To burst the myth of neo-liberalism
To burst the myth of neo-liberalism
Liao Yan Published: 2009-06-09 07:38 Source: Guangming Daily
Currently, the international financial crisis continues spreading.
The crisis revealed the impact of the global real economy of the community, the
economic recession in many countries, social stability, a great challenge, significant
changes in the world economic order is a foregone conclusion.
The crisis did not come by chance, the initiator is in the past 30 years known as the
&quot;new liberalism&quot;, &quot;economic liberalism&quot;
and &quot;economic fundamentalism&quot;,
&quot;Thatcherism&quot; or &quot;Chinese
Washington consensus &quot;and ideology-driven capitalist development theory
and policy, collectively referred to as neo-liberalism.
Neo-liberalism on the 70 who have to cope with the stagflation problem since the rise
of prosperity in the United States and Britain and other developed countries
increasingly on the market economy has a certain note, which reflected the
self-regulating capitalist relations of production capacity. As the
&quot;Washington Consensus&quot; of the formation, it changed into an
economic model of international monopoly capital, the political agenda and cultural
declaration as to achieve prosperity is rich and strong marketing recipe, in fact, harm
the development of the countries in the world is more to the greater. The financial
crisis is serious harm to their overall outbreak.
Governments and people struggling to cope with the financial crisis, caused by
digestive consequences of neo-liberalism, but also to gradually see the true face of
neo-liberalism. Neo-liberal myth is shattered.
Full privatization is the prerequisite and basis of neo-liberalism.
To defend private ownership is the logical starting point for neo-liberalism. They
insist that the private economy since ancient times, there will be eternal. The greatest
&quot;benefit&quot; is free for all to provide the most important guarantee.
Each person and each family the freedom to pursue the most important is economic
freedom. Private enterprise is the realization of individual freedom, economic
freedom and economic efficiency of the basic premise and foundation. Public
property must be abolished and all property should belong to the private sector.
Privatization of public services should be universal, public and social spending should
be reduced. To be reliable, rational, sustainable capitalism, corporate profits,
Where in the new liberalism, individualism is the cornerstone of a comprehensive
theory of privatization. They not only uphold the market economy, everyone is
&quot;rational man&quot; assumption, but also more and more people
share the desire to strengthen or even to obtain the maximum of material comfort as
the full meaning of human living and the highest goal, that an increase in personal
wealth , is an individual duty, it is the real spirit of capitalism.
Under the banner of neo-liberalism in the 20th century, since the 80&#39;s, the
United States, the United Kingdom led many Western governments push for
privatization or nationalization. Sale of state-owned enterprises to private and foreign
capital to mergers and acquisitions by state-owned enterprises, reduction or
elimination of government control of private enterprises; give large companies,
especially multinationals, economic power, to make them more wealthy; reduce the
personal income tax and corporate profit tax tax rate to stimulate social activity;
implement monetarist single rule to reduce money supply growth rate, higher interest
rates, tightening credit to control inflation; actively support other countries in the
implementation of privatization policy, privatization of action vigorously.
Privatization process, the small number of countries outside the surface of prosperity
and a vibrant, most countries appeared in the small and medium large number of
bankruptcy, workers declining wages, rising living costs, the gross national product
Quanmian shrinking economy into the abyss of a prolonged recession, as well as start
another wave of nationalization. Privatization stimulating the so-called
&quot;social creativity&quot;, but also by the release of the best interests of
the individual trend of &quot;reasonable&quot; demands. Easily worth
hundreds of millions of dollars in some countries the sale of state assets, there is a
10% rebate. Triggered the current financial crisis is an important cause is the financial
industry &quot;elite&quot; ongoing fraud-style financial innovation, full of
blame for the huge profits and debt risks. When the normal economic order can not
afford to &quot;lie&quot; of the weight, the social credit collapse, crisis and
recession is inevitable.
In the history of the development process, the private ownership of the means of
production for economic development will play an active role in, but not absolute,
even if the greed and extreme individualism, the same as the spread of wildfires. The
higher the level of economic and social development, the greater the need the
community to provide more public goods and services. The closer economic ties, the
more need to cooperate, the more need for interdependence, the more need for
&quot;collectivism.&quot; Neo-liberal privatization, the claim against the
essential requirements of development of productive forces, intensified the private
ownership of means of production and production of social contradictions, will go
back to social development.
Complete market is an important part of neo-liberalism.
