Neoliberalism: the record
Although neoliberalism has come under attack from the hard left, its economic achievements have undoubtedly created a better world for millions, even billions, of people.
Neoliberal reforms, such as reducing trade barriers, encouraging foreign investment, and liberalizing markets, have helped integrate economies globally. This integration is credited with stimulating growth in many countries, creating new markets, and enabling access to a wider variety of goods.
Countries that embraced market-oriented reforms, particularly in East Asia, parts of Latin America, and Eastern Europe, saw rapid economic expansion that coincided with significant reductions in extreme poverty. Export-driven development strategies, in particular, benefited from open global markets.
Deregulation and competition policies associated with neoliberalism have led to more providers in sectors like telecommunications, travel, and retail. More competition has meant lower prices, higher quality, and greater choice for consumers.
By emphasizing open markets and entrepreneurship, neoliberal frameworks create environments where innovation thrives. Sectors such as technology, logistics, and finance expanded rapidly under globalized market conditions, producing new products, services, and efficiencies.
Privatization and deregulation, when well-designed, have led to more efficient management of businesses that were previously state-run or tightly regulated. Competitive pressure has encouraged efficiency improvements, cost reductions, and modernization.
Liberalization of financial markets has allowed investors to move capital across borders more freely. This has helped developing countries access financing for infrastructure, industry, and modernization that might otherwise have been out of reach.
It has empowered entrepreneurs and small businesses because a focus on limited government intervention and ease of doing business reduced barriers to starting and scaling companies. This contributed to the rise of new businesses, especially in countries that previously had highly restrictive regulatory environments.
Global integration has accelerated the spread of technology, expertise, and management practices across borders. Many developing countries have benefited from technology transfer through foreign investment and international trade.
Organizations that facilitate global trade and investment, such as the WTO and various trade agreements, were strengthened or expanded under neoliberalism, promoting clearer rules and more predictable international economic relations.
Concrete examples of economic reform include China, where market liberalization, special economic zones, and encouragement of foreign investment helped China grow at unprecedented rates. Hundreds of millions were lifted out of extreme poverty during the reform era. Although China is not neoliberal as such, many of its economic opening policies align with neoliberal principles.
In South Korea and Taiwan in the 1980s and 1990s, trade liberalization and export-oriented industrialization contributed to both becoming high-income economies. Market reforms spurred competitive electronics, automotive, and semiconductor industries.
There were successful Market Reforms in Some Latin American Countries.
Chile in the 1970s - 1990s saw trade liberalization and pension privatization as part of broad neoliberal economic reforms. It became one of the fastest-growing economies in the region during this period.
Peru in the 1980s and 1990s saw deregulation and opening markets, which attracted foreign investment, and experienced booms in mining, energy, and agriculture.
Innovation booms linked to competitive markets in Silicon Valley from the 1980s onward were helped by deregulated capital markets, venture capital incentives, and minimal government barriers. Tech giants such as Microsoft, Apple, Google, and Amazon grew in this environment.
Privatization and competition in UK telecommunications brought faster modernization of networks, better customer service, and wider availability of home phone and internet services.
New Zealand’s agricultural reforms of the 1980s saw the removal of subsidies and market liberalization, which pushed the sector to become one of the world’s most efficient. New Zealand agriculture became a leading global exporter of dairy and meat.
After the fall of Communism in 1989, countries including Poland, the Czech Republic and Estonia, attracted significant foreign investment after liberalizing markets. They developed strong manufacturing sectors in areas such as autos and electronics, and integrated successfully into global trade networks.
The expansion of global supply of affordable consumer goods resulted in lower clothing and household goods prices, increased variety for consumers, and in making global brands accessible worldwide.
It’s an impressive economic record, probably unparalleled in human history.
Madsen Pirie