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super-rich. It means that giant corporations can roam the planet like the pirates of old, with no barriers, seeking out the cheapest, most unprotected labor markets for manufacturing, ever undercutting workers' bargaining positions simply by moving on, with no penalties from any government, and identifying the richest oil, gas, mineral and other resources and ripping them off with no benefit to the people who live there, in "free trade" deals with the local rich elite. That's basically it. Example: If the workers in Mexico get uppity and demand $3 an hour in wages, then the multinatonal manufacturer pulls up stakes and moves to Cambodia, where they pay 25 cents an hour. The Mexican workers have no recourse--because their national government are bought and paid for corporatists (neo-liberals).
The phrase "neo-liberalism" is a riff on the liberalism of former centuries, where the business class sought to free itself from monarchy-landed gentry-controlled trade restrictions. The old liberalism was associated with the better qualities of the middle class, including an emphasis on education for all classes, and the opportunity to raise yourself out of poverty by your native talent, industriousness and work (not get stuck at the bottom of a rigid class structure--social mobility). You may have come across the phrase "a liberal education." It means open-minded, tolerant, based on a search for truth, rather than a reliance on "given" truths (such as the Pope and associated royalty dished out). Liberalism, in other words, meant freedom--freedom to think, freedom to invent, freedom to improve yourself, freedom to travel and freedom to make up your own rules, in whatever sphere, including trade. Thomas Jefferson & Co. were liberals! Our country was founded on those liberal principles.
Neo-liberalism, however, means freedom only for the super-rich. It means slavery for many in horrible sweatshops. It means heinous exploitation of people and of the environment. And it is directly an assault on national governments, in so far as they represent the "sovereignty of the people." In democracies, the people take the place of the monarch--and thus acquire the power to regulate trade in their interest--whether to protect local industries and jobs, or to appropriately tax businesses and wealth, or to protect the environment and the health of the people. Neo-liberalism is the wild, lawless, piratical rule of global corporate predators--huge, multinational corporations with loyalty to no one, and with the specific purpose of destroying all local laws and powers that stand in their way.
Global free piracy is also facilitated by the World Bank/IMF which offers loans to needy countries, with onerous payback provisions, such as opening local natural resources to global corporate predators, and severe cutbacks in social programs--education, health, help for small local businesses. Often the local rightwing government incurs the loans, and rips off the money leaving the poor to pay the debt. And a final--and equally devastating--plank of neo-liberalism is the big rich countries dumping their ag produce at cut-rate prices on third world markets, destroying local agriculture, small farmers and the ability of the country to feed itself, and enslaving the country to big country imports. Thousands of small farmers in places like India and South Korea have committed suicide because of these policies, and many more--in third world countries around the world--have been displaced, lost their land, have nowhere to go. (Southern Mexico is a good example--it's one of the bases of the Oaxaca uprising.)
This is what "neo-liberalism" means to third world countries, and why there is such a huge worldwide movement against it. In 2003, Brazil led a 20-country third world revolt against the WTO, a secretive organization, dominated by the most powerful countries, which makes the trade deals and trade rules that disfavor poor nations, and the poor in general, and that assault national sovereignty (for instance, imposing fines on countries with stiffer environmental laws). Neo-liberalism is in disrepute throughout South America, with leftist government after leftist government getting elected on platforms of rejecting neo-liberalism, and re-establishing national and regional self-determination.
Bolivia had a good example of neo-liberalism. The local rightwing government sold the water rights in one Bolivian city to Bechtel Corp. Bechtel then jacked up the prices to the poorest of the poor--even charging poor peasants for collecting rainwater! Classic neo-liberalism! But the Bolivians revolted. There was a major uprising over this, with many large protests, and they basically threw Bechtel out of their country, and then elected socialist Evo Morales, the first indigenous president of Bolivia. Morales is pledged to prevent multinationals from grabbing Bolivia's resources--to keeping local control over them--and, for instance, intends to nationalize Bolivia's gas reserves, so that Bolivians get the most benefit from the resource. (Note: Bechtel then tried to extract millions of dollars from Bolivia in payment for "their" rights to Bolivia's water. This is how neo-liberalism works--a big U.S. corporation manages somehow, through legal deals and trade deals, to claim rights to a basic human resource--water--in a third world country, and then puts the squeeze on. I believe that Bechtel has since dropped the demand for payment for Bolivia's water--it was earning them such terrible publicity.)
Argentina also had a good example of neo-liberalism. The rightwing government incurred huge World Bank debt, with no benefit to the population, and the World Bank/IMF extracted draconian measures in repayment terms. Argentina's economy and society was in near ruins; it was defaulting on the loans. The people rose up against the loans and the draconian terms of payment, and an alliance of poor and middle class people went round with tiny hammers and broke every bank ATM display window in the country, in protest. Three governments later--in quick succession--they finally got a good leftist government to pledge to get them out of World Bank debt and never get into it again. Enter Venezuela, flush with oil profits. Venezuela bought up some of Argentina's debt on easy terms (I believe they may have done it in exchange for beef, since Venezuela is not yet self-sufficient on food), and, with other measures, Argentina is now well on the road to recovery--all indicators are up--and it is doing so well, in fact, that Argentina recently entered talks with Brazil about a common currency. (The talk of South America now if for a South American "Common Market"--specifically to fight neo-liberalism.)
The solution to neo-liberalism is regional self-determination, self-sufficiency and cooperation--and that is what is happening in South America now, with its many new leftist (majorityist) governments--in Brazil, Argentina, Chile, Uruguay, Venezuela, Bolivia, and Ecuador (and in the next election cycles, Peru and Paraguay--my prediction). South America has had it with global free piracy!
www.venezuelanalysis.com is a good source of info on the Bolivarian (ant-neo-liberal) revolution--mostly about Venezuela, but covers some other countries and events as well.
Another source of info on neo-liberalism (global corporate piracy), and on "fair trade" (as opposed to "free trade") is www.globalexchange.org.
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