Neo-liberal market mechanisms to Adam Smith theory to the extreme, as long as the
freedom to rely on market transactions will automatically achieve social and
economic equilibrium of full employment. Act according to free market mechanisms
as long as all socio-economic issues and personal freedom can be ordered to be
resolved. Let the market mechanism to regulate allocation of all social resources, both
private goods or public goods should be regulated by market mechanisms and
arrangements. States should not intervene in the market should only be concerned
about the money supply. Government&#39;s basic role is to act as a market
&quot;judge&quot;, functions must be minimized.
The new liberal capitalist society, especially the relationship as the market is
unlimited, that all the external obstacles that impede the expansion is temporary and
will be overcome. They do not see, on the economy itself, the market is not
omnipotent. Although the market can achieve an effective and rational allocation of
resources, but it can also cause great waste. Moreover, the contemporary world
development goals are not only economic growth but also to achieve full employment,
price stability, the promotion of equality of income and so on. The market mechanism,
the main goal of economic efficiency as a single service, can not meet these needs are
often difficult goal of reunification. Only the government through macro-control, in
order to maximize coordination for achieving multiple objectives. The more modern
economic development, macro-control more important.
Under the banner of the new liberalism, the Reagan Administration took office, he
proposed the establishment of a &quot;small government&quot; to lift the
labor market and gasoline price controls, crack down on trade unions, strongly against
the U.S. dollar non-interventionist policy. They also have many social and public
services to the market to take care of, the salary levels of workers to the market,
continue to lower the minimum wage in order to ensure markets become more active.
In 1999, the U.S. government replaced with a new law to control finance,
&quot;Glass - Steagall Act,&quot; an end to the banking, securities and
insurance separate operation with separate supervision situation. Bush administration
and even try to remove the &quot;New Deal&quot; system&#39;s
crown jewel - the social security system. Many countries in the new liberalism that
&quot;the other side leading to a better future&quot; under the guidance of
the perfect theory, also went dancing with the United States, allowing the market to
manipulate the economic and social development.
Of course, neo-liberal policy in favor, after all, can not be equated with the realities of
contemporary capitalism. State intervention and Mei You completely stopped, some
Western countries even increased social welfare spending. However, these are far
from complete elimination of the negative consequences of market-oriented ideas.
The past 20 years, is in the &quot;invisible hand&quot; effect, the decline
in social spending power, the global gap between rich and poor widening. World Bank
report in 2004, 6.0 billion people worldwide, 10 million people to grasp 80% of
global GDP, the other 50 million people live on less than one U.S. dollar a day.
&quot;Wall Street Journal,&quot; once again pointed out that the 2007
global accounts for 0.7% of people with more than third of the world&#39;s
wealth, the world has lost its balance. Although the Reagan Administration continued
to achieve unprecedented &quot;prosperity&quot;, but cause its sagging
manufacturing sector, the fiscal deficit jumped from the 50 billion to 1.5 trillion. 30
years of neo-liberal globalization and, ultimately, an increase of 200 million poor
people in this world. Cruel reality of the awakening of countries continue to pay
attention to social welfare-oriented political parties return to power in many countries.
Modern economic development, macro-control is a balanced and orderly development
of regulation of the economy, it is an important duty of the government. United States,
Britain and other Western countries in financial crisis, restore macro-control tools
have to be forced to rescue the market, abandoned, betrayed the new liberalism, is the
most direct proof.
Market allocation of resources plays a fundamental role, but there are obviously
inadequate. Market mechanism into full play the enthusiasm in the role of economic
development is reasonable, necessary, but it must not be exaggerated to
&quot;all&quot; state. Neo-liberalism do not see the &quot;market
mechanism&quot; and &quot;market Almighty,&quot; the difference
between not seen or bothered to see that economic development must safeguard the
fundamental interests of the majority, moderate macro-control. The development of
the working people do not respect the dominant position, contrary to the law of
development of market economy and let it support the &quot;invisible
hand&quot; inevitably lead to periodic crises wanton activities.
Maximum liberalization is the core of neo-liberal ideas.
Maximum liberalization, mainly refers to financial liberalization, trade liberalization,
investment liberalization, the so-called &quot;Washington consensus.&quot;
Financial liberalization is to break the international financial barriers, the
implementation of interest rate, the exchange rate, current account and capital account
fully convertible under the Currency and open financial markets, financial
deregulation, financial innovation acquiescence. Trade liberalization is to remove
non-tariff barriers, a low tariff rate. Investment liberalization, the market is fully
opened to foreign direct investment into the abolition of obstacles.
