Are the Principles and Practices of Pure Economic Liberalism Able to Secure an Equal International Economic Development?

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Table of Contents

References & List Of Figures4
Introduction5
Economic Neo-Liberalism5-6
Democracy and Economic Development6-7
Economic Inequality7-8
Pros & Cons of Income Inequality8-9
The Example of Latin America9-10
Economic Liberalism in a Nutshell10-11
Conclusion11-12

Reference List

1)Almond, Gabriel A. and Sidney Verba. 1963. The Civic Culture: Political Attitudes and Democracy in Five Nations. Princeton: Princeton University -Press. 2)Brady, Henry E. 2004. An Analytical Perspective on Participatory Inequality and Income Inequality. In Social Inequality. New York: Russell Sage Foundation 3)Brody, Richard A. 1978. The Puzzle of Political Participation in America. In The New American Political System, ed. Antony King. American Enterprise Institute 4)Burns, Nancy, Kay Lehman Schlozman and Sidney Verba. 2001. The Private Roots of Public Action: Gender, Equality, and Political Participation. Cambridge: Harvard University Press 5)Deininger, Klaus and Lyn Squire. 1996. “A New Data Set Measuring Income Inequality.” World Bank Economic Review

6)Freeman, Richard B. 2004. What, Me Vote? In Social Inequality. New York: Russell Sage Foundationw 10(3)
7)Ffrench-Davis, Ricardo, 1993. Economic Development and Equity in Chile: Legacies and Challenges in the Return to Democracy. Institute of Development Studies

List Of Figures
Fig.1: Differences in National Income Equality around the World Measured by the National Gini Coefficient, drawn by: http://en.wikipedia.org/wiki/List_of_countries-_by_income_equality8

Introduction

Economic liberalism has been a controversial issue for the last decades and more specifically since 1970. The bright example of Latin America marked that period during which the Chile Chicago Boys experimented in the economic liberalism. This was then considered to be a miracle of the economy and it was a rather significant development from many aspects and not only economic ones.

But in my opinion, economic liberalism does not have just the positive side but also a negative one. Many theories have been developed over the last decades and the negative outcome of economic liberalism is that it produces economic inequality and increased unemployment. Economic liberalism separates people in two due to huge income gaps. Of course, even economic inequality has also a positive side because it is created to bring balance and change such situations. The issue of this paper is that pure economic liberalism practices are not able to secure an equal international economic development.

Economic Neo-Liberalism
Economic Neo-Liberalism is a theory that lies in the growth of the economy. The problem is the way that the above is succeeded and also how the wealth is apportioned. Politics has been playing a significant role on economic liberal practices and unfortunately this political intervention over the years has caused many problems in the markets.

Economic liberalism is based on the liberalization of the markets, the opening without discriminations, deregulation and speculation. It is not just the practices of economic liberalism for the last years that have been debated a lot but also the speed of this liberalization! Many economists argue that gradual liberalization can offer better conditions for the companies so that they can operate in an optimal level thus decreasing unemployment.

The liberalization of the markets internationally influences the competition amongst entrepreneurs locally. Such practices could create a drop in the demand locally and shrinkage of the local market due to the huge competition around the world. Under this situation, unemployment will increase; the lower classes will have to tolerate the high prices of basic goods while upper classes will probably enjoy the lower prices of the imported products which are more sophisticated.

The example of Chile which followed economic liberal practices is a...
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