UGANDA CHRISTIAN UNIVERSITY
MBALE UNIVERSITY COLLLEGE
(GROUP COURSEWORK)
LIST OF GROUP 4 MEMBERS
S/NO NAME REG NO SIGN
1 WABWOBA M.KITUTU S18/MUC/BSW/872
2 WABWIRE JIMMY. N.JR S18/MUC/BSW/112
3 BABIRYE BUSHIRA S18/MUC/BSW/116
4 OUMO MOSES S18/MUC/BSW/524
5 MACHO FRED S18/MUC/BSW/804
6 MAYEKU IVAN. S18/MUC/BSW/789
7 NAMUKOSE ASHA S18/MUC/BSW/625
COURSE : BSWASA
COURSE UNIT : UNDERSTANDING ISSUES OF UNBAN DEVELOPMENT
PROGRAM : DAY
YEAR OF STUDY : TWO
SEMESTER : ONE
TASK : GROUP COURSEWORK
LECTUER : MR MAFUKO DAVID
DATE OF SUBMISSION : 19/09/2019
Discuss the neo-liberalization theory as used in rural development
Development theories is a term used to mean collection of theories a lot how used
how to desirable change in society is best achieved. Such theories grow on a
several of social science disciplines and approaches
Depending on which theories that is being looked at there are different
explanations to the processes of development
The word liberal took on a specifically political meaning with the establishment of
liberal parliamentary caucuses in Sweden and Spain, and later on throughout
Europe, in the first decades of the nineteenth century (Gray 1995).
Neoliberalism is a revival of liberalism. This definition suggests that liberalism, as
a political ideology, has been absent from political discussions and policy-making
for a period of time, only to emerge in more recent times in a reincarnated form
Neoliberalization theory is used to refer to economic development (free trade
polices). In short the neo-liberalization explanation is responsible for the
economic crisis in African economy, there are exclusive state regulations of the
economy which distort the process of economic development and leads to infancy
in the allocation of economic goods
Neoliberalism is the intensification of the influence and dominance of capitals it is
the elevation of capitalism as a mode of production into an ethic set of political
imperatives, and cultural logic. It is also a project to strengthen, restore, or in some
cases constitute new power of economic elites
Another theme that Harvey explores – understandably, given his background in
human geography – is the phenomenon of uneven spatial developing influence in
the economy especially through privatization and austerity.
A new expansion in time and space of the market: although there has been a
global-scale market economy for centuries, neoliberals find new areas of
marketization.
Automated trading, and the creation of virtual market-like structures, are neoliberal
in the sense that they are an intensification of transaction for transaction's sake.
However, a world in which all entrepreneurial activity was automated would not
be neoliberal, or liberal.
Market forces are also intensified by intensifying assessment, a development
especially visible on the labour market. Even within a contract period, an employee
will be subject to continuous assessment. The use of specialized software in call
centers has provided some extreme examples: the time employees spend at the
toilet is measured in seconds: this information is used to pressure the employee to
spend less time away from the terminal
The worldwide great depression of the 1930s brought about high unemployment
and wide spread poverty and was widely regarded as failure of economic
liberalism.
Origin of the theory
Originally the term was used by a group of liberals who helped shape social market
economy in the mid-20th century.
Contemporary use
Neo-Liberalization is contemporary used to refer to market oriented reform
policies such as, Eliminating price controls, deregulating financial markets,
lowering trade barriers and reducing state influence in the economy especially
through privatization and austerity.
Approach to development
The theory puts forth basis of society development with the ideas suggested neo
liberalization theory includes the following.
To prevent exploitation or to ensure social fairness and equality these is need for
the state to intervene and regulate.
There is need for the protection of group rather than individual interests for
example that might be achieved through robbery of groups or states interventions
that protect national interests via tariffs or subsidies
For the purposes of this paper, the concept of well-being refers to the contentment,
happiness or satisfaction of individuals. It is similar to the economic notion of
‘utility’ (Bentham, 1879). Well-being is a function of the ability of people to make
informed choices and live the type of life that they choose. This is because for the
most part, people will choose to live a life that makes them satisfied or contented.
