Neoliberalism on China and
Beyond
Literature review presentation for SOSC530 Lecture 11
Prepared by Sharon Wong
Here we go…
• Neoliberalism “with Chinese Characteristics”
• State Neoliberalism
• Neoliberalism on Trial
• Freedom’s Pros...
Neoliberalism “with Chinese
Characteristics”
• Historical Background
• 1978 – political uncertainty due to Mao’s death
• S...
What are the “Chinese Characteristics”
• Incorporating neoliberal elements with authoritarian
centralized control
• Chile,...
How?
• Bringing in Market Forces
• Stimulating competition and introducing market
pricing
• Devolution of political-econom...
Giving up Egalitarianism?
• Negative! Claimed to be still a long-term goal!
• But… individual and local initiative had to ...
Internal Transformations
• Socialism with Chinese characteristics vis-à-vis Privatization
with Chinese characteristics
• S...
So and Chu’s State Neoliberalism
• Contrasting between China’s experience of neoliberalism, and
that of the North
• A high...
General Path
• Singular and unique hold on power by the
Communist Party; at the same time, embraced
economic reforms
• Ama...
Situations before the late 1970s
• Rural and urban dwellers were conferred to their own
sector’s welfare benefits and righ...
In late 1970s and the 1980s
(So and Chu’s State neoliberalism)
• Decollectivization
• dissolution of agriculture commune s...
In the 1980s – Dissolution of agricultural
communes
• Peasants were given the right to use communal lands under
an individ...
The establishments of TVEs
• Constitution of December 1982 - causing the
political and administrative powers turned over
t...
The TVEs
• Capital sources
• Savings by the initial surge in rural incomes
• JV with foreign capital (particularly from HK...
Second wave of neoliberal reforms
• The Tiananmen Incident
• Deng’s violent crackdown indicated neoliberalization in
the e...
The 1990s
(So and Chu’s State Neoliberalism)
• Strengthening of Managerial capacity
• Cadre responsibility system
• Streng...
“Liberating” the SOEs
• In early 1980s most of China’s phenomenal
growth rate was being powered from outside the
SOE secto...
Saving the SOEs
• Short-lived dual pricing system turned out
• Still, SOEs did not flourish
• Fell into debt and had to be...
Corporatizing the SOEs
• In 1993, the state “turned targeted large and
medium SOEs into limited liability or shareholding
...
Foreign Direct Investment
• 1980s – the 5 Special Economic Zones (经济特区)
• Xiamen 厦门
• Shantou 汕头
• Shenzhen 深圳
• Zhuhai 珠海...
Bankruptcies of TVEs and SOEs
• More and more ‘open coastal cities’ and ‘open
economic regions’ for FDI
• After 1995 opene...
Huge mega-projects
• Debt-financed investments to transform physical
infrastructures to absorb capital and labor
surpluses...
Rapid Urbanization
• Provides a way to absorb the massive labor
reserves from rural areas
• Provinces and cities engaged i...
Real-estate development and property
speculation
• Banks and other financial institutions
imprudently funded massive prope...
State-owned Banking System
• Largely state-owned
banking system
expanded rapidly after
1985
• Employees raised from
973,35...
State-owned Banking System
• Lots of money went to
failing SOEs
• Creating asset bubbles
• Non-performing loans
• In 2003,...
Modernization of education of science
• Investment in a definitive strategy of research
and development for both military ...
External Relations
• Foreign Trade: From 7% in 1978 to 40% in 1990
• In 1994, abolished dual currency exchange rate
devalu...
Connection with HK
• HK’s chaotic entrepreneurial capital attracted by
the cheap labor in Guangdong area in the late
1970s...
Internal Market
• Mid 1990s, attracted foreign capital
• 10% of a billion population constituted a huge
internal market
• ...
More Export
• Joining WTO and shifting structures of
international competition
• inevitable realignment of trading relatio...
More Import
• Raw materials and energy
• In 2003, of the world’s production, China took
• 30% Coal
• 36% Steel
• 55% Cemen...
Dominating East and SE Asia
• A regional hegemon with enormous global influence
• Looking like the imperial empires in the...
External outlets for internal surpluses
• Fund the US debt
• Invest overseas to secure position in foreign markets
• E.g. ...
Comparison
(So and Chu’s State Neoliberalism)
• 1980s – Expand private sector
• 1990s – Reducing public sector
• Privatiza...
