The Neoliberal State

Author(s):  
David Harvey

The role of the state in neoliberal theory is reasonably easy to define. The practice of neoliberalization has, however, evolved in such a way as to depart significantly from the template that theory provides. The somewhat chaotic evolution and uneven geographical development of state institutions, powers, and functions over the last thirty years suggests, furthermore, that the neoliberal state may be an unstable and contradictory political form. According to theory, the neoliberal state should favour strong individual private property rights, the rule of law, and the institutions of freely functioning markets and free trade. These are the institutional arrangements considered essential to guarantee individual freedoms. The legal framework is that of freely negotiated contractual obligations between juridical individuals in the marketplace. The sanctity of contracts and the individual right to freedom of action, expression, and choice must be protected. The state must therefore use its monopoly of the means of violence to preserve these freedoms at all costs. By extension, the freedom of businesses and corporations (legally regarded as individuals) to operate within this institutional framework of free markets and free trade is regarded as a fundamental good. Private enterprise and entrepreneurial initiative are seen as the keys to innovation and wealth creation. Intellectual property rights are protected (for example through patents) so as to encourage technological changes. Continuous increases in productivity should then deliver higher living standards to everyone. Under the assumption that ‘a rising tide lifts all boats’, or of ‘trickle down’, neoliberal theory holds that the elimination of poverty (both domestically and worldwide) can best be secured through free markets and free trade. Neoliberals are particularly assiduous in seeking the privatization of assets. The absence of clear private property rights––as in many developing countries––is seen as one of the greatest of all institutional barriers to economic development and the improvement of human welfare. Enclosure and the assignment of private property rights is considered the best way to protect against the socalled ‘tragedy of the commons’ (the tendency for individuals to irresponsibly super-exploit common property resources such as land and water).

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
James A. Dorn

AbstractChina has made significant progress since 1978 in expanding the market, but that progress is threatened by the failure to limit the state. The critical challenge facing the Chinese Communist Party (CCP) and its leadership is to widen the range of choices open to individuals by promoting what Milton Friedman, in his 1988 memorandum to General Secretary Zhao Ziyang, called “free private markets.” Free markets require well-defined private property rights protected by a just rule of law. China has a robust private sector and private property rights are now recognized by law, but the state sector and state ownership continue to play a strong role in directing economic life.


2016 ◽  
Vol 1 (1) ◽  
pp. 85-97
Author(s):  
Moh. Ah. Subhan ZA

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim.


2005 ◽  
Vol 10 (1) ◽  
pp. 67-85 ◽  
Author(s):  
JANE KABUBO-MARIARA

This paper examines the response of herders to increased shortage and degradation of land in an arid and semi-arid land setting in Kenya, under changing property right regimes using both survey and secondary data. We argue that the responses adopted are livelihood strategies to improve herder's welfare. We explore the determinants of three different strategies: crop cultivation, investment in land improvements, and migration with livestock. We employ the probit regression framework to explain each strategy. The main findings of the study are that private property rights, educational attainment, and availability of water are major determinants of the three strategies. We recommend policies that favour privatization of existing common property resources, improve education levels, and increase supply of water in the district.


2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Moh. Ah. Subhan ZA

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim. Keywords: distribution of income, State’ role, Islamic economics


1998 ◽  
Vol 25 (3) ◽  
pp. 195-197 ◽  
Author(s):  
PHILIP DEARDEN ◽  
SURACHET CHETTAMART ◽  
DACHANEE EMPHANDU

Vandergeest (1996) suggested that the protected area (PA) system in Thailand is too large. He proposed that the state should recognize claims to private property rights within the PA system and subject remaining lands to collective property rights where villagers would be allowed to burn, cut and graze for commercial purposes. We disagree and summarize some of our concerns below.


Author(s):  
Jean-Philippe Robé

The notions of State and of the « Organs of the State » are explained in some details to distinguish their prerogatives from private prerogatives. Private property, in this respect, grants autonomy from the « Organs of the State ». It is part of the constitutional prerogatives protecting private persons against excessive public governmental encroachments. It is part of a constitutional order which combines both democracy and distrust for democracy, by limiting the prerogatives of the Organs of the State. The approach developed proposes a unitary view of the Constitution as providing for both public and private prerogatives, the first ones being exercised by Organs of the State and the second ones by legal persons which are not Organs of the State. Public and private prerogatives operate via fundamentally different rules, private property rights entitling their holders to exercise their prerogatives in a despotic manner, i.e. they can do what they want with what they have without the need to take anybody’s advice or authorization - which is the definition of despotism.


