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NEOLIBERALISM/GLOBALIZATION
Introduction
A change is as good as a rest, but when it comes to neoliberalism and globalization, we
cannot be sure if it is equally good. Neoliberalism has been attributed to positive and negative
developments in the modern world where negativity seems to weigh on it more. Think of
structural unemployment. It has a baggage of problem that comes with it. Nevertheless one
cannot ignore the positivity that has made the world better but true to the statement, “something
bad will trigger your mind more than a good one.” This paper will discuss the impact of
neoliberalism in both ways comparing it to several states to show if there is any difference.
Neoliberal revolution in 1970 led to the privatization of State Owned Enterprises
(Gerring, John, and Strom, 245). SOEs are companies partly or fully controlled by the state. This
move was a total mess due to the constraints it has on other people to conduct their businesses. It
affected the pricing of items and competition. There was no point of relying on market
mechanisms. This made several businesses shift from businesses or remain redundant without
accomplishing the intended goal of making profits in an environment that competes in a healthy
way. A lot of corruption has also been rampant with so much power given to these companies.
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With the government owning many firms it posed threat to private individuals who are scared of
the corrupt system of the government which ensures that it has its way and say in everything.
This move of privatization has affected all states in the world making businesses lack a perfect
meaning. Further, it has led to a huge gap in the big firms and small firms. For instance, the
Thatcher’s government abandoned the neoliberal ideology but sticking to the policies of
privatization which contributed to economic difficulties that were experienced worldwide in the
70s (Gerring, John, and Strom, 245). This consequently led to the rise of government expenditure
which really proved a burden to the citizens. This continued for a long time until the Reagan
government came into action and embraced the neoliberal doctrine, laissez-faire, and anti-
government themes. This pushed for a reduction in taxes, retraining of bureaucrats and
embracing the entrepreneurial spirit. Privatization later became a political strategy that later
