Profit Over People

“How can policies promoting free markets exacerbate inequality and serve the interests of the few at the expense of the many?”

1. Understanding Neoliberalism Beyond Free Markets

Neoliberalism often positions itself as the champion of individual freedom, rooted in the belief that markets, if left unhindered, will flourish and benefit everyone. But this economic philosophy extends far beyond simple free-market advocacy. It transforms into a worldview, shaping how countries manage their economies and how societies prioritize profit over people's well-being. Governments are pushed to reduce intervention, claiming this approach fosters innovation and economic growth.

The term “Washington consensus” embodies this philosophy. Created by US policymakers and international institutions, it became a tool to impose market-oriented principles on developing nations. These included trade openness, inflation control, and privatization, reframing governments as bystanders in their own economies. Yet, these policies often mistook the economic complexities of vulnerable economies, leading to significant repercussions.

As examples of real-world results demonstrate, neoliberalism prioritized economic systems supporting power and profit over common good. In many cases, it has served to deepen global inequality. The narrative of efficiency through reduced government roles became a framework not for development but for maintaining control by powerful nations over weaker ones.

Examples

• The Washington consensus advocated privatization in Latin America, disregarding the risks of monopolization in local markets.
• Neoliberal policies in Eastern Europe pushed rapid privatization in the 1990s, leading to wealth concentration in the hands of a few oligarchs.
• Dismantling trade barriers harmed local industries in developing countries, such as agriculture in Mexico under NAFTA.

2. Power Dynamics Drive Neoliberal Policy

Countries adopting neoliberal policies frequently act to protect their own power while disadvantaging others. The 20th-century interventions by the US in Latin America show a clear pattern of fostering economic climates conducive to private investment and resource extraction, even at the expense of local democracies or public welfare.

For example, Chile in 1973 experienced a dramatic coup supported by the US to remove Salvador Allende, a socialist-oriented leader. Similarly, Guatemala witnessed a coup in 1954 when its government promoted land reforms that clashed with US corporate interests. These events were rationalized as necessary for preserving free-market ideals but often destabilized nations instead.

Even imperial histories reinforce these dynamics. Britain, during its imperial zenith, openly opposed industrialization in India while promoting its own industries. When neoliberalism is analyzed through this lens, it is evident that it has far more to do with consolidating global power than creating fair economic opportunities.

Examples

• In Nicaragua, interventions aimed to curb socialist movements despite widespread democratic support for such policies.
• Latin American countries were reshaