Neoliberalism and Democracy

by Alex Afouxenidis, National Centre for Social Research, Athens, Greece

Neoliberalism is based on the idea of ignoring fundamental human needs. The success of neoliberal political strategies rests on a mixture of rhetoric and control of democracy’s major local and global institutions. It is also based on the erosion of the key actors and institutions that are the main underpinnings of contemporary democracies, such as pressure groups, civic organizations, and educational institutes. In neoliberalism’s economic sphere, economic growth does not need to translate into growth of equality. Considering rising social, economic, and political inequalities, we are looking at abuse being taken for granted.

Understanding the Political Shift

The pervasive counter-democratic ideological force of neoliberalism has had a deep impact on people’s lives, identities and beliefs despite its obvious failure to sustain any meaningful sense of ‘economic growth’. This is evident in many regions across the world where economies are being re-structured and reformed generating greater forms of inequality and limiting political freedom. Political crises have become everyday occurrence for many nations. Governments are in a continuous state of instability and many turn to (semi?) authoritarian rule in order to retain power.

Market idealization is not working: it has generated profound constraints on people’s liberty and self-determination.

As one reflects upon the countless analyses and informed criticisms on the impact of neoliberal ideology and strategy, it becomes increasingly clear that the main constitutive element of this sort of ‘philosophy’ is related to the idea of ignoring fundamental human needs. This conceptualization has generated a rupture with respect to western classical liberal discourses such as those, for example, put forward by J. Locke, J.S. Mill or J. Rawls. For, even though they strongly suggested personal autonomy, they equally forcefully reflected upon the idea that if the needs of individuals are not adequately met then liberty will be limited.

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Elites care about inequality, but probably not in the way that you think

by Matias Lopez, Universidad Católica, Chile

A survey of over 800 elites in six Latin American countries reveals that they acknowledge economic inequality as a problem, but see little incentive to reduce inequality. The elite from stronger and more stable democracies tend to be more aware of inequality as a political problem. Yet they do not view equitable income re-distribution as the answer.

That a tiny elite accumulates excessive wealth and power prompts concern about the future of democracy. We know from several studies that this inequality may generate conflict and support for non-democratic leadership — a perilous situation recognized by citizens of the United States and Europe. But what do elites themselves think about the risks of inequality? Do they feel comfortable living with these risks, or do they feel worried about them? And if they feel worried, what are they willing to do about it?

To answer these questions, Latin America provides a very useful set of cases. Many large and durable democracies in the region, such as Argentina, Brazil, and Mexico, have high levels of economic inequality even though this inequality creates urban violence and social unrest. Extreme inequality in a democracy is a problem for average citizens because it puts in doubt Lincoln’s principle of “government of the people, by the people, for the people.” Meanwhile, elites also have good reasons to fear inequality as they are clearly impacted by the political turmoil and the social violence that can follow.

I looked at the University of São Paulo survey conducted in six Latin American countries of over 800 members of the elite in the realms of politics, business, and civil society. I found out that most of the elite share the usual concerns about inequality and democratic stability.

But the relationship between concern and action has not to do with inequality itself, but with the strength and stability of democracy.

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