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CRITICAL DISCUSSION OF NEOLIBERALISM IN RELATION TO GLOBALISATION AND
GLOBAL INSTITUTIONS
INTRODUCTION
Neoliberalism and globalisation are two of the most influential forces shaping the contemporary world
order. They are often discussed as separate concepts, yet in practice they are deeply interconnected and
mutually reinforcing. Neoliberalism refers to a political and economic ideology that prioritises free
markets, deregulation, privatisation, and minimal state intervention in economic affairs. It is grounded
in the belief that human wellbeing and economic efficiency are best achieved when individuals are free
to compete in open markets with limited government interference. Globalisation, by contrast, refers to
the increasing interconnectedness of the world through the flows of goods, services, capital, information,
technology, and people across national borders. Although globalisation is sometimes presented as a
natural or inevitable historical process, critical scholars argue that its contemporary form is largely
shaped by neoliberal ideology and policies.
As Harvey (2007) argues, neoliberalism is not simply an economic theory but a political project aimed
at restructuring global capitalism in ways that benefit dominant economic elites. It has become the
dominant framework guiding global economic governance since the late twentieth century. This essay
critically discusses neoliberalism in relation to globalisation, its historical development, and its
influence on global institutions such as the International Monetary Fund (IMF), World Bank, and World
Trade Organization (WTO). It also evaluates the practical implications of neoliberal globalisation,
particularly in developing countries, drawing on Harvey (2007), Kieh (2008), Krueger (2002), and Bull
and Bøås (2012).
DEFINING NEOLIBERALISM AND GLOBALISATION
Neoliberalism is best understood as an ideological framework that promotes the expansion of free-
market capitalism. It emphasises private property rights, free trade, deregulated financial systems, and
reduced government spending on welfare and public services. It assumes that markets are self-
regulating mechanisms capable of efficiently allocating resources without significant state intervention.
In neoliberal thought, the role of the state is not eliminated but rather transformed into one that protects
property rights, enforces contracts, and creates conditions favourable for market competition.
CRITICAL DISCUSSION OF NEOLIBERALISM IN RELATION TO GLOBALISATION AND
GLOBAL INSTITUTIONS
INTRODUCTION
Neoliberalism and globalisation are two of the most influential forces shaping the contemporary world
order. They are often discussed as separate concepts, yet in practice they are deeply interconnected and
mutually reinforcing. Neoliberalism refers to a political and economic ideology that prioritises free
markets, deregulation, privatisation, and minimal state intervention in economic affairs. It is grounded
in the belief that human wellbeing and economic efficiency are best achieved when individuals are free
to compete in open markets with limited government interference. Globalisation, by contrast, refers to
the increasing interconnectedness of the world through the flows of goods, services, capital, information,
technology, and people across national borders. Although globalisation is sometimes presented as a
natural or inevitable historical process, critical scholars argue that its contemporary form is largely
shaped by neoliberal ideology and policies.
As Harvey (2007) argues, neoliberalism is not simply an economic theory but a political project aimed
at restructuring global capitalism in ways that benefit dominant economic elites. It has become the
dominant framework guiding global economic governance since the late twentieth century. This essay
critically discusses neoliberalism in relation to globalisation, its historical development, and its
influence on global institutions such as the International Monetary Fund (IMF), World Bank, and World
Trade Organization (WTO). It also evaluates the practical implications of neoliberal globalisation,
particularly in developing countries, drawing on Harvey (2007), Kieh (2008), Krueger (2002), and Bull
and Bøås (2012).
DEFINING NEOLIBERALISM AND GLOBALISATION
Neoliberalism is best understood as an ideological framework that promotes the expansion of free-
market capitalism. It emphasises private property rights, free trade, deregulated financial systems, and
reduced government spending on welfare and public services. It assumes that markets are self-
regulating mechanisms capable of efficiently allocating resources without significant state intervention.
In neoliberal thought, the role of the state is not eliminated but rather transformed into one that protects
property rights, enforces contracts, and creates conditions favourable for market competition.
