Student number :64983161

Module code :soc 2602

Unique number :628505

Date : 07 june 2021.

Neo-liberalism is an economic philosophy that conceptual describes a move towards free markets ,
capitalism and a division from government ownership. The typical policies associated with Neo-
liberalism include free trade, globalisation, privatisation and change in government spending to
stimulate the private sector.

It is generally associated with policies of economic liberalisation including privatisation, deregulation,

globalisation, free trade , austerity and reduction in government spending in order to increase the role
of private sector in the economy and society; however, the defining features of neoliberalism in both
thought and practice have been the subject of substantial scholaraly debate. In policy making ,
neoliberalism was part of paradigm shift away from the prevailing kynesian economic consensus that
existed prior to the persistent stagflation of the 1970s.

As an economic philosophy, neoliberalism emerged among European liberal scholars in the 1930s as
they attempted to revive and renew central ideas from classical liberalism as they saw these ideas
diminish in popularity, overtaken by a desire to control markets following the great depression and
manifested in policies designed to counter the volatility of free markets and mitigate their negative
social consequences. One impetus from the formulation of policies to mitigate free-markets volatility
was a desire to avoid repeating the economic failures of the early 1930s , failures sometimes attributed
principally to the economic policy of classical liberalism.

In post - 1990 era has been marked by both continuity and disconuity. The decade old history of the new
south African reveals a bizarre unravelling of the revolutionary dialectic . For the masses of South Africa,
prejudiced under an apartheid regime: new prejudices, new apartheid and more importantly new
resistance. Not in significantly. The new is intensely spatial. It is in poor households and communities
where the impact is great the neoliberal spatial fix . The neoliberal spatial fix also act as a barrier to
capital accumulation bearing the seeds for it own destruction as community transformed these spaces
into subject for social mobilisation.

Neo-liberalism has radically shifted the african public health space in the last two decades. Most sub
suharian countries drastically reduced their health care budgets following the international monetary
funds (IMF) and the world bank structural adjustments programmes (saps) directive decentralised
health care decision making and funding , resulting in wide-scale privatisation of health care services
delivery and insurance which led to structural segmentation and fragmentation. Saps have had myriad
negative impact of African economies , including but not limited to inflationary pressures, the
marginalisation of the poor in the distribution of educational and health benefits and reduction in
employment.

As the main impetus of the SAPS was to reduce and ration expenditure, structural adjustment in the
health care sector slashed public spending on primary health care and aided the privatisation of health
system and services. For example in Kenya, the Bamaks initiatives of 1987 anchored cost - sharing as a
central tenets of public health policy, in which patients were required to pay for nearly all cost of
diagnosis and treatment. Outside of the emergency. Patients were required to provide proof of
payment before medical services are availed . By channeling funding to narrow medical interest,
structural adjustment policies resulted in an uneven medical land scape with a few prestigious fields
surrounded by poorly resourced departments.

The rolling out of neoliberal policies has led to plethora of harmul socio economic consequences,
including increased poverty , unemployment and deterioration of income distribution. Neo-liberal
policies have contributed to the privatisation and individualisation of health care , resulting in growing
health inequalities . By providing health cares, education , electricity, water and housing , neoliberal
argue that private institutions are more capable effective and efficient in providing social services.

Neo-liberal fiscal austerity policies decrease public expenditure through cuts to central and local
government budget, welfare services and benefits and privatisation of public resources resulting in job
losses . Mass unemployment is perhaps the most obvious and shocking contemporary manifestation of
the consequences of neoliberal austerity programmes. Free trade , privatisation and lack of spending on
health care and education, neoliberal policies have not always been the choice of poor countries. In
many cases , they were effectively forced onto them through a process known as structural adjustment.

In the 1980s the international monetary funds and the world bank , headed by Europeans and north
Americans lent money to many poor countries on condition that they pursued a rigid track of neoliberal
policies. These including privatisation services, cutting regulations, opening markets to foreign trade
and slashing government spending on health and education. This was a disaster. It drove poor
economic performance and increased poverty in south destroyed the provision of health services; and
propelled inequalities, resulting in poor health for the most impoverished. It also generated a man
which posits an individual lifestyle as the cause of poor health, deflecting attention wide political,
economic and social causes . The result were devastating. It found a worsening of povery and
inequalities with the greatest impact on the poorest , especially women.

Instead of delivering growth , some neoliberal policies have increased inequalities and have not
delivered as expected. Neo-liberalism, a policy model that advocate the control of economic factors to
the private sector from the public sector, has been a dominant ideology since the 1980s . It rest on two
main planks .firstly by increased competion that is achieved through deregulation and the opening up of
domestic markets and, secondly, through privatisation and limits on the ability of government to run
fiscal deficits and accumulate debts.

The economist , applauds the neoliberal agenda for a number of things , it also outlines two aspects of
the neoliberal agenda that was failed to deliver . These include capital account liberalisation, also
known as removing restrictions on the movement of capital across borders and fiscal consolidation,
sometimes referred to as austerity the increase in inequalities engendered by financial openness and
austerity might it self undercuts growth, the very thing that the neoliberal agenda is intent on boosting.

In the past twenty three years the political economy of south Africa has undergone massive
transformations , dimensions of which of which already been sufficiently attended. There has been a
tremendous amount of evidence pointing to the persistent and increasing levels of poverty and
inequalities in the country in the past few years . In a paper based on the survey conducted under the
auspices of the centre for social sciences. Research titled : poverty and inequality after apartheid . The
renowed sociologists jerem sikings (2007) note that, despite steady economic growth in the early years
of democracy, income poverty rose and income inequality has probably grown , and life expectancy
decline . He pins the proximate causes of these developments on , among other factors , persistent
unemployment, an unequal education system and social safety net that , though wide spread,
nonetheless has large holes .

Economically, the neoliberal form of capitalist development has been defined by perstently low levels
of economic growth which in turn translated into stagnant levels of new wealth formation in the form of
investment in new productive assets

DECLARATION OF ORIGINALITY.

1. I understand what academic dishonesty entails and i' m aware of unisa's policies in this regard.

2. I declare that this assignment is my own, my original work . Where i have used someone else's work i
have indicated this by using the prescribed style of referencing . Every contribution to and quotation in ,
this this assignment from the work or works of other people has been referenced according to this syle.
3. I have not allowed, and i will not allowed, anyone to copy my work with the intention of passing it off
as his or her work.

4.i did not make use of anather students work and submitted it as my own work.

Name: nomathemba

Student number : 64983161

Module code: soc 2602

Signature :nsgumede

Date: 07 june 2021.

References.

1.https://www.ncbi.nlm.nih.gov

2.https://peoplesdemocracy.in

3.https://link.springer.com.

4.https://www.investopedia.com.

5 Jansen Z. Globalisation and social change in south africa.

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