The crucial point of maximum liberalization is implemented under the private
multinational companies dominate the global free trade and free finance, maintenance
of a free economy under the auspices of the United States, oppose the establishment
of new international economic order. For developing countries, liberalization is
nothing short of completely open their doors to give up the independence to set up
and the right to develop the national economy, despite the excess products of
developed countries to seize their market. In the financial, technical and managerial
aspects of competitive advantage, enterprises in developing countries can easily be
controlled by foreign capital in a dependent position while. Full liberalization of the
financial sector, more international speculative capital freely in and out, attacks on
national currencies opportunity.
Under the banner of neo-liberalism in the 20th century, 80&#39;s, most of the
western countries compete for capital freedom struggle. Them to the liberalization of
economic policies as a strategic tool, and then there is the destination of these tools
promoted as the national ideology. In the output so-called freedom, democracy,
human rights values and the &quot;eradication of poverty&quot; of sugar,
under high pressure through trade sanctions or other means to force other countries to
take similar measures, a free trade policy, weakening the economic sovereignty of
developing countries. At the same time, Western powers has his or her own economic
advantage protectionism for their own violations of freedom of others, but deprived of
the freedom of others. The United States to actively create &quot;strong
dollar&quot; strength of financial liberalization, opening up the
country&#39;s financial markets has run into open country involved in a large
circle of international capital to meet their own
&quot;super-consumer.&quot; Wall Street thus reap the benefits, to obtain
monopoly returns. For this reason, the United States on the free market economy,
defend and maintain spare no effort.
Maximum liberalization more than freedom, but a disaster. Developed and developing
countries, gradually increasing the number of trade friction, is naturally vulnerable
developing countries. In a world of plenty, there are still millions of people in
developing countries can not afford the minimum nutritional requirements. Many
national food and energy prices, the poor will have a devastating impact. Some
&quot;transformation&quot; of Western countries has actually become a
vassal state, and their European and American banks and other national economy was
manipulated. Southeast Asian financial crisis 10 years ago, so many countries and
regions still have a lingering fear. Latin American countries, such as relaxation of
international financial regulation, there has been 10 years back. The financial crisis is
the excessive economic liberalization and the concentrated reflection of virtualization,
the direct loss of U.S. financial markets triggered the necessary controls to let more
and more derivatives, more complex forms, to promote the financial system lead to
Open economy, free trade, foreign investment is conducive to absorption of his
country capital, advanced technology and management experience, but
unconditionally, leaving no choice to enter capital is tantamount to asking for trouble
and endless, there must be appropriate and reasonable restrictions on the size.
Neo-liberalism is the new historical conditions, neo-colonialist aggression in the
world economic and political penetration of the tool. Promote the liberalization of its
absolute, but the developed countries to do everything possible to gain benefits by
deception a fig leaf, good time bad will self-immolation.
Neo-liberalism in many countries have highly respected the world, invincible, but was
hit in China.
Of the 20th century the early 90s, a representative of neo-liberalism, U.S. economist
Milton Friedman has drawn on China&#39;s reform and opening up a road map.
His &quot;sincerity&quot; to suggest that China needs a market economy;
China needs a liberalized market economy; China needs a free market economy and
privatization; the only way to achieve this goal is the full privatization. Obviously,
he&#39;s such a design does not meet China&#39;s national conditions, his
&quot;good&quot; we can not accept everything.
We have always from the primary stage of socialism&#39;s basic national
conditions, China&#39;s own way to go, as the party governing the country to
uphold the fundamental principle. Both unwaveringly consolidate and develop the
public sector, to play the leading role of state-owned economy, but also to encourage,
support and guide non-public economic development, creating a multi-ownership
economy and equal competition with each other to promote a new pattern. This
society is full of reform and development of creativity, but with the new liberalism
against the public, advocating rapid privatization of view diametrically opposed.
We adhere to the basic system of socialism market economy, combined with the
established and gradually perfecting the socialist market economic system.
China&#39;s economic system, with the socialist nature, different from the
traditional highly centralized planned economy, but also different from the capitalist
free market economy. The party&#39;s 17 major stress play in national
development planning, planning, industrial policies in macroeconomic regulation and
control of the guide. This further shows that we only use the &quot;invisible
hand&quot;, bringing the market in allocating resources to the basic role, respect
for the market, respect for the objective economic laws; also use the
&quot;visible hand&quot;, pay attention to the role of the State&#39;s
macro-control to ensure steady, healthy and rapid development, firmly resist the
neo-liberal market completely, against the views of state intervention.
