Neoliberlism

Neoliberlism

Neoliberalism and the Global Effects
In Chapter 1, The Third World agenda is allocated to the developmental goals for the underdeveloped nations such as Brazil, Russia, India, China and South Africa (BRICS) and global democracy. In 1971, the United States known as one of the “North” states, decided to utilize the Dollar and depart from the Gold Exchange Standard as an enormous advantage. The US was unwilling to pay in gold to creditors from the Organization of Petroleum Exporting Countries (OPEC) such as Lybia, Syria and Saudi Arabia. In 1973, the US rose wheat, sugar, cement and refined petro-chemical refined oil prices to the OPEC. In result, oil prices quadrupled which created a negative global effect on non-oil producing developed and underdeveloped nations that were highly dependent on it. The Non-Aligned Movement (NAM), which was a set of demands from the United Nations (UN) that inaugurated the Third World countries, had formed a collaboration with the OPEC. The G7 powers (US, UK, France, Germany, Italy, Japan, and Canada) was formed in 1974 by Henry Kissinger and US President Gerald Ford as an alliance to break up the NAM-OPEC alliance. A Third World demand for a New International Economic Order (NIEO), scarcely discussed issues of ecology or sustainable development. The G7 had an agenda to protect the capitalist system and impede the NIEO and OPEC. The G7 feared that the OPEC-NIEO-NAM presumptions among its proponents would end up making global decisions. Conditions for the developing countries worsened and the G7 expectations were slowly met. In 1981, ideology of Neoliberalism came into the picture after the Third World Project was spurred by the movements and failures of industrialist capitalist mal-developments. The rapacious International Money Fund (IMF) and World Bank took refuge in the promise of the UN and developed new policies that ultimately increased poverty in developing countries. Soon, the Third World was in need of aid and became part of...