Is Neoliberalism in Crisis Today - Term Paper Example In the last months of the year 2008, following the financial crisis, people readily accepted that it was the demise of neoliberalism, and thus whether it was a total end of neoliberalism and would it lead to the emergence of new political and economic policies, and what form they would take were the crucial questions which require deliberate attention and time (Brand and Sekler, 2009, 5 – 8). The rise of neoliberalism came about as a result of the deep revolutionary changes in the global economy in the 1970s, it was, however, a passive and tacit revolution which strengthened the capitalist system by the means of complete transformation of the social, political and the economic system of the countries of the world from the ‘above’- which was the dominant political and social forces. The major aspect of the new concept was the liberalization of the market along with the deregulation of the political system. The system was a success initially and triumphed by encompa ssing the national economies of numerous nations across the globe. In the 1970s, the Keynesian approach in the post World War 2 era crumbled and marked the epoch of Neoliberalism (Altvater, 2009, 73). The end of the Bretton Woods system of fixed exchange rates in March 1973 and the liberalization of the financial markets under the governance of Margaret Thatcher in Great Britain was the beginning of neoliberalism. The decisions regarding the formation of the critical prices, such as the exchange rates around the world, and the interest rates charged on borrowing and saving, and therefore the regulatory policies were no longer regulated or officially controlled. Instead, these decisions were left at the disposal of the private sector, such as multinational banks, speculative investment and other funds and also the transnational corporations. The wave of privatization of the public services and goods began, and the newly formed private sectors set off to create financial innovations, forming new instruments to increase gains.