2019 ◽  
Vol 16 (2) ◽  
pp. 151-167 ◽  
Author(s):  
Meina Cai ◽  
Ilia Murtazashvili ◽  
Jennifer Murtazashvili

AbstractLegal reforms that improve the security of private property rights to land have characteristics of a public good with dispersed benefits. However, nothing ensures that the state will provide property protection as a public good. Some states provide property protection selectively to powerful groups. Others are unable to provide property protection. In this paper, we argue that whether the state provides property protection as a public good, selectively, or cannot establish private property rights depends on the following features of politics: political stability, government capacity to administer and enforce private property rights, constraints on political decision-makers, and the inclusivity of political and legal institutions. We illustrate the theory using evidence from reforms that increased opportunities to privately own land in the US from the late eighteenth through nineteenth centuries, selective enforcement of land property rights in China, and the absence of credible legal rights to land in Afghanistan.


2015 ◽  
Vol 11 (2) ◽  
Author(s):  
Maghfur Ahmad

This research study Esposito views about Islam's rejection of capitalism. Background of this study is his book What Everyone Needs to Know About Islam, section "why does Islam reject capitalism?". Given the very broad spectrum of topics capitalism, then this study focused on the key issues of private property rights, privatization and state intervention and worker-employer gap Islamic perspective . Research literature indicates that Islam is a middle way between capitalism and socialism. Capitalism recognizes private property without limit, Islam restrict individual ownership, collective ownership of resources is not guaranteed and exclusive ownership. Principle of capitalism are competition, free markets and individual competition without limits, Islam allows the state to intervene economic, market and business, in order to keep harmony, continuity and shared prosperity. Therefore, Islam recognizes the principle of property rights of rich people on poor people. There is the social responsibility of the state, rich people, and the employer, capitalism does not require otherwise.


Author(s):  
E.I. Titova

The article deals with the interpretation of labor and the relations of property rights used in different socio-economic ideologies of management. In all existing ideologies of economic management under capitalism people are free in their economic choices and only under socialism, under public ownership, the manufacturer can not freely dispose of either any property or manufactured product, so his work motivation is weakening, there is no sense of ownership and caring attitude to property and means of production. Only private property protected by the laws of the State provides its owner with the right to dispose of it and the produced product at his own discretion on a legal basis. At the same time, private property creates a personal interest in the owner in improving the quality, range, productivity, as well as reducing the cost of production of manufactured products. Since the basis of private property is labor, and it is connected with human nature, so the private property obtained by labor and personal skill is always protected by each person and is dear to him. Therefore, owners are always interested in the implementation of state laws that protect property rights. Only when a person has private property, in the form of a small plot of land, a house built on it and his own business, only then he feels like an independent owner and he has the desire to work hard and the desire to master new things. For the owner, property is his possession, his pride and he puts his strength, will, knowledge and soul into it. The Russian man did not own private property for a long period, so he lost interest in it. Only the acquisition of private property rights can restore his economic initiative and diligence, ingenuity and inventiveness, deftness and assiduity. The role of the State should be limited to the framework of the law and the creation of conditions in which market interaction between people will have economic freedom of choice and positive development.


2011 ◽  
Vol 7 (4) ◽  
pp. 499-504 ◽  
Author(s):  
PETER BOETTKE ◽  
ALEXANDER FINK

Abstract:Ha-Joon Chang, in his article ‘Institutions and Economic Development: Theory, Policy and History’, raises doubts about the effects of institutions on economic development and questions the positive effects of entirely free markets based on secure private property rights. We respond by stressing that institutions structure the incentives underlying individual action, secure private property rights are indispensable for prosperity, institutions have a first-order effect whereas policies only have a second-order effect, successful institutional change comes from within a society, and, given the status quo of developing countries, first-world institutions are likely not to be available to them.


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