liberalism

POLITICAL SCIENCE

What is the difference between neo-liberalism and classical liberalism?

Liberalism is defined as a theory founded politically on the ordinary goodness of social beings and the autonomy of the freedom of the concerned individual. Liberalism has over time promoted the rule of law while at the same time a belief in the common man that social services will improve with time. Classic liberalism is an idealism that is committed to a limited way of governing the people through a free right to religion, speech, assembly, press freedom and a free uncontrolled market, while neo-liberalism is basically concerned with the revolution of economic policies and control of the markets as a way of governing the people. Classical liberals had an automated goal of empowering the middle and those involved in the building of the commercial entities. It also seeks to abolish policies that promoted protectionism. On the other hand, neo-liberalism encouraged a period of financial liquidity. There was also the presence of powerful financial institutions that are able to control economies and the emergence of corporate elite. This section of the society is hell-bent on control of major economic points in the world.

Classical liberalism has been keen on provision of a level playing ground for each and every individual concerned especially in the job market and the economic front. Contrastingly, neo-liberalism has been busy creating a heightened level of competition. This is a way  of providing more better services and creating a lot more employment opportunities and income –generating avenues for the elite in order to remain afloat in the market.

Explain the criticism leveled against the WTO regarding health and food safety issues, as well as issues related to intellectual property rights.

The WTO stands for World Trade Organisation.It was founded in 1995 after the 8- year Uruguay talks. WTO succeeded the GATT. Its services include trade, agriculture, and intellectual property.WTO has in the recent times come under sharp criticism for the stand it takes on some issues. These issues usually have a direct impact on the economy of the member country involved. Some of these issues have been on health and food safety. The issues that the WTO has been criticized on include: the perception that member countries importing from each other have stringent laws and decisions governing safety and protection of their people that these conditions have become barriers of free trade among these nations. Decisions geared towards protecting the environmental and national economic interests have countries and up against these guidelines provided by the WTO.

The idea that countries should not decline offering genetically modified foods to its citizens has not been as welcome. Many feel that the option of introduction of genetically modified foods should be the decision of the member country. Astonishingly, WTO has made a blanket option for all its members. The rules governing the intellectual property rights are stringent .Instead of bridging the gap between the rich and the poor member nations, these rules are set in such a way that they have in favour of the already developed countries. WTO has been consistently criticized for its reluctance to review the laws in order to enable technology transfer. This move would open up more property rights for the developing countries to venture into the property patenting world with ease.

What are negative externalities and why are they important? Explain the concept in general and in context of international political economy.

Negative externalities are those costs that are not accounted for and are not transmitted through prices. These are extra costs that are incurred on no particular party. In most cases these externalities are foreseen. They are mostly ignored because putting them into account would put into jeopardy the cost of production. This would eventually put the cost of the item being produced at a higher cost rendering it unable to find a market. Negative externalities come along with an invaluable advantage. They help in creating a free market. This is attributed by the fact that maintenance of a level playing is facilitated by a common fear of being ousted out of the market by other goods that do not put into consideration the cost of externalities. Externalities affect the international market in a number of ways especially when it comes to external exchange of trade between various state partners in trade .The presence of negative externalities makes it possible for the participating countries to control the economy politically. Political and economic ambitions aided in keeping the cost of commodities at a favorable rate for both the consumers and the manufacturers.

Ha-Joon Chang and others argue that trade protectionism should not be attacked, and instead, there are reasons it should be embraced (in some circumstances). Explain the argument, address others™ counter arguments, and eventually conclude with your view of which perspective makes the most sense.

Protectionism is the pecuniary guiding principle of limiting trade between states through methods such as prices on imported goods, preventive quotas, and a selection of other government guidelines intended to depress imports and inhibit foreign take-over of local souks and enterprises. Protection is the decree of nature, the rule of self-protection, self-development, securing the peak and best intention of the race of man. We cannot take a step in the way of development without promoting the cause mankind the world over. Protectionism is an avenue of poverty, not prosperity. It does not even protect domestic the jobs or the industries. It only aids in destroying them by hurting the export industries and those that rely on imported materials to make their goods.

Conclusion

Protectionism is a virtue that that should be embraced in the economic world so that an economy’s power is left as intact as possible. This way a people are left assured that their investment is secure under any circumstances.