The dark side can be…
Environmental degradation
• Rural and communal lands were dispossessed and sold
to real-estate development
Banking system
• 50% of its loan portfolio is non-performing
• Only way out is by piling up balance of payments surpluses
...
Departing from the neoliberal template?
• Massive labor surpluses creating social and political
instability
• Either absor...
Dilemmas
• Chinese business diaspora reabsorbed into the
Chinese polity in 1997 already structured along
capitalistic line...
Reconstructing class power?
• Fastest-growing economies at the same time one of the
most unequal societies
• Social inequa...
Accumulation of wealth
• The privatized SOEs Managers
• Indigenous (土著) capital coming from TVEs
• Real-estate development...
Social Resistances in 1990s
(So and Chu’s State Neoliberalism)
• Cadre-capitalist class formation
• Fusion of political, e...
Social Unrests
• Super-exploitation of labor
• Capital accumulated by private and foreign firms comes from unpaid
labor
• ...
The moral claims of the Maoists
• Masses constituted by ‘workers, the peasantry,
the intelligentsia and the national bourg...
Harvey’s conclusion…
• China moved towards neoliberalization and the
reconstitution of class power, albeit ‘with distinctl...
Turning point: the Retirement of
Jiang (2002)
• The Three Representatives
• 三個代表思想要求中国共产党要:
• 始终代表中国先进社会生产力的发展要求;
• 始终代表中国...
So and Chu’s Positive projection vs.
Harvey’s negative conclusion
• The Cadre-capitalist class has failed to capture
the c...
So and Chu’s Positive projection vs.
Harvey’s negative conclusion (con’t)
• Actively mobilized the ideology of nationalism...
Emergence of State Neoliberalism
(So and Chu’s State Neoliberalism)
• The late 1990s, began to feel the pains of a
neolibe...
TransitionfromNeoliberalismtoStateNeoliberalismin
the21st Century
(SoandChu’sStateNeoliberalism)
• Building a new socialis...
Future Trajectory
• 4 possibilities
• Return to socialism
• Moved away from socialism >30 years
• Working class and the pe...
Consolidation of State Neoliberalism
• The party-state is promoting domestic consumption and
to improve collective consump...
Let’s go back to the Harvey’s
Neoliberalism on Trial
• Stimulating global capital accumulation? Nope!
• Reduction and control of inflation is the only s...
Persuading the many
• The volatility of uneven geographical development has
accelerated, permitting certain territories to...
Main substantive “achievement”
• To redistribute, rather than regenerate, wealth and income
• Through accumulation by disp...
Achieving accumulation of
dispossession
• Privatization and commodification
• Financialization
• Management and manipulati...
Neoliberal’s evils
• Commodification of Everything
• Cutting powers of trade unions and other working-class
institutions
•...
On Rights
• Theoretically upholding liberalization and freedoms of
individuals
• Actual practices of neoliberalism underpi...
Universalism of rights
• Rights  only focus on political economic rights
• Became an imperialists’ tool for westernizatio...
UN Charter
• Derivative rights
• Freedoms of speech and expression
• Of education and economic security
• Rights to organi...
Freedom’s Prospect
• Roosevelt – excessive market freedoms lay at the root of the
economic and social problems of the 1930...
The End of Neoliberalism
• Heavy debts in the capitalist countries, both developed and
developing
• 2 worst-case scenarios...
Consolidation of neoconservative
authoritarianism
• Maintaining global hegemony through control over oil
resources
• Fear ...
Alternatives
• Engaging with the plethora of oppositional movements
• Seek to distil from and through their activism the e...
Oppositional movements
• Different from traditional labor movements
• Not in the form of organized political parties
• Dir...
Critical Analysis
• Urging people to respond in class terms: If it looks like class
struggle and acts like class war then ...
Critical Analysis (Con’t)
• Discourses to request for broader Rights
• To Life chances, Political association and Good Gov...
Critical Analysis (con’t)
• Argue against the neoconservative assertion of a moral high
ground for its authority and legit...
To Conclude…
• There is a far, far nobler prospect of freedom to be won
than that which neoliberalism preaches
• There is ...
Movie recommendation
• Inside Job
• http://www.youtube.com/watch?v=XsAFyTZfd4o
Thank you!
