Neoliberalism: in Latin America

Overview of Theme  

Neoliberalism has existed in a number of related forms for hundreds of years, but its contemporary, orthodox form was first attempted in Chile following the overthrow of socialist President Salvador Allende in 1973. A team of University of Chicago economists, trained by Milton Friedman, worked with the IMF (International Monetary Fund) and dictator General Augusto Pinochet to completely restructure Chile’s economy, privatizing almost all public assets and violently repressing protestors and suspected sympathizers (Harvey 2005a:8; Hershberg and Rosen 2006b:4; Klein 2007:76-85; Winn 2004).  

Since the 1970s, it has expanded to become the dominant model for not only economic policies, but social and political policies as well. As such, it is difficult to separate contemporary Latin America from the birth, growth, and expansion of neoliberal economic policy both at home and abroad.  

But what is it?

Neoliberalism is often referred to in popular speech as “the free market.” David Harvey, perhaps the foremost writer on the history of neoliberalism, argues that “Neoliberalism is in the first instance a theory of political economic practices that proposes that human well-being can best be advanced by liberating innovative freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade” (Harvey 2005a:2).

In practice, this has led to “state pullback and decentralization, the privatization and marketization of almost everything, financialization and the emergence of the consumer citizen, the explosion of apocalyptic religiosities, and class consolidation and growing inequality" (Allison and Piot 2012:1).  

In essence, the state – government – should remove itself from the equation in order to allow the market to work naturally and efficiently to set prices. State-owned enterprises should be privatized, beginning with utilities and transportation and moving to social security, prisons, and health services. Under this ideology, capital should also be deregulated; that is, anything seen as a barrier to trade should be removed (Goldman 2005; Harvey 2005a; Ho 2009; Hudson and Hudson 2003).

More Than Just The Money

Neoliberalism is a form of economic organization, but what has interested anthropologists are the ways in which it has reformed people and societies. That is, in order for neoliberal systems to work, society – and the individuals which comprise it – must be figured and refigured in order to “fit” properly. Predicated on an unquestionable belief in individual freedom and individual rights, neoliberal ideological projects seek to make “subjects responsible for their own civility or savagery, development or regression, social health or disease” (Sawyer 2004:15). Individuals are then held responsible for their failure to develop, their failure to escape poverty, or their failure to get well, as systemic or institutional barriers to development or health are ignored or explained away (Biehl 2005; Biehl 2007; Harvey 2005a; Harvey 2005b; Harvey 2006; Ong 1988).  

In other words, “neoliberalism has now become a frame of mind, a cultural dynamic, an entrepreneurial personality type, and a rule of law that penetrates the most intimate relations people have with each other, state apparatuses, and their natural environments” (Goldman 2005:8).

From: Fischer, Kate. "Teaching Neoliberalism In/Of Latin America." Fieldsights - Teaching Tools, Cultural Anthropology Online, April 11, 2013, http://www.culanth.org/fieldsights/217-teaching-neoliberalism-in-of-latin-america

Ecuador in the 1980's

World context	Characteristics of the economy	External debt	Poverty and accumulation of the wealth
Prominent political events Americas ·         Ronald Reagan was elected U.S. President in 1980. Reagan pursued a hardline policy towards preventing the spread of communism, initiating a considerable buildup of U.S. military power to challenge the Soviet Union. ·         At the end of the decade, the fall of the Berlin Wall in 1989 would be followed in 1990 by the German reunification. ·         The United Kingdom was governed by the Conservative Party under Prime Minister Margaret Thatcher, the first female leader of a Western country. Under her Premiership, the party introduced widespread economic reforms including the privatization of industries. ·         She was also a staunch opponent of communism earning her the nickname 'The Iron Lady'. Electronics and computers Arcade games and video games had been growing in popularity since the late 1970s, and by 1982 were a major industry. Personal computers experienced explosive growth in the 1980s Music In the United States, MTV was launched and music videos began to have a larger effect on the record industry. Pop artists such as Michael Jackson, Whitney Houston, Duran Duran, Prince, and Madonna mastered the format and helped turn this new product into a profitable business. The Techno style of electronic dance music emerged in Detroit, Michigan during the mid- to late 1980s. Fashion Significant clothing trends of the 1980s include teased hair, ripped jeans, and neon clothing, shoulder pads, jean jackets, leather pants, aviator jackets, , skin-tight acid-washed jeans, miniskirts, leggings and leg warmers.	Economics ·         The early 1980s was marked by a severe global economic recession that affected much of the developed world. ·         International debt crisis in developing countries, reliance of these countries on aid from the International Monetary Fund. ·         Revival of laissez faire/neoliberal economics in the developed world led by the UK and US governments emphasizing reduced government intervention. In 1979 Ecuador returned to the democratic governments, there were many presidents who worsen the crisis. These presidents governed the country under the decisions and headlines of the International Monetary Fund (IMF). ·         Ecuador faced an economic crisis that last almost 30 years. ·         Inflation continuous affecting the economy. ·         Unemployment and underemployment increased. ·         Prices of exporting products decreased.	External debt increased during the 1980’s and 1990’s with international organisms like the IMF, the World Bank and several international banks.  Many private companies and banks acquired several private loans; the government took care of those and paid them with public resources.	During the 1980’s the IFM impose several economic setting according to the neoliberalism, that cause poverty, for example: ·         Increment of fuels prices. ·         Increment in public services prices. ·         Currency devaluation. Economic problems caused a low life level. There were 4 million poor people in Ecuador by that time. In the other hand bankers, company owners, exporters and importers became richer than ever in history. 20% of the population controlled 52% of the wealth in the 1990’s.

Class 5 7EGB: New Social Actors in Ecuador.

New Social Actors:	Industrialization and modernization originated big and small companies and factories which strengthened the bourgeois businessmen.  This also originated the working class, labour unions and more worker and farmers organizations. Finally the appearance of new banks gives bankers a new economic level incising their money.
Indigenous movements	These movements increased and got stronger during the 1960’s and 1970’s. They fought for equal rights and equal working conditions. Their struggle started with the agrarian reform and it is the main objective of this groups. Some examples are: ·         FENOC o FENOCIN (Federación Nacional de Federaciones Campesinas) ·         FEI (Federación Ecuatoriana de Indios) ·         FEINE (Federación Ecuatoriana de Indios Evangélicos) ·         ECUARUNARI
Pro-gender groups	These groups claim for equality and respect to de gender diversity. Homosexuals and lesbians started fighting for their rights in the 1960’s, today their groups are legal and appeared in the constitution.
Ecologists	Because of the environmental damage and contamination in Ecuador, specially the Amazon region, ecologist and environmental groups appeared to protect nature and stop the indiscriminate use of resources.  In 1971 a law to protect National parks and sanctuaries is approved, and in 1974 the first environmentalist organization is founded, “Fundación Natura”.
Theology of Freedom	To defend the right of the poorest in Ecuador was born the theology of freedom movement. The leader to this movement is Monsignor Leonidas Proaño.
Women organizations	These organizations started fighting for gender equality and equal rights. One of their main objectives was to eliminate violence to women and their families.
Other religions	New religious groups arrive to our country during the 1960’s, such as Christians, Evangelicals, Mormons, etc.
Music	Popular music and protest music arise in Latin America and Ecuador during the 1960’s and 1970’s. It has social and political lyrics. Singers like Facundo Cabral or Mercedes Sosa songs are some examples.