We are actively expanding the breadth and depth of opening up, constantly improve
the internal and external linkage, mutual benefit and win-win, secure and efficient
open economy, strengthen and improve financial supervision and pay attention to
prevent international economic risks. This allows us to set up the new liberalism as
the cornerstone of the international political and economic order, calmly, and in the
international division of labor to benefit. As a socialist country, and protect the
fundamental interests of the people, to actively protect the rights of workers to form a
perfect socialist market economic system, the practical requirements. This powerful
check of the neo-liberal on economic absolutely free to maintain the interests of the
rich and the capital, ignoring the interests of the public policy advocacy.
30 years of reform and opening up, China&#39;s remarkable economic and
social development achievements, and today,, rapid and healthy development
momentum down, to show the world there could be Gaige and self-improvement of
socialism to create a capitalist develop faster than better miracle. Particularly in the
international financial crisis, our timely adjustment of macroeconomic policies,
decisive implementation of the proactive fiscal policy and loose monetary policy
appropriately formed to further expand domestic demand and promote economic
growth package, the implementation of total 4 trillion yuan two-year investment plan
and a series of major measures to maintain rapid economic growth, price stabilization,
structural optimization, a good situation to improve people&#39;s livelihood,
promote the resumption of world economic growth and make its due contribution to
winning the broad international community praise for the Chinese people themselves
are taking the road more confident.
China&#39;s economic reforms of the socialist-oriented market economy,
including the need to learn from Western neo-liberal economics, including market
mechanisms on the general principles and theories, but never will their ideology as the
basis for the reform route choice , not to copy the Western model. The core of
neo-liberal ideas inconsistent with long-term goal of economic development, does not
meet the basic law of development of productive forces, does not meet the value of
the pursuit of socialism with Chinese characteristics.
Gradual loss of neo-liberal markets, shattered, is a historical necessity.
All neo-liberal philosophy, has focused on the proliferation of capital, expansion,
extraction of the inherent requirement to meet the Group to seize the monopoly of
capital markets in developing countries, the depth of the global expansion needs. It
launched at the beginning, do so to ease the contradictions among the developed
countries. However, with the US-led capitalist monopoly by the state transition to the
international monopoly, it has greatly contributed to the socialization of capitalist
production with the basic contradiction between private ownership of means of
production, exacerbated by the economic organization of production and business
activities planned with the anarchy of social production, the continued growth of
social productive capacity with the lack of social spending and the principal
contradiction of workers relative poverty, exacerbated by other aspects of social
Neo-liberalism increasingly impede the development of social productive forces. In
recent decades, human society has created enormous productivity and material wealth,
civilization and progress, much more so than the previous all time. Can not deny that
neo-liberalism has also played a role. But even more to clear, its core idea is neither
new ideas nor scientific, economic and social exclusion to promote the development
of positive ideas, greatly inhibited the rational allocation of resources and market
economy, improve social welfare potential. It supports the economy of accelerated
finance, encourage transformation of the real economy to the virtual economy to
promote the interests of U.S. capital to maximize or even abandon the pursuit of
significant manufacturing advantages. In the new liberal-led countries in developing
countries to undertake industrial transfer and access to development opportunities, has
paid a distorted economic structure, to create most of the wealth of national
transferring to the international monopoly capital cost, reduced power development .
Theoretical basis for the new liberalism, the developed countries with economic and
technological power monopoly of production standards and economic operation rules,
and intellectual property protection and other means, directly limit and prevent the
development of social productive forces.
Further deepened the class of neo-liberalism, national and ethnic tensions. Under the
guidance of the new liberalism, the people within countries inequality of income and
property increased significantly. Especially in the United States, has created a high
level. Since the mid-70s of the 20th century, the United States &quot;almost all
the fruits of growth have turned into profits, while wages have not turned into
a&quot; class conflict to deepen. With the implementation of neo-liberal policies,
international economic and political exchanges friction constant escalation of the
conflict between countries, ethnic inequality in fact hard to reverse. Since the 90s of
the 20th century, more turbulent and complex world situation, and even caused a lot
of social violence in Latin America and Asian countries. Neo-liberal counter to the
historical trend of this nature, subject to extensive questioning over the world,
criticism and reflection, many of whom are scholars in Western countries have a sense
of justice, provoked the wave of the general public&#39;s resistance and national
government policy review and adjustment.
Neo-liberalism and muster the decadent capitalist ideology and hypocrisy. Under the
guidance of the new liberalism, today&#39;s successful American capitalism
from the &quot;production&quot; to &quot;consumer&quot;
change, not only by borrowing ahead of personal consumption, the country has to live
by borrowing. Individualism, consumerism and realism has become the mainstream of
social values, parasitic and decadent nature exposed. Neo-liberalism is to always
maximize the proliferation of international monopoly capital, but also make it even
more decadent values, &quot;reasonable&quot; and the universal, pains,
spare no effort in the implementation of economic globalization, promoting freedom,
democracy, human rights and reality of &quot;universal World Value
&quot;, developed to measure the global free market and human resources,
assimilate vastly different countries and cultures, to create ideas that people have no
differences, the pursuit of desire or spending habits. It is no longer the general theory
of market economy, but politics is a system of ideology, is a subversion and
infiltration. The expansion of freedom it is to change their system to enable the world
to become a vassal of the United States. This must have been awakened state and
nation wide boycott.
Bedside as the doctors of capitalism, neo-liberal advocacy is an unstable,
unsustainable development model, human society can only be led astray. With the
arrival of this financial crisis, it&#39;s a good day will do.
Out of this financial crisis, a new world order, we must say goodbye with the new
To achieve consensus, a firm commitment to bid farewell to neo-liberalism. This
financial crisis, more and more countries and people discern the face of neo-liberalism.
However, it is after all the mainstream ideology of contemporary capitalism, as the
core group of international monopoly capital theory system and values, within a short
time is not easily withdraw from the stage of history, certainly a more subtle form of
more &quot;rational&quot; Attitude unworthily known to the world. The
mastermind behind will never be easily confined their greedy desire to give up their
habit to grab the interest of many years, will certainly seize the opportunity to take the
initiative and continue to capture delicious reformist way. We must remain vigilant so
as not to suffer a new injury.
Take the present situation, as soon as possible risen up from the financial crisis.
Countries are now aboard the big ship in the world economy, the financial crisis
facing the vicious wave, towards the other side of the ship, safety is put first and
foremost task before the world. This requires all people on board together, help each
other to further strengthen their confidence, using a variety of macro-control tools, the
implementation of policies to tackle the financial crisis means to enhance the
relevance and effectiveness to resolve the crisis; to further strengthen cooperation in
keeping the national macro-economic policies -oriented line, vigorously strengthen
cooperation in trade finance, and continuously enhance the internal driving force for
world economic growth; to further advance reform, insist on a comprehensive,
balanced, progressive, effective principles, constantly moving in the international
financial order, fair, just and inclusive , and orderly development; further oppose
protectionism, to avoid the policy within the care, expand bilateral trade scale; further
support to developing countries to effectively help them maintain financial stability
and promoting economic growth, the new liberal cause of the loss caused by the
long-term abusers to the minimum.
To focus on long-term, continuing to explore the economic and social development
law. Era, the world economic globalization, political multi-polarization and cultural
diversity is an unstoppable trend, countries should shun the historical trend line,
foolhardy and back without any future. Must open up and absorbing, to achieve
sustained, healthy and stable development of their own as the eternal theme; and
protect the public&#39;s right to survival, development, coordination of
socio-economic classes and different body representing the interests of the people
must not sacrifice the interests of the basic exchange the development of efficiency or
to meet the interests and demands of minority groups; in the use of market
mechanisms in allocating resources, greater use of market prices, competition, role,
improve the economic and social development of the macro-control capacity, the
necessary economic management; exploration of suitable their national conditions,
but also with times of development path, firmly opposes any country ideological
infiltration, and earnestly safeguard national interests.
China under the leadership of the Communist Party of China will firmly take the
socialist road with Chinese characteristics, to further the scientific outlook on
development, the direction of the socialist market economy, uphold the basic national
policy of opening up, do not fear any risks, not any interference temptations is firmly
committed to reform, opening up and socialist modernization drive. As a responsible
member of the international community, China will continue to strengthen
cooperation with the international community, to promote the recovery and make its
due contribution to world economic growth, promote a more just and rational
international order towards the direction.
Break the old order and build the New World, is the common people of the world is
full of hope mission. We firmly believe that the world will eventually come together
to create a better future.