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Neoliberalism on china and beyond

  1. 1. Neoliberalism on China and Beyond Literature review presentation for SOSC530 Lecture 11 Prepared by Sharon Wong
  2. 2. Here we go… • Neoliberalism “with Chinese Characteristics” • State Neoliberalism • Neoliberalism on Trial • Freedom’s Prospect
  3. 3. Neoliberalism “with Chinese Characteristics” • Historical Background • 1978 – political uncertainty due to Mao’s death • Several years of economic stagnation • Deng Xiaoping: ECONOMIC REFORMS! • Coincided with the turn to neoliberal solutions in the U.S. and the U.K.
  4. 4. What are the “Chinese Characteristics” • Incorporating neoliberal elements with authoritarian centralized control • Chile, South Korea, Taiwan, and Singapore already established the compatibility between authoritarianism and the capitalist market
  5. 5. How? • Bringing in Market Forces • Stimulating competition and introducing market pricing • Devolution of political-economic power to the regions & localities • avoid confrontation with traditional power centers in BJ • local initiatives could pioneer the way to a new social order • Opening-up to foreign trade and investment under strict state supervision • Putting an end to China’s isolation from the world market
  6. 6. Giving up Egalitarianism? • Negative! Claimed to be still a long-term goal! • But… individual and local initiative had to be unleashed • So as to... ↑ productivity and spark economic growth • Xiaokang (小康) & “Four Modernizations” (四个现代化) • Agriculture • Industry • Education • Science and Defense
  7. 7. Internal Transformations • Socialism with Chinese characteristics vis-à-vis Privatization with Chinese characteristics • State-manipulated market economy delivering spectacular economic growth and rising living standards for a significant proportion of the population > 20 yrs • State neoliberalization
  8. 8. So and Chu’s State Neoliberalism • Contrasting between China’s experience of neoliberalism, and that of the North • A highly contradictory term: • the party-state: communist and standing on the side of workers and peasants, • could not carry out all sorts of neoliberal policies to assault workers and peasants and undermine their interests
  9. 9. General Path • Singular and unique hold on power by the Communist Party; at the same time, embraced economic reforms • Amass wealth and upgrade its technological capacities • So as to • Better manage internal dissent and defend itself against external aggression • Project its power outwards onto its immediate geopolitical sphere of interest, i.e. East and South-East Asia
  10. 10. Situations before the late 1970s • Rural and urban dwellers were conferred to their own sector’s welfare benefits and rights  holding back any mass rural migration to the cities • Urban area: SOEs – State-owned enterprises • Reasonably profitable • Security of employment with wide range of welfare and pension benefits • The iron rice bowl 铁饭碗 • Rural area: Agrarian sector organized to a commune system • State-owned banks a depository for savings and provided investment moneys outside of the state budgets
  11. 11. In late 1970s and the 1980s (So and Chu’s State neoliberalism) • Decollectivization • dissolution of agriculture commune system to promote “Personal responsibility system” • Proletarianization of peasants • Marketization • created labor market • Fiscal decentralization and the weakening of the central state • bottom-up revenue-sharing system to build more independent and powerful local states • Opening up and spatial differentiation • open door policy toward foreign investments
  12. 12. In the 1980s – Dissolution of agricultural communes • Peasants were given the right to use communal lands under an individualized ‘personal responsibility system’ • could sell surpluses at free market prices • By the end of 1980s, could lease the land, hire in labor and sell their products at market prices • Township village enterprises (TVEs) were created out of the assets held by the communes and became centers of • Entrepreneurialism • Flexible labor practices • Open market competition
  13. 13. The establishments of TVEs • Constitution of December 1982 - causing the political and administrative powers turned over to newly created township and village governments • later those governments took possession of the communes’ industrial assets and restructured them as TVEs, allowed by legistlation
  14. 14. The TVEs • Capital sources • Savings by the initial surge in rural incomes • JV with foreign capital (particularly from HK or through the Chinese business diaspora) • Active in rural peripheries of areas liberated for foreign investment, e.g. Shanghai and Guangdong • Significances of TVEs • As proving grounds for reforms Gave dynamism in the economy during the first 15 years of the reform period (late 1980s to 1990s) • “Whatever worked with the TVEs could later become the basis of state policy” • Surge of development in light industry producing consumer goods for export  export-led industrialization path (1987)
  15. 15. Second wave of neoliberal reforms • The Tiananmen Incident • Deng’s violent crackdown indicated neoliberalization in the economy was not to be accompanied by progress in the fields of human, civil, or democratic rights • Another wave: • Monetary policy became a prime means of control • More opening to the outside, e.g. Shanghai Pudong • Democracy of consumption to forestall social unrest
