Essay on Neoliberalism, Embedded Liberalism and National Creation: A Historical Overview

Introduction

The author offers a historical overview of neoliberalism against the backdrop of capitalist growth, and the development of a new method, embedded liberalism in the 1950s and 60s (Keskin, 2009). According to the neoliberal concept, all kinds of actions that Bremer reveals were essential and necessary for the growth of economic, and hence guaranteeing enhanced health of the population at large. In the book, the author recognizes the first experimentation with neoliberal national creation, as the Chilean case after September 11, 1973, coup (Keskin, 2009). The coup was similar to the Turkish case under the martial command, after 1980. Harvey states, "the good freedoms are lost; however, the wicked ones take over" (Harvey, 2007). He posits that neoliberalism encompasses creative destruction, and has structured the existing division of labor, social relations, welfare supplies, and the culture of American citizens (Keskin, 2009). The paper will provide a comprehensive review of the book by covering different historical topics that base its subject on neoliberalism.

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Freedom's Just Another Word

The neoliberal concept can be derived from the political views of human dignity and individual liberty, such as "core values of civilization" (Harvey, 2007). The ideas of self-esteem and personal liberty are influential and interesting in their own perspective. Such notions allowed dissident activities in eastern Europe, and the Soviet Union prior to the climax of the Cold War (Harvey, 2007). For instance, the student organizations that dominated the globe in 1968; from Paris and Chicago to Bangkok and Mexico City, were among the group of individuals who advocated for the freedom of speech, and personal opinion (Harvey, 2007).

Neo-liberalism has contributed a lot to the formation of new monetary processes that have led to the growth of the laissez-faire economy and integrated with a pure liberalist idea (Keskin, 2009). According to neo-liberalism, a nation is the facilitator of the free market and safeguards private property. Conversely, the state, rather than being a facilitator, they only choose to formulate policies that the capitalist class at the expense of the low- and middle-income earning citizens (Keskin, 2009). In the context of war, after America was attacked by Terrorists in the famous 9/11 attack, the then President Bush declared war against all its enemies.

Paul Bremer, head of the Coalition Provision Authority, ratified four bills that encompassed, "the full privatization of public enterprises, full possession rights by oversees companies of Iraqi business, and finally the full return of overseas incomes (Harvey, 2007). "During that period, only oil was excluded for any taxation" (Harvey, 2007). However, the labor market was to be strictly controlled. A highly regressive "flat tax" (an ambitious tax-reform plan long backed for execution by conformists in the US) was also implemented (Harvey, 2007). The author states that it is worth recalling the foremost research with neoliberal state creation that happened in China after the Pinochet upheaval more than three decades ago (Harvey, 2007).

The rebellion, against the constitutionally voted administration of Salvador Allende, was spearheaded by local business leaders, who were endangered by Allende's ambition towards communism (Harvey, 2007). They wanted capitalism to prevail so that they would be able to amass more wealth, and ultimately take control of Chile (Harvey, 2007). However, after some years, the labor market was ultimately liberated from the institutional limits that had been imposed. The US had sponsored the training of Chilean economists at the University of Chicago, who later come to dominate the institution in Santiago (Harvey, 2007). The author also highlights that the freedom of overseas firms to repatriate incomes from their Chilean procedures was definite. Export centered development opted over import-centered production (Harvey, 2007). The short-term revitalization of the Chilean economy in terms of growth rates, growth of wealth, and high rates of return on foreign investments were transitory (Harvey, 2007).

Why the Neoliberal Turn?

Harvey's A Brief History of Neo-liberalism introduces a unique perspective on china (Keskin, 2009). Many academics have stated Thatcher and Reagan's neoliberal monetary policies. (Keskin, 2009). But few of them accentuated the significance of Deng Xiaoping's monetary transparency policies in the nation. The author also identifies that while deregulation has been affected, the labor market is still controlled by the state and corporate forces (Keskin, 2009). He argues that it was a stolen democracy, with stolen freedom in the hand of the capitalist (Keskin, 2009).

The restructuring of a nation's policies and its global relations after the second world war was meant to avoid a reoccurrence of the shattering events that had greatly tested the consumerist order in the prodigious economic collapse of the 1930s (Harvey, 2007). Harvey underscores that neo-liberalism was designed to stop the recurrence of the inter-state geopolitical competitions that caused the war (Harvey, 2007). To guarantee local peace and tranquility, the leaders had to construct some category of class concession between capital and labor (Harvey, 2007). The author further states that the only option was to develop the correct mix of national, market, and self-governing organizations to foster peace, inclusivity, health, and firmness of residents (Harvey, 2007).

Free trade in commodities was implemented under a structure of fixed exchange rates secured by the US dollar's convertibility into gold at a fixed rate (Harvey, 2007). The fixed exchange rates did not conform with the free capital inflows that had to be regulated, but the US had to permit the free flow of the dollar outside its limitations if the dollar was to purpose as global reserve money (Harvey, 2007).In the US, proponents of neo-liberalism stated that it will help to create more employment since money will be in circulation, and the entrepreneurs will be able to come up with new businesses (Harvey, 2007). The economy will also grow since the productivity rate will increase due to the rise of youths being recruited to work on the already established startups.

Neoliberal globalization has generated a new monetary structure that looks very distinct today before it did in the 1950s (Keskin, 2009). Currently, there is no such thing as an autonomous national economy, instead what exists is a series of interdependent states that establish the global world economy. The author states that neoliberalism does not merely contain fiscal ideas; it also encompasses a comprehensive social, economic and political structure (Keskin, 2009). As a result of this current stage of neo-liberalism, the author sums up that bad freedom has substituted good freedom. The greed of politicians towards formulating policies that favor the elites at the expense of the low and middle status can best explain Harvey's thoughts on the above statement. Harvey's inquiry on how neo-liberalization was attained, and who initiated it, leaves the audience with the suspense of trying to understand who is behind the process of totality (Harvey, 2007).

David Harvey, in his book, contends that neoliberalism is a kind of political perspective, which has one mission to accomplish; to reinstate the class power. The book portrays the recent surge of the anti-neoliberal work that has been done by different researchers across the globe to support his idea (Lee, 2016). An example is a literature in Harvey's book, which explicitly defies with the definition of neoliberalism. There are a number of works, which tell what neoliberalism means, but the definitions do not merge in one way or the other. Harvey's definition tends to focus on a certain powerful class, which always works to protect its interests. However, Harvey stands to defend what neoliberalism means in his book. He provides a resonant and powerful definition. According to him, neoliberalism refers to a type of political economy that strives to restore the economic elite; the class power. He argues that neoliberalism is more of a reality rather than a utopian project as many people see it. It is like a mask, which hides the realities of the rebuild class of power in the already financially stable economy.

Throughout the book, Harvey demonstrates his concept using different examples to show how the principles and theories of neoliberalism conflicts with the interests of the elite power. The first scenario is that one of the bailouts of Wall Street Companies, which at many times are protected by Bush's administration (Schwarzmantel, 2007). Any time there is a threat to the class power, the administration of Bush comes in to rescue them by overriding with the values of neoliberal. Another example is the Korean case where the United States government chose to further self-interest. Korea experienced massive bankruptcies something that led to a financial recession hence constructing its national income.

There is also a theme about the criticisms of global capitalism presented in the book. On page 152, Harvey claims that neoliberalism represents an erroneous theory that has gone wild. It is like a senseless type of utopian project that highlights how global capitalism is embellished with criticisms. On another hand, this kind of analysis is not profound and satisfying to many neoliberal politicians or economists. Harvey is one-sided, particularly on the power class; this makes it difficult to demonstrate the true definition of neoliberalism. One can also be convinced upon reading the book since it talks about a system where the freedoms of the elitists are replaced by social equality and proponents who want freedom. Hitherto, Harvey had argued that neoliberalism is that kind of political economy, whose main focus is to restore the class power. Later, he presents another argument that leaves everybody in confusion by saying that freedom in the market is replaced by greater freedom of justice, social equality, and democracy in the cultural, economic, and political sphere.

The concept, neoliberalism has for many years uplifted some nations such as the United States, Britain, among others; this is done at the expense of the struggling and working class. The neoliberalism behavior happens across the world because it engages at coercion. The elite set up rules, which protect not only their interests but that of those countries they trade with at the expense of the working class and at the same time struggling countries. Depending on the academic interpreter, Harvey's book presents what Marxist theory tries to put across when looking at the theme of capitalism. The powerful class exploits the working class and their main focus is to protect their interests. The greatest and influential part is where Harvey presents Marxist political economy analysis to highlights what neoliberalism means.

There is also a concept of accumulation by dispossession, which seems to play a vital role under the uneven geographical developments that are witnessed in Mozambique, Singapore and elsewhere (Lee, 2016). Neoliberalism favors some countries such as the United States and Britain at the expense of the working class. The economic elites have become aware that they can use their power and influence to conduct any activity they want so long as they are protecting their own interests. In understanding Harvey's theoretical concept, neoliberalism varies across countries and perhaps it is important in the book because it is trying to answer a question presented in chapter one of the book. Connecting the topic of the book, a brief history and what it discusses in detail reveals that neoliberalism is a kind of fallacy, meaning that neoli...