The theory further puts it clear that political economic practices should propose
and ensure that human wellbeing can best be advanced by liberating individual
entrepreneurial freedoms and skills within an institutional frame work
characterized by strong private property rights free markets and free trade.
Therefore the role of the state is to create and preserve an institutional frame work
appropriate to such practices
The economic doctrines in neo-liberalization provide an important plank in
government economic policy their commitment to social welfare human and social
rights.
Major economic policies in neoliberalization
Deregulation: This is the reduction of government power in a particular industry
or removing government legislation and laws in a particular market. It often refers
also to removing barriers to competition. This generally improves on innovation
and improved quality.
Individuals will have more money to spend on other items due to more
discretionary income.
Lowering trade barriers
Lowering trade barriers means free trade and that a country can import and export
goods without any tariff barriers or other non-tariff barriers to trade.
Free trade enables lower prices for consumers increased exports benefits from
economic of scale and a greater choice of goods since trade is an engine of
economic growth.
We study the recent 2007–2015 period, during which the government
experimented with various types of targeted price controls in supermarket
products. These price controls were meant to curb inflation, which rose from 10%
in 2006 to over 35% in 2016 (according to unofficial estimates).7 these controls
focused on food and beverages, which constitute nearly 40% of the CPI basket.
Privatization
Privatization: the term is used to mean the sale of public utilities to private concern
.the contract operation of a public utility or service by a private entity is known as
privatization.
Privatization has benefits as it leads to:
Improved performances of public services providers, services provided by the
public agencies are effective and efficiency is seen to take place in different
societies. This fosters accessibility of different services.
Private companies have a profit incentive to cut costs and be more efficient lack of
political interference as it is argued that government makes poor economic
managers.
Government will raise more revenue from the sale selling states owned assets to
the private sector raises significant sums for the government.
In conclusion, the Neo liberalization theory as a development theory lays down
significant approaches to development that can be put in place to ensure the
development of societies across the globe.
Characteristics of the theory
Many characteristics and definitions are attributed to neo liberalization it appears
as a complex phenomenon. Below are the characteristics of the Neo liberalization
theory.
Neo liberalization emphasizes the switch of economic power from public sector to
the private sector. It is therefore commonly used as an epithet, with predictable
damage to civil discourse.
Neo liberalization places focus an economic growth over other concerns. It argues
that this is beneficial to society at large despite the fact that it tends to ignore
environmental constrains and other social issues.
Neo liberalization also advocates policies like an individual liberty, free market
and free trade, freeing an economy by eliminating the intervention of the
government, government regulations and barriers. David (2016)
Neo liberalization emphasizes the free flow of capital and labour, flexible labour
markets, with open boarders preferably as capital requires cheap labour in the form
of immigrants Paul (2014).
Paul puts it forth and lays another characteristic as being the economic
restructuring. This can be implemented using violent or repressive means.
Limitation of Neo-liberalization theory
Given their approach to development, Neo-liberalization theory still faces some
weaknesses that include the following.
Because of neo-liberalization, the distribution of the income between rich and poor
is still unequal and widens the disparities between the rich and poor, for example
skilled workers will be in a position to command higher wages, but low skilled
workers in flexible labour markets are more likely to see stagnant wages.
Firms with monopoly powers can increase producer surplus at the expense of
consumers.
Advocating the use of free markets in areas, such as health and education is
misplaced because by nature these are public services, which are not subject to the
same profit motivation.
The growths of financial flows from capital deregulation has not necessarily helped
economic development, but instead have contributed to increased financial
instability. This has caused wider economic shocks.
In conclusion, the Neo liberalization theory as a development theory lays down
significant approaches to development that can be put in place to ensure the
development of societies across the globe.
REFRENCES:
Friedman, M. (1962) Capitalism and Freedom, Chicago, University of Chicago
Press.
Marx, K. (1962) ‘Critique of the Gotha Programme’, Marx-Engels Selected
Works, Volume II, Moscow, FLPH, pp. 13-37.
Marx, K. (1976) Capital, Volume One, Harmondsworth, Penguin
Smith, A. (1910). The Wealth of Nations, 2 Vols, London, Dent
David M, (2016). Political science, University of Toronto
Paul, S, (2014). Identifying characteristics of Neo-liberalization, Birkbeck,
University of London
