As Globalization and Neoliberalism are mentioned in public mass media, these terms are
mainly afflicted with extensive critiques. Neoliberalism is implied an egoist, reckless transfer
of Darwin’s doctrine to Economy in which only the fittest can survive. This so called doctrine
becomes more and more evident.
Besides other definitions of Globalization I will refer to a “general” definition which is
sufficient as a required framework for this paper. I will define it as a term to “describe the
growth and spread in investment, trade, and production, the introduction of new technology,
and the spread of democracy around the world.” (Schaeffer 2003: 1) The degree of
Globalization “would affect not only production, finance, technology, media and fashion, but
also the international political system.” (Archibugi 2004: 438)
The logic of the market has undoubtedly penetrated other subsystems of societies.
In the overall concept of Globalization, Neoliberalism is the economic “Ideology” which
coins globalization. Neoliberalism is “the” constitutive basis, the incentive of Globalization.
Globalization explicitly implies the idea of worldwide free trade and global market economy.
(Cp. Schäfer 2003: 36) „At the end of the twentieth century, it looks clear that there has been
a kind of triumph o global capitalism.” (Langhorne 2001: 16)
This obvious development is frequently criticised all over the world dependent on sociocultural
and structural background of critiques. In Africa targets of criticism are mainly
international institutions like the IMF, World Bank, World Trade Organization or the Group
of 8, banks and stock exchanges in the US, Canada and Europe. (Cp. Wood 2004: 69-75)
This paper intends to elaborate Neoliberalism as the omnipotent market ideology and the
inevitability of an evolutionary process. Outgoing from this thesis, neoliberalist-critics
underestimate the importance of Global Governance as a concept of government on a global
level. Instead, critics misguiding criticize the logic of a working system based on inequality.
Hereafter this paper offers an appropriate concept of Global Governance which might be an
opportunity to deal with apparent negative externalities in the global market system.
Table of Contents
1 Introduction
2 Neoliberalism
2.1 Historic development
2.2 Concluding remarks
3 Critics of Neoliberalism
3.1 Critizicing individuality
3.2 Critizising inequality
3.3 Conclusion
4 How should appropriate Global Governance be designed?
4.1 New developments
4.2 Global Governance – Conception and goals
4.3 Problems of Global Governance
5 Conclusion
Research Objectives and Themes
This academic paper examines the construct of Neoliberalism as a dominant market ideology and evaluates its role within the context of Global Governance. The primary research goal is to demonstrate that common criticisms of Neoliberalism often misjudge the logic of the market system and that a more constructive, robust framework for Global Governance is necessary to mitigate negative externalities while leveraging the benefits of global market integration.
- Historical evolution of Neoliberalism and market-based economic philosophies.
- Critical analysis of the tensions between individual market logic and communitarian goals.
- The relationship between globalized capitalism, state functions, and modern governance challenges.
- Conceptualizing "Smart Governance" and sustainable institutional frameworks for the global level.
- Balancing market freedom with democratic legitimacy and resilience against systemic risks.
Excerpt from the Book
3.1 Criticizing individuality
The „ideology“ of the market has been criticized in many ways. Critics focus on the undermining of communitarian values, the vanishing powers of the state, deregulation and negative externalities of globalized market ideals. Negative Externalities are side-effects which arise although or just because individuals follow their self interest and affect third parties. On the first sight this critique seems to be right. Mass unemployment, poverty and conflicts seem to affirm these undeniable facts. But are these phenomena caused by the market system or is an answer more difficult to make?
One part of the critiques is focussed on the undermining of communitarian morals and the omnipresence of economic logics in nearly every societal subsystem. Here it has to be noted that it is, like Hayek mentioned, the logic of the economic system which is based on the pursuit of individuals´ interest which indirectly leads to a communitarian goal, namely wealth. But critics demand a general new-orientation of the market system. They favour socio-cultural values and try to put them into the economic system which cannot work because it depends on individual actions in following self interest. Egoism and self interest are seen as an unpreferable option but are approved incentives for creating wealth. It has to be understood as an mechanism of incentives and sanctions which is on the long run successful because of its simplicity, robustness and market coordination (cp. Willke 2003: 52) In this system, exchange as the smallest object of transaction does not work without reciprocity of advantage. Moral, altruism and orientation on common welfare are not the dominating motive in economy.
Summary of Chapters
1 Introduction: Provides an overview of globalization and Neoliberalism, setting the framework for the paper's thesis regarding the necessity of effective Global Governance.
2 Neoliberalism: Outlines the historical development and philosophical foundations of Neoliberalism, moving from classical theories to the shift in economic paradigms in the late 20th century.
3 Critics of Neoliberalism: Discusses common critiques regarding individuality and inequality, arguing that these often fail to recognize the systemic institutional requirements of a functional market economy.
4 How should appropriate Global Governance be designed?: Proposes a new model for governance that reconciles market freedom with the challenges of a globalized knowledge society.
5 Conclusion: Synthesizes the argument that a combination of democratic legitimacy and cognitive expertise is required to create a sustainable framework for future global governance.
Keywords
Neoliberalism, Global Governance, Globalization, Market Economy, Economic Policy, Individualism, Inequality, Institutional Framework, Knowledge Society, Political Legitimacy, Resilience, Systemic Risks, Public Goods, Ordoliberalism.
Frequently Asked Questions
What is the central focus of this paper?
The paper explores the intersection of Neoliberalism, market ideology, and the practical challenges of establishing effective Global Governance in a globalized world.
What are the primary themes discussed?
Key themes include the historical development of market philosophies, the criticism of market-driven social outcomes, the role of the nation-state, and the design of new regulatory frameworks for international systems.
What is the core research objective?
The objective is to argue that Neoliberalism, while often criticized, provides an economic reality that requires smart governance structures rather than anti-market policies to manage systemic externalities.
Which scientific methodology is applied?
The work utilizes a theoretical and analytical review of economic, political, and sociological literature to construct a normative argument for institutional reform.
What topics are covered in the main section?
The main sections cover the history of neoliberal thought, the critique of individual and systemic failures, and the proposal for "Smart Governance" to handle global uncertainty.
Which keywords characterize the work?
Core keywords include Neoliberalism, Global Governance, Market failure, Institutional frameworks, and Political legitimacy.
How does the author view the role of the nation-state?
The author argues that the nation-state remains essential as a producer of collective goods and a necessary framework for maintaining the market, even in a globalized context.
What does the author mean by "error-embracing"?
Inspired by Donald N. Michael, the term refers to the capacity of governance institutions to recognize deficient decisions and maintain the flexibility to switch to better options for action.
- Quote paper
- Thilo Schneider (Author), 2007, Morally motivated critique of the construct of Neoliberalism - An obstacle to appropriate Global Governance?, Munich, GRIN Verlag, https://www.grin.com/document/68897
