ABSTRACT
Economic policies are shaped by neoliberal ideas and characterized by a pronounced anti-Keynesian bias.
Arguments for globalisation, deregulation and liberalisation basically rest on the assertion that allowing market forces to operate more freely globalisation and deregulation would ultimately benefit everyone. Neoclassical economics is cited to support this claim, although even a quick look at this theory shows that present neoliberal policies cannot be logically justified by it. Quite on the contrary, this theory justifies government intervention much more readily than neoliberalism, but it is wrongly used to justify redistributive policies in favour of capital owners and the rich. Many present policies were already predicted by M. Kalecki in suprising detail as an anti-Keynesian or anti-full-employment strategy as early as 1943. Globalisation, which is the result of deliberate policies and treaties, and deregulation are tools to justify the one-sided opening of Southern economies in a way that would never be acceptable to Northern governments, and to roll back social achievements and real wages in the North. Globalisation and undue liberalisation caused the Asian crash of 1997 creating the opportunity to buy Asian firms and assets quite cheaply. The WTO system and multilateral treaties, such as NAFTA or the Multilateral Agreement on Investment (MAI) presently negotiated within the OECD, will lock-in present policies, reducing future governments’ options to change them and preventing the return of Keynesianism. To do so, democracy eagerly preached to aid recipients has to be rolled back.
