Neo-Liberalism

Neo-liberalism Neo-liberalism is a political philosophy that proposes that human well-being can best be developed by liberating individual entrepreneurial freedoms and skills within an institutional framework characterised by strong private property rights, free markets, free trade, economic liberalization, privatisation, deregulation. This theory also focuses on decreasing the size of the public sector, while increasing the role of the private sector in today's society. (Harvey 2005) Neo-liberalism is a prominent political philosophy for many governments and international institutions around the world. It is a political force that needs to be reckoned with most people in the world. Neoliberal political philosophy endeavours to unleash and liberate the processes of increased capital. However, because of the Global Financial Crisis in 2008, it has not helped governments and institutions around the world. (Braedley, Luxton 2010) Furthermore, the economic consequences of neo-liberal policies have been similar everywhere. There have been huge increases in economic and social inequality, which have led to severe deprivation for the people living in poorer nations, a disastrous global environment, an unstable economy and an unparalleled bonanza for the wealthy. (Chomsky 1999) Neo-liberalism is effective when there is formal electoral democracy, especially when the population has little knowledge from information, access and public forums necessary for evocative participation in the decision making process. Moreover, it is better to limit political debate over minor issues, and also to restrict governments to the job of protecting private property and enforcing contracts. (Chomsky 1999)

The Neo-liberal approach to employment relations involves four parts of liberalisation, which is the reduction of rules and regulations. Firstly, capital account liberalisation, which is the process by which countries remove restrictions on the flow of foreign capital in and