Dependency Theory and Neoliberalism PDF

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Essay about dependency theory and neoliberalism...

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It can be shown that the Philippines has significantly reduced its independency by examining contemporary circumstances in the country and comparing them to colonization events that occurred in the past, as described by the dependence theory. As a result of the growing and unstoppable dominance of transnational corporations over our national economy, we are witnessing the impossibility of repaying our international debt, the increasing pauperization of the rural masses, and the total degradation of our marginalized urban poor, to name a few social realities that we are currently confronting in the country, The country's present economic development is still low to moderate, and the government has a long history of requesting assistance from developed or advanced countries. Some countries are prepared to assist the Philippines, but we've grown so accustomed to it that it may be assumed that we're relying on others to save our own country at this point in our history. Our government is certain that our ability to ride on the coattails of multinational firms will be critical to the long-term viability of the country's economy. Heroes have battled against the Spaniards in the past, during the colonization of the Philippines, in order to reclaim the country. They fought for the country's independence because they did not want to rely on any of the countries that had colonized the Philippines in their quest for independence. Today, it is becoming increasingly clear that permitting our societies to become further entangled in the vicious cycle of foreign capital, technology, and markets is not, and never has been, the answer to our plight from perennial underdevelopment. Neoliberalism is a political and economic policy model that aims to shift control of economic elements from the public sector to the private sector. It is a political and economic policy model that covers both politics and economics. (Kenton, 2020) Many neoliberal policies aim to improve the functioning of free market capitalism while also attempting to minimize the size of government, the scope of government regulation, and the scope of public ownership. It can be broken down into three main types of expressions, including an ideology, a method of government, and a policy package (Foucault et al, 2008). The characteristics of neoliberalism are privatization, deregulation, free trade, reduction of public expenditure and elimination of the public good. Privatization entails the transfer of ownership of all state-owned enterprises and businesses to private investors. The goal is typically to increase efficiency, as the private sector is seen to be more efficient when it comes to running enterprises. Deregulation refers to the reduction of government regulation on economic activities such as trade or the imposition of taxes on specific types of companies. Companies will be able to become more profitable as a result of deregulation, which will also improve the overall quality of running their company. Globalization and increased openness to foreign investment and trade are characteristics of free markets. Economic growth is projected to emerge as a result of complete freedom in the movement of capital between different geographies, as well as greater and cheaper access to resources. The majority of government spending is directed toward the health and education sectors, as well as toward infrastructure development and maintenance. People are motivated to work for their individual wellbeing rather than thinking about the well-being of society as a whole, according to a concept related to the prior statement. In some cases, neoliberalism results in the elimination of welfare and social programs, which has a negative impact on the lowest portion of the population (Corporate Finance Institute, 2021) In the Philippines, neoliberalism first appeared in the form of the World Bank's structural adjustment program imposed in the early 1980s in an effort to strengthen the economy's capacity to service its massive external debt. The early 1980s economic crisis was exacerbated by structural adjustment, whose contractionary effects were exacerbated by the onset of the global recession. The crisis was the country's worst since World War II, but the role of neoliberal economics in precipitating it was obscured by the fact that it coincided with the deep political crisis precipitated by Aquino's

assassination in August 1983. Most Filipinos blamed Marcos for both crises (Bello, 2009) When it comes to the Philippine economy, the presence of neoliberalism would be extremely beneficial in terms of increasing or improving the country's economy. Considering the characteristics of neoliberalism: shifting ownership of state-owned sectors such as hospitals and banks to private investors might boost the efficiency of these sectors because it can result in more favorable returns for the country. Allowing greater freedom in the movement of capital between the Philippines and different geographies, as well as greater and cheaper access to resources where people can have greater privileges of purchasing or receiving, helps to improve economic growth. Being open to foreign investment and trade, or having fewer government regulations in conducting economic activities, helps to improve economic expansion as more money is coming in from selling cheaper products of different countries. However, there are some disadvantages linked to the presence of Filipino citizens in the country. With neoliberalism, profits will take precedence over the public welfare. The Philippines is still grappling with poverty, and this may only exacerbate the suffering of the poor even further, especially when public expenditure is reduced and there will be an even larger lack of access to healthcare and education. Individualism will take precedence over consideration of the entire Philippine society, and as a result, corrupt Philippine officials or wealthy individuals will become even more of a major issue, as they will be the ones reaping the greatest benefits from neoliberalism and thus become even more of a problem. Our country's overall economy may grow, but the quality of life for its citizens will continue to deteriorate. Neoliberalism, according to dependency theorists, is just a technique of opening up countries in order for them to be more easily exploited by international firms. Although neoliberalism and dependence theory are two distinct concepts, both are occurring in the Philippines at the same time and can be interconnected with one another. Knowing all of this, it is clear that they are not a significant aid in the development of the country, and that they bring more disadvantages than advantages. Furthermore, having knowledge of this, as well as the difficulties that the country is experiencing and will continue to face, can provide us with desire to participate and assist in any way that we can....