Assessment 2 Essay Question
Neo-liberalism is a political and economic ideology which emerged in the 1970s and is considered as a cornerstone of modern capitalism. In post-apartheid South Africa, neoliberalism has had profound effects on the country, most notably creating a divide between the ‘h...
Neo-liberalism, a political and economic ideology, became globally dominant in the
1970s, especially after the economic crises that challenged the efficacy of Keynesian
policies. Rooted in free-market principles, it emphasizes deregulation, privatization, and
minimal government intervention in the economy. While neoliberalism has been credited
with promoting economic growth and globalization, it has also faced criticism for
exacerbating social inequalities. In the context of post-apartheid South Africa,
neoliberalism has had profound and far-reaching consequences, particularly in terms of
poverty, inequality, and unemployment. This essay will explore the main features of
neoliberalism, its application in South Africa after apartheid, and its economic and
political effects on the country.
Main Features of Neo-liberalism
At the core of neoliberalism is the belief that markets, when left to their own devices, are
the most efficient allocators of resources. The key features of neoliberalism include:
1. Privatization: Neoliberal policies promote the transfer of state-owned enterprises
and assets to the private sector. The belief is that private ownership leads to
more efficient management and productivity.
2. Deregulation: Reducing government regulation of industries is seen as a way to
encourage competition and innovation, which, in turn, should drive economic
growth.
3. Free Trade and Globalization: Neo-liberalism advocates for reducing barriers to
trade and capital flows between countries, with the aim of fostering global
economic integration.
4. Reduced Government Spending: Neoliberalism promotes the reduction of
public expenditure, particularly in welfare programs, arguing that this encourages
self-reliance and reduces the tax burden on businesses and individuals.
5. Labor Market Flexibility: This feature emphasizes reducing restrictions on hiring
and firing practices, promoting flexible labor laws that benefit employers.
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