Neo-liberal/New Right global devolpment

Neo liberal/new right

New right approach underpins many development organizations like the IMF and the world bank. Like mod theory, Neo-libs key idea is that the rest of the world should follow the same path to development the rich did; it just disagrees on the nature of the path.

• Rejects aid - Neo-Liberalism criticises Western aid because it breeds corruption - corrupt African dictatorships in the 1960s-80s were helped by Western aid because all of the money went into the pockets of government officials not to the people who needed it

• Key theorist; BAUER;

1. Aid creates dependency culture & discourages entrepreneurial spirt

2. Foreign aid encourages greed of kleptocracy (who’ve controlled distribution)

3. Aid = stifled free market. Food aid especially brings down local prices, making it hard for local producers to get fair price.

Laissez faire approach believes countries devolp by maximizing exports and sales in global market.

• Sees trade as key feature in devolp

• Trade should be encouraged , barriers and restrictions taken down

• Governments minimize interference and taxation; believe economic mismanagement has hindered devolp.

• Economic activity, like Smith said, will be…