Quinn Slobodian, a Boston University professor and author of "Globalists: The End of Empire and the Birth of Neoliberalism," dives into the complex origins and implications of neoliberalism. He unpacks how this ideological movement has reshaped global politics since before World War I, highlighting key historical moments and influential figures. The conversation touches on the tension between capitalism and democracy, the rise of Special Economic Zones, and the controversial dynamics of corporate governance in today's world.
Neoliberalism is often misunderstood, yet it fundamentally represents a historical period of global capitalism emerging from the 1970s.
The interaction between states and markets within neoliberalism reveals a partnership where states actively shape market dynamics for specific outcomes.
Recent policies, while appearing progressive, demonstrate how neoliberalism continues to adapt and influence governance in contemporary socio-economic frameworks.
Deep dives
Understanding Neoliberalism's Definition
Neoliberalism is often misdefined in popular discourse, leading to confusion regarding its actual significance. It can be viewed as a historical period, showcasing the emergence of global capitalism beginning around the 1970s, marked by events such as the closing of the gold window or the Volcker shock. Alternatively, it can be understood as a series of policy measures including privatization, deregulation, and liberalization, which can vary by country and implementation over time. Lastly, neoliberalism can also be seen as an intellectual movement with influential thinkers and evolving ideas reflecting the challenges capitalism faces, illustrating a complex definition tailored by historical context.
The Role of States in Neoliberalism
Contrary to the belief that neoliberalism represents the complete liberation of markets, it is essential to recognize the role that states play in its functioning. States have not disappeared but instead have encased markets within legal frameworks to ensure specific economic outcomes. This underscores that neoliberalism is more about state management of market dynamics rather than mere market unleashing. Thus, the relationship between states and markets should be viewed as a partnership where states actively shape the context in which markets operate.
Historical Context of Neoliberal Institutions
The historical roots of neoliberal institutions trace back to the end of the first age of globalization, which predated World War I. Intellectuals seeking to unite diverse political identities within a functioning economic framework laid the groundwork for neoliberalism by addressing the unique challenges of social stability and economic competition. This period witnessed the emergence of institutions designed to protect private property rights over state sovereignty amidst political fragmentation. Such foundational ideas evolved into the globalization practices we see today, positioning neoliberalism as a continuation of past endeavors to integrate various economies while retaining stability.
Impact of Special Economic Zones
The proliferation of special economic zones (SEZs) globally showcases a strategic shift in how states interact with capital, as they offer favorable conditions for investors while challenging traditional governance structures. This trend increases competitive pressure on home states to adjust their policies to attract investment, often leading to tax havens and corporate interests taking precedence over social welfare. SEZs compel existing states to adapt regulations, further entwining the relationship between capital and governance. Consequently, this dynamic reveals that the influence of global capital is not merely about draining resources but also about reshaping how states operate.
Neoliberalism's Resilience and Evolution
Despite narratives suggesting the decline of neoliberalism, examining recent socio-economic policies indicates a transformation that maintains its core principles. The Biden administration's initiatives, such as the Green New Deal, showcase a response to the transformations required in a post-neoliberal world, yet they often still operate within neoliberal frameworks. These initiatives reflect a contested terrain where states incorporate progressive economic strategies while still adhering to the fundamental structures of neoliberal governance. Therefore, neoliberalism persists not outrightly as a failure but as a resilient system continuously adapting to new challenges while shaping policy outcomes.
My guest is Quinn Slobodian, a professor of international history at Boston University. He is the author of "Globalists: The End of Empire and the Birth of Neoliberalism". Neoliberalism is the most misused word in today's political discourse. In this episode we discuss the origins of the ideological movement. What is neoliberalism? When did it begin? How did it transform global politics?
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