Neoliberalism in the Latin America (Essay Sample)

Name Instructor Course Date Neoliberalism in the Latin America Political, social and economic environments differ across the world. Countries use these environments to formulate laws and apply different philosophies. Philosophies utilized in a given region determine how countries interact with the rest of the world. The social and economic status is determined by the way political environments are determined. Societies depend upon political and economic philosophies to position its success within the international front. The Latin America has been over the centaury a center of political and economic interest from world elite nations. The peripheral nations have utilized the region for personal interest. The region has reverted to neoliberalism approach to deal with their political and economic policies. Neoliberalism has had social and environmental cost with the approach changing the manner in which the Latin America interacts with the rest of the world. The industrialization and adaptation of the international standards by the Latin American states represents the Neoliberalism approach undertaken by region states. The move was triggered by the downfall of the economy. The approach allowed free trade and conformation to the international market. The move ensured the international market had access to the economical opportunities in return offered employment and other economical benefits to the region. According to Scott, the positive relation created by the international relations had long-term effect to the social and economic environments (180). The changes to the economic rules ensured that markets are accessible to the external environment. The government relied upon advice from the regulatory bodies and changed their economical and social policies to allow investors into the region. The positive relations with the rest of the world ensure free markets and economical benefits created by the Neoliberalism approach ensured access to the international incentives. The approach benefited the region’s economic landscape. The economic landscape in the Latin America has changed and their interaction with the external environment reviewed. According to Rudra (2002), the Latin American nations suffered a big economic blow over the last decade. This allowed the region to transform their states based approach and adopt neoliberal approach. This hence meant that internal tax laws where reviewed to meet the international standards. The move was to attract multinationals and discourage foreign investors from moving out of the region. The tax reforms had a negative impact on the revenues collected by the state (414). The approach ensured a positive relationship with the international community but affected the local investments and in turn meant that the region would depend on foreign element on matters economics. The local population remained sideline and the international community become a determinants. According to Espinal historical policies were the reason as to why the Latin American region had suffered economic downfall. Countries like Chile and Peru had felt the effect of the falling economy. The effect was attributed to failures of the internal economic policies (30). Changing policies to conform to the international market become a turning point to this region. Countries had to depend upon the international market to enhance growth. The neoliberal approach allowed the government to adopt international laws and align their policies on a free market approach. This allowed the country access to the international market hence acquiring goods at an international market. The approach allowed the countries access goods. According to Dietz (1989), the countries were able to access OPEC member states and buy oil at international market prices. The move allowed more imports hence filling the deficit. Allowing multinationals was aimed at increasing employment and borrow from the World Bank and other core states to supplement the budget. Chile respects changes in reforms and the nature in which they have affected the economy and improved international relations. The open market approach allowed investors to venture into the Chilean market and in return, offered employment opportunities (Scott 170). In terms of economic and political mileages, the country enjoyed economical support from other international regions. The late 20th century saw the country undergo economic difficulties. The region suffered due to failed regulation. The IMF and the development organization suggest measures that allowed the region transform (174). The positive relation with the international community ensured that firms ventured into the country hence allowing the government to gain from the proceeds. The interest rates and other monetary policies were determined by the international organizations and multinational agencies. The move caused reforms within the internal market hence allowing the international market determine the economic factors. The reforms within the economical landscape meant that the region depends on international borrowing. The fact was triggered by economical reforms that reduced internal revenue collection with local based products and other outputs depending on other markets to determine prices. The region lost their control of the local market hence affecting revenue collection. The multination determines the economical approach that meant revenue and internal borrowing was determined by external factors. According to Weyland multinational rather than the external market determine the economic situation of these regions. The state control of these markets is minimized allowing other factors to determine how the market would react. The local product has no or less benefit to the local market. According to Buechler, in Brazil the lack of government control meant that firms exploit the labor environments. The workers carry the risks of the firms (241) since the local governments had little control on the operations of the multinationals. The dependency of the international environment to determine economic factors had a long-term effect of the political, social and economic environments. The multinationals and the large corporate create a bureaucratic environment with their powers being likened to those of the federal government. The effect determines what goods to buy and supply to the market. Price determinants favor these multinational hence affecting small domestic markets. According to Buechler self employment and small and medium size enterprises bares the largest loss. The market is flooded with foreign product hence affecting produce from local ventures. The agricultural products and other local outputs are affected due to the limited market. The products from multinationals flood the market hence they set price that favor their profit objective. The lack of government controls creates unfair competition limiting locals from benefiting from their efforts. The nature of the economy due to the approach adopted makes the region overdependence on the international market in that local policies are ignored. The common market created by the region labor and trade organization favors the international firms and fails to protect the local market and producers. In essence the effort to improve productivity and reduce, operational cost firms seek to venture in models that increase revenue. According to Weyland, the move to allow international firms due to the neoliberal approach, has affected the employments. First the small enterprises lack market and labor source due to the actions by multinationals that aim at ensuring their firms remain viable in the market. The multinational outsource labor due to the international market orientation. The local population benefits from limited employment opportunities. According to Buechler the two social classes presented in the city of Sao Paulo represent the effect of unemployment due to the industrialization policy enhanced by the multinationals (239). The economies of scale enables corporate to outsource labor as a means of minimizing production and operational cost. The move denies the country opportunities to explore employments within firms. The bureaucratic nature of these firms allow them deploy tactics that will ensure their survival in the market and reduce competition from local firms. The lack of the government-controlled model limits the local employers from venturing into business dominated by multinationals. The lack of labor laws ensure the market is flooded with cheap labor while the cost of living remains high. Unemployment creates a social problem within the local community. The social environment is an essential element within a region. Social parity will determine whether a country’s approach has effectively transformed the lives of its citizen and position itself along the set international standards. According to Buechler social problems are triggered by the countries access to resources and government policies that allows the local market to thrive while ensuring a positive external mark...