The Ideological Dimension of Global-

ization: Neoliberalism

So-Jeong Yi

GISA1032014.03.27

What is an ideology?

“a system of widely shared ideas, patterned beliefs, guiding norms and values, and regulated ideals ac-cepted as fact or truth by some group”

“It is an agenda of things to discuss, questions to ask, hypothesis to make” (Terrell Carver)-Connection between ideas and politics

“A way of looking at the world that justifies or un-dermines an existing order”(James Mittelman)- Power hierarchy

Knowledge and Power

• Power and knowledge are joined (Foucault)• Dominant power structure (agents) sets dominant

knowledge• Dominant knowledge sets ideological discourse –

to justify their power, secure consent etc.• Thus ideas infused in the globalization process

inform the exercise of power. • Thus, ideological analysis helps to decipher codes

of domination• Ideological approach is useful to provide insight

into the contested agendas for globalization

Globalization and Ideology- Manfred B Steger

• Is it possible to separate the social-scientific study of glob-alization from ideological and normative matters?

• Researchers must enter into the value-laden arena of ideol-ogy – “the exhibited normative preferences, and the rhetor-ical and polemical maneuvers performed by the main par-ticipants in the public debate on globalization – focus of the researcher’s critical task.” – critical assessment of language about globalization

• The inclusion of one’s own beliefs and values do not neces-sarily invalidate one’s research project.

• The motivation and prejudices of the interpreter condition every act of understanding (Hans-Georg Gadamar)

• “Academic efforts to capture the nature of globalization apart from the ongoing ideological claims made in the pub-lic arena reinforce, intentionally or not, the dominant global-ist project that alternately masks and transmits a neoliberal worldview, thus making it easier for existing power interest to escape critical scrutiny.”

Criticisms of neoliberalism

• Narrow definition of well-being• Conceal or obscures the social and material inter-

ests of those who push for such system• Transnational capitalism – global interest, influence- cultural ideology e.g. consumerism• Empire – exertion of power by capitalist nations

Roots of Neoliberalism – classical liberal ideals

• Adam Smith (1723-1790)- Homo economicus- Self-regulating market, “Invisible Hand”- Laissez-fair market

• David Ricardo (1772-1823)- Theory of comparative advantage

• Herbert Spencer (1820-1903)- Survival of the fittest – Charles Darwin’s theory of evolution

Rise of neoliberal ideas:Late 1970s – Friedrich Hayek and Milton FriedmanLate 1980s – Margaret Thatcher and Ronald Reagan

Neoliberalism

• Basic Idea: economic freedom• The central tenets of neoliberalism- The primacy of economic growth- the importance of free trade to stimulate growth- The unrestricted market/the reduction of government regula-

tion- The advocacy of an evolutionary model of social development

anchored in the Western experience and applicable to the en-tire world

• Neoliberal state- Reductions in nation’s spending on social welfare programs- Structural adjustment- Strict control over organised labour - Privatisation- Tax cut (low tax)- Free movement of capital

Neoliberal Ideology

• Association of globalization with the universal benefits of market liberalization. – rising global living standard, economic efficiency etc.

• Public policy should be confined to those mea-sures to liberate the economy from social con-straints eg. Privatization

• Creation of a single, global markets in goods, ser-vices and capital

• All people and states are subject to the logic of globalism – no choice but to adapt

5 Central claims of globalism - Manfred B Steger

1. Globalization is about the liberalization and global integration of markets

2. Globalization is inevitable and irreversible3. Nobody is in charge of globalization4. Globalization benefits everyone.5. Globalization furthers the spread of democracy in

the world.

5 Central claims of globalism - Manfred B Steger

1. Globalization is about the liberalization and global integration of markets

• Liberalization and global integration of markets – the best and most natural way ( self-regulating market as the nor-mative basis)

• Thomas Friedman’s the Lexus and the olive tree• “the driving idea behind globalization is free-market capital-

ism”• Limited role for the government? – only realizable through

gov’s active role • Liberalization + Integration of markets = globalization?• Alternative view?

5 Central claims of globalism - Manfred B Steger

2. Globalization is inevitable and irreversible.• By focusing on the “logic” of technology and markets, glob-

alists minimize the role of human agency and individual choice – centerpiece of liberal thought

• Margaret Thatcher “ there is no alternative.”• Neoliberal policies are above politics, because they simply

carry out what is ordained by nature• The narrative of inevitability also helps to justify the cre-

ation and execution of governmental austerity measures

5 Central claims of globalism - Manfred B Steger

3. Nobody is in charge of globalization.

• People are not in charge of globalization; markets and technology are.

• Is it outside the realm of human choice?• Washington Consensus (IMF, WTO)• “No one is in charge” – “America is in charge”- US

militarism

5 Central claims of globalism - Manfred B Steger

4. Globalization benefits everyone.• Association of globalization with the universal

benefits of market liberalization. eg. Creating jobs• Unequal global-distribution patterns – markets

will eventually correct “irregularities”• Doubt about the effects of the free market

panacea

5 Central claims of globalism - Manfred B Steger

5. Globalization furthers the spread of democracy in the world.

• Free market and democracy are synonymous?• Limited definition of democracy• “promoting polyarchy”? – elitist model of market

democracy• Voting helps to obscure the conditions of inequal-

ity reflected in existing asymmetrical power rela-tions in society

Questions

1. What do you think about the central claims of the neoliberalism?

• Globalization is about the liberalization and global integration of markets

• Globalization is inevitable and irreversible• Nobody is in charge of globalization• Globalization benefits everyone.• Globalization furthers the spread of democracy in

the world.2. Is it possible to separate the social-scientific study of globalization from ideological and norma-tive matters?