Geography Reference
In-Depth Information
economies. Summarizing neoliberalism's ideological pedigree, Susan
George insightfully observed that:
Starting from a tiny embryo at the University of Chicago with the
philosopher-economist Friedrick von Hayek and his students like Milton
Friedman at its nucleus, the neoliberals and their funders have created a
huge international network of foundations, institutes, research centers,
publications, scholars, writers and public relations hacks to develop, pack-
age and push their ideas and doctrine relentlessly. … So, from a small,
unpopular sect with virtually no influence, neoliberalism has become the
major world religion with its dogmatic doctrine, its priesthood, its law-giving
institutions and perhaps most important of all, its hell for heathen and sin-
ners who dare to contest the revealed truth. (1999: 2-3)
Though not originally thought to be a practical replacement for
Keynesian economics, this 'Chicago School' neoliberal model neverthe-
less represented a neoconservative alternative that would address the
inflationary problems that had emerged in the previous business cycle.
It appealed to President Reagan and his Republican Party's calls for
less governmental interference in American people's affairs and to busi-
ness entrepreneurialism. With its privatization message also being
embraced by Britain's Prime Minister, Margaret Thatcher, neoliberal-
ism had two political champions with the 'gift of the gab' to convince
their electorates and the wider world of neoliberalism's promise. As
Susan George suggests, it not only became the new economic doctrine
but also a faith in the 'market as God' that was so effectively promoted
(Cox, 1999).
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Neoliberal Restructuring Responses to the
Late 1970s-Early 1980s Crisis
Three groups of major players who reacted to this looming economic
crisis were national governments, banks and industrial corporations. All
designed strategies that led to international solutions, or policies diver-
sifying their economic plans to embrace international or global solu-
tions. Faced with falling rates of profit, the global North's industrial
corporations were forced to 'automate, emigrate or evaporate' (Thrift,
1983). Going international, newer automated production and commer-
cial systems and networks would be developed. National industrial cor-
porations streamlined their assembly-line operations to improve quality
control. They embraced new technological and logistical methods of
resource extraction and use, and looked beyond domestic opportunities
