A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It
description
Transcript of A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It
![Page 1: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/1.jpg)
A Crisis of Crises: How Neoliberalism 1.0 Became
Neoliberalism 3.0 and What We Need to Do About It
Ronald LabontéUniversity of Ottawa
![Page 2: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/2.jpg)
![Page 3: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/3.jpg)
The truth is that there is as yet no credible, socially just, ecologically sustainable scenario of continually growing incomes for a world of nine billion people.
UK Sustainable Development Commission, Prosperity without Growth? 2009
![Page 4: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/4.jpg)
Redistribution, regulation and rights
“Policies should provide for:• systematic resource redistribution between countries and within
regions and countries to enable poorer countries to meet human needs,
• effective supranational regulation to ensure that there is a social purpose in the global economy, and
• enforceable social rights that enable citizens and residents to seek legal redress.”
Deacon, B., Ilva, M., Koivusalo, M., Ollila, E., & Stubbs, P. (2005). Copenhagen Social Summit ten years on: The need for effective social policies nationally, regionally and globally (GASPP Policy Brief No. 6). Helsinki: Globalism and Social Policy Programme, STAKES. Available: http://gaspp.stakes.fi/NR/rdonlyres/4F9C6B91-94FD-4042-B781-3DB7BB9D7496/0/policybrief6.pdf.
![Page 5: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/5.jpg)
Neoliberalism 1.0
Washington Consensus:•privatization of state assets•deregulation of economic markets•lower corporate and individual taxes •more user pay for public services•government deficit reduction•trade and financial liberalization
![Page 6: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/6.jpg)
0
10
20
30
40
50
60
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Number of financial crises by year, 1971 - 2002
![Page 7: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/7.jpg)
Costs of the Financial Crisis• Direct public subsidy to banks: over USD 100
billion dollars annually by the US and UK governments
• Knock-on recessionary effects and lost global economic income: around USD 4 trillion dollars annually, expected to persist for many years, and likely ranging between USD 60 and 200 trillion dollars
Source: Andrew Haldane, Executive Director, Financial Stability, Bank of England: The $100 Billion Question. Institute of Regulation and Risk, Hong Kong, 30 March 2010
![Page 8: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/8.jpg)
Health Consequences of the Crisis: Low-Income Countries
• Increase in those living below the abject ($1.25/day) poverty level: 50 – 200 million by 2009/2010– For 390 million poorest Africans, a 20% drop in income
• Increase in global unemployment: 55 - 100 million• Increase in child mortality: 200,000 to 400,000 excess
deaths• Increase in child labour and domestic violence• Decrease in remittances• Decrease ($300 billion, or 25%) in financial flows to
developing countriesWorld Bank. The Global Economic Crisis: Assessing Vulnerability with a Poverty Lens, 2009; Marmot M, Bell R. How will the
financial crisis affect health? BMJ 2009;338:858-60; International Labour Organization. Global employment trends 2009. Geneva: ILO, 2009; Overseas Development Institute. Children in times of economic crisis: Past lessons, future policies. Background Note. March 2009.
![Page 9: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/9.jpg)
“Poor social policies, unfair economics and bad politics are killing people on a grand scale.”
![Page 10: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/10.jpg)
Those who support fiscal tightening argue that it is indispensable for restoring the confidence of financial markets, which is perceived as key to economic recovery. This is despite the almost universal recognition that the crisis was the result of financial market failure in the first place… (p.V)
![Page 11: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/11.jpg)
Karmjeet Sekhon, project manager for Indian food company Karuturi Global, with crops in Ethiopia's
Gambella province. Photograph: John Vidal for the Guardian
Ethiopia has sold leases to 3.4
million hectares of its best
farmland to foreign
companies
yet relies on 700,000 tonnes of emergency food
aid each year
![Page 12: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/12.jpg)
![Page 13: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/13.jpg)
UN Social Protection
Floor Initiative
http://www.socialsecurityextension.org/gimi/gess/ShowTheme.do?tid=2485
![Page 14: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/14.jpg)
Low-income countries
High-income countries
![Page 15: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/15.jpg)
The way forward is:
‘tough, sustained bilateral negotiations’
(WTO/TRIPS++)
US Trade Representative Ron Kirk 7th WTO Ministerial
![Page 16: A Crisis of Crises: How Neoliberalism 1.0 Became Neoliberalism 3.0 and What We Need to Do About It](https://reader030.fdocuments.net/reader030/viewer/2022020309/56815651550346895dc3f0b6/html5/thumbnails/16.jpg)
A Way Forward
• A life that is secure• Opportunities that are
fair• A planet that is livable• Governance that is just