  16. 16. The 1990s (So and Chu’s State Neoliberalism) • Strengthening of Managerial capacity • Cadre responsibility system • Strengthening of Fiscal capacity • Tax Sharing Scheme • The provinces that rely on the central government for revenue • Debt-financed investments in huge mega-projects
  17. 17. “Liberating” the SOEs • In early 1980s most of China’s phenomenal growth rate was being powered from outside the SOE sector • In 1983s SOEs were allowed to hire ‘contract workers’ with no social protections and limited tenure • Granted managerial autonomy • Managers could retain a certain proportion of their profits and sell any surplus they produced over their targets at free market prices
  18. 18. Saving the SOEs • Short-lived dual pricing system turned out • Still, SOEs did not flourish • Fell into debt and had to be supported • by the central government or • by the state-owned banks (lending to SOEs on favorable terms and credits) • Causing later serious non-performing loans to grew exponentially in volumes
  19. 19. Corporatizing the SOEs • In 1993, the state “turned targeted large and medium SOEs into limited liability or shareholding companies”; some could even offer public issues of shares • In 1994, all but the most important of the SOEs were converted into ‘share-based co-operatives’ • all employees had the nominal right to purchase shares • By 2002, SOEs accounted for only 14% of total manufacturing employment relative to the 40 % share they had held in 1990
  20. 20. Foreign Direct Investment • 1980s – the 5 Special Economic Zones (经济特区) • Xiamen 厦门 • Shantou 汕头 • Shenzhen 深圳 • Zhuhai 珠海 • Hainandao 海南岛 • Tax holidays, early remittances of profits and better infrastructure facilities • Produced goods for export to earn foreign exchange and to observe foreign technologies and managerial skills • > 2/3 FDI came from overseas Chinese (esp. HK and TW)
  21. 21. Bankruptcies of TVEs and SOEs • More and more ‘open coastal cities’ and ‘open economic regions’ for FDI • After 1995 opened the whole country up to FDI of any type • Competitive pricing mechanisms took over from the devolution of power from the central state to the localities as the core process impelling the restructuring of the economy • Bankruptcies of TVEs and SOEs  Unemployment surged  Labor unrests
  22. 22. Huge mega-projects • Debt-financed investments to transform physical infrastructures to absorb capital and labor surpluses and solve labor unrest • Three Gorges Dam • New subway systems and highways • High Speed Railway (HSR) • The Olympic Games • Deficit-financed  high risks of fiscal crisis • Rapid urbanization
  23. 23. Rapid Urbanization • Provides a way to absorb the massive labor reserves from rural areas • Provinces and cities engaged in inter-urban competition • They resist BJ’s effort to rein in their investments  have the power to fund their own projects by selling rights to develop real estate
  24. 24. Real-estate development and property speculation • Banks and other financial institutions imprudently funded massive property developments throughout China • In 1996 Shanghai bubble burst but resumed even more vigorously in the late 1990s
  25. 25. State-owned Banking System • Largely state-owned banking system expanded rapidly after 1985 • Employees raised from 973,355 to 1,893,957 • Branches raised from 60,785 to 143,796 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 2000000 1985 1993
  26. 26. State-owned Banking System • Lots of money went to failing SOEs • Creating asset bubbles • Non-performing loans • In 2003, a complex transfer of $45 billion from its foreign exchange reserves to 2 big gov’t banks, 0 500 1000 1500 2000 2500 3000 1985 1993 Deposits Loans
  27. 27. Modernization of education of science • Investment in a definitive strategy of research and development for both military and civilian purposes • Commercial satellite provider • Foreign corporations transfer a significant amount of their research and development activity into China, e.g. Microsoft, Oracle, Motorola, Siemens, IBM and Intel • Cheap but skillful labors in China • Huawei: selling at 1/3 lower than its rivals
  28. 28. External Relations • Foreign Trade: From 7% in 1978 to 40% in 1990 • In 1994, abolished dual currency exchange rate devaluated the official rate of 50% inducing massive growth in trade and capital inflows • By 2002, >40% GDP by FDI • Export-led development strategy • Not intended in 1978 • Fully forced after Deng’s southern tour in 1992
  29. 29. Connection with HK • HK’s chaotic entrepreneurial capital attracted by the cheap labor in Guangdong area in the late 1970s • Interested in TVEs in rural areas (allowed to build JV with foreign capitals) • provided machinery, inputs and the global marketing • Emulated by other foreign capitalists, e.g. TW, JP, S. Korea and the U.S. • offshore production center
  30. 30. Internal Market • Mid 1990s, attracted foreign capital • 10% of a billion population constituted a huge internal market • Heavy reliance of FDI makes China a special case different from JP or S. Korea • Inter-regional trade is weak
  31. 31. More Export • Joining WTO and shifting structures of international competition • inevitable realignment of trading relations • In 1980s, low-value-added production • In 1990s, low cost but highly skilled labor attracted value-added ladder of production to compete with S. Korea, JP, TW , Malaysia and SGP, e.g. electronics and machine tools • Causing negative competitive effects on other countries
  32. 32. More Import • Raw materials and energy • In 2003, of the world’s production, China took • 30% Coal • 36% Steel • 55% Cement • Importing from everywhere, including • Suadi Arabia, Sudan, Iran, Russia, Australia, Brazil, Argentina and even the U.S.
  33. 33. Dominating East and SE Asia • A regional hegemon with enormous global influence • Looking like the imperial empires in the nineteenth century but in economics term • Slower growth can roil commodity and financial markets everywhere (e.g. 2004)
  34. 34. External outlets for internal surpluses • Fund the US debt • Invest overseas to secure position in foreign markets • E.g. TV assembled in Hungary to assure Europe markets and N. Carolina to assure the US’s
  35. 35. Comparison (So and Chu’s State Neoliberalism) • 1980s – Expand private sector • 1990s – Reducing public sector • Privatization and corporatization • Commodification of human services • Deepening of liberalization
  36. 36. The dark side can be…
  37. 37. Environmental degradation • Rural and communal lands were dispossessed and sold to real-estate development
  38. 38. Banking system • 50% of its loan portfolio is non-performing • Only way out is by piling up balance of payments surpluses against the US. • But conversely, Chinese economic dynamism is held hostage to US fiscal and monetary policy • Excessive labor cannot be absorbed there comes a politics of overt repression
  39. 39. Departing from the neoliberal template? • Massive labor surpluses creating social and political instability • Either absorb or violently repress • The latter, authoritarian • High fixed capital and excessive production capital and boom and bust cycle of urban investments • All of the above require China to act like a Keynesian state • Maintain capital & Exchange rate controls
  40. 40. Dilemmas • Chinese business diaspora reabsorbed into the Chinese polity in 1997 already structured along capitalistic lines • The neoliberal rules of international trade set up through the WTO, which China joined in 2001 • Political demands for liberalization began to emerge • Worker protests surfaced in 1986 • Student movement against corruptions and requesting for greater freedoms climaxed 1989
  41. 41. Reconstructing class power? • Fastest-growing economies at the same time one of the most unequal societies • Social inequality was never eradicated during the revolutionary era • Regional inequalities have also deepened • Southern coastal cities vs. northern region • Uncertain indicator of the constitution of class power • Wholesale process of proletarianisation
  42. 42. Accumulation of wealth • The privatized SOEs Managers • Indigenous (土著) capital coming from TVEs • Real-estate development encouraged by dispossession • Speculation in asset values using credit granted on favorable terms • Surging consumer culture emerged in the main urban centers and postmodern culture including westernization
  43. 43. Social Resistances in 1990s (So and Chu’s State Neoliberalism) • Cadre-capitalist class formation • Fusion of political, economic and social capitals embedded in the local society • Trickily transforming communal capital into private capital • Working class formation • Workers in the state sector begin to feel like proletarians in a capitalist • Peasants discontent • The middle class intellectuals  the New Left
  44. 44. Social Unrests • Super-exploitation of labor • Capital accumulated by private and foreign firms comes from unpaid labor • Land seizures in rural area • All manners of protests, ‘many of them violent, have broken out with increasing frequency across the country in recent months’ • The party is clearly fearful of the potential breakdown in order and is mobilizing party and police powers to forestall the proliferation of any general social movement that may arise • China was the 2nd largest spender of military expenses on the World in 2009
  45. 45. The moral claims of the Maoists • Masses constituted by ‘workers, the peasantry, the intelligentsia and the national bourgeoisie whose interests were harmonious with each other and also with the state’ Vs. • Massive proletarianisation of workforce, the breaking of the ‘iron rice bowl’, the evisceration of social protections, the imposition of user fees, the creation of a flexible labor market regime, and the privatization of assets formerly held in common
  46. 46. Harvey’s conclusion… • China moved towards neoliberalization and the reconstitution of class power, albeit ‘with distinctly Chinese characteristics’ • At the same time, moving towards a confluence with the neoconservative tide in the U.S. • The authoritarianism • The appeal to nationalism • The revival of certain strains of imperialism
  47. 47. Turning point: the Retirement of Jiang (2002) • The Three Representatives • 三個代表思想要求中国共产党要: • 始终代表中国先进社会生产力的发展要求; • 始终代表中国先进文化的前进方向; • 始终代表中国最广大人民的根本利益。 • Hu & Wen’s policy • “Return to the good old days of the 1950s when the Maoist Party was in full control”
  48. 48. So and Chu’s Positive projection vs. Harvey’s negative conclusion • The Cadre-capitalist class has failed to capture the central party-state. Thus, the central party- state can still uphold the moral high ground of state socialism • Punishing Capitalist for tax evasion • Safety net for peasants by cutting rural taxes • State intervention of certain areas of capitals • Develops plans for strategic development and decrees prices and regulates the movement of capital • Shares risks and underwrites research and development
  49. 49. So and Chu’s Positive projection vs. Harvey’s negative conclusion (con’t) • Actively mobilized the ideology of nationalism • Defines itself as carrying out a national project to make China strong and powerful • A national cohesiveness based on cultural heritage and tradition rather than hostility toward the outside world • No excessive nationalism – control anti-Japanese sentiment, restrain anti-Americanism in the aftermath of the NATO bombing of the Chinese embassy in Yugoslavia • Adopts authoritarian policies to discipline labor, suppress labor protests, and to deactivate civil society • maintain a favorable environment to attract foreign investment • facilitate capital accumulation • seems unavoidable in export-led industrialization • The way out – State Neoliberalism
  50. 50. Emergence of State Neoliberalism (So and Chu’s State Neoliberalism) • The late 1990s, began to feel the pains of a neoliberal economy • Super-exploitation of labor power • The World’s most unequal societies • Environmental degradation • Leading to discontent and social conflict in society • Increasing call to regulate the market • Growing numbers of labor protests, peasant demonstrations, social movements, and other large- scale social disturbances
  51. 51. TransitionfromNeoliberalismtoStateNeoliberalismin the21st Century (SoandChu’sStateNeoliberalism) • Building a new socialist countryside and a harmonious society signaling a change of ideological orientation if the Chinese state • State would play a more active role in moderating the negative impacts of marketization • Abolishment of agricultural tax • Increase of rural expenditure by 15% to guarantee minimal living allowances for farmers • 87% hike for the health-care budget • De-commodification of human services • Promoting the spread of Mimumum Living Standard Assistance for the rural population
  52. 52. Future Trajectory • 4 possibilities • Return to socialism • Moved away from socialism >30 years • Working class and the peasants are still disorganized • Return to neoliberalism • When matured and consolidated its power, will push forward the neoliberal project • Move to imperialism • Great powers will try every means to prevent other states from challenging its position • The consolidation of state neoliberalism
  53. 53. Consolidation of State Neoliberalism • The party-state is promoting domestic consumption and to improve collective consumption and social insurance • Facing sharp economic downturn and the prospect of growing social unrest, the part-state has abundant reasons to move away from neoliberalism to state neoliberalism • If going on like this, “China appears to be emerging as the only poor country that has any chance in the foreseeable future of subverting the Western-dominated global hierarchy of wealth”.
  54. 54. Let’s go back to the Harvey’s
  55. 55. Neoliberalism on Trial • Stimulating global capital accumulation? Nope! • Reduction and control of inflation is the only systematic success neoliberalization can claim • Only success quoted: Sweden, a Circumscribed neoliberalization • Why are so many persuaded and fallen into the trap?
  56. 56. Persuading the many • The volatility of uneven geographical development has accelerated, permitting certain territories to advance spectacularly at the expense of others • Neoliberalization - a huge success from the standpoint of the upper classes, either restored class power to ruling elites or created conditions for capitalist class formation • Spectacular shifts of emphasis under neoliberalizastion giving it the appearance of incredible dynamism • the rise of finance and of financial services
  57. 57. Main substantive “achievement” • To redistribute, rather than regenerate, wealth and income • Through accumulation by dispossession • Including • commodification and privatization of land and forceful expulsion of peasant populations • Conversion of various forms of property rights • Suppression of rights to the commons • Commodification of labor power and the suppression of alternative forms of production and consumption • Colonial, neocolonial, and imperial processes of appropriation of assets • Monetization of exchange and taxation • Salve Trade • Usury, the national debt and the use of the credit system as a radical means of accumulation by dispossession
  58. 58. Achieving accumulation of dispossession • Privatization and commodification • Financialization • Management and manipulation of crises • State redistributions • Cutting expenditure on social welfare • But increasing spending on surveillance and policing
  59. 59. Neoliberal’s evils • Commodification of Everything • Cutting powers of trade unions and other working-class institutions • Transformation in the spatial and temporal co-ordinates of the labor market • Degrading value of the labor • Environmental Degradations • Destruction of tropical rain forests due to unrestrained application of neoliberal principles
  60. 60. On Rights • Theoretically upholding liberalization and freedoms of individuals • Actual practices of neoliberalism underpins the restoration or creation of class power and the results in terms of impoverishment and environmental degradation
  61. 61. Universalism of rights • Rights  only focus on political economic rights • Became an imperialists’ tool for westernization • To accept neoliberal regime of rights is to accept that we have no alternative except to live under a regime of endless capital accumulation and economic growth no matter what the social, ecological, or political consequences
  62. 62. UN Charter • Derivative rights • Freedoms of speech and expression • Of education and economic security • Rights to organize unions • Enforcing these rights would have posed a serious challenge to neoliberalism • Entailing a revolution of great significance in political-economic practices
  63. 63. Freedom’s Prospect • Roosevelt – excessive market freedoms lay at the root of the economic and social problems of the 1930s Depression • Vs. • Bush – neoliberal freedoms at the center of his political rhetoric
  64. 64. The End of Neoliberalism • Heavy debts in the capitalist countries, both developed and developing • 2 worst-case scenarios from the standpoint of the U.S. • A short burst of hyper-inflation would provide one way to delete the outstanding international and consumer debt • A long-drawn-out period of deflation of the sort that Japan has been experiencing since 1989.
  65. 65. Consolidation of neoconservative authoritarianism • Maintaining global hegemony through control over oil resources • Fear and insecurity both internally and externally were easily manipulated for political purposes • God-given character manifesting destiny of the US to be the greatest power on earth and as a beacon of freedom, liberty , and progress • Actually the US hegemony is crumbling • The New Imperialism
  66. 66. Alternatives • Engaging with the plethora of oppositional movements • Seek to distil from and through their activism the essence of a broad-based oppositional programme • Resort to theoretical and practical enquiries into our existing condition • Seek to derive alternatives through critical analysis • Most importantly, initiate dialogue between those taking each path and thereby to deepen collective understandings and define more adequate lines of action
  67. 67. Oppositional movements • Different from traditional labor movements • Not in the form of organized political parties • Direct relevance to particular issues and constituencies • Choi Yuen Village • The Korean Farmers
  68. 68. Critical Analysis • Urging people to respond in class terms: If it looks like class struggle and acts like class war then we have to name it unshamedly for what it is • Shows how and why popular movements are currently bifurcated • Defining movement types • Expanded reproduction concerning the exploitation of wage labor and conditions defining the social wage • Against accumulation by dispossession • Points up exploitable contradictions within the neoliberal and neoconservative agendas • Monopolization, centralization and internationalization of corporate and financial power • Startling increase in class and regional inequalities
  69. 69. Critical Analysis (Con’t) • Discourses to request for broader Rights • To Life chances, Political association and Good Governance • For control over production by the direct producers • To the inviolability and integrity of the human body • To engate in critique without fear of retaliation • To a decent and healthy living environment • To collective control of common property resources • To the production of space • To difference
  70. 70. Critical Analysis (con’t) • Argue against the neoconservative assertion of a moral high ground for its authority and legitimacy • Criticizing the anti-democratic nature of neoliberalism backed by the authoritarianism of the neoconservatives that should surely be the main focus of political struggle
  71. 71. To Conclude… • There is a far, far nobler prospect of freedom to be won than that which neoliberalism preaches • There is a far, far worthier system of governance to be constructed than that which neoconservative allows
  72. 72. Movie recommendation • Inside Job • http://www.youtube.com/watch?v=XsAFyTZfd4o
  73. 73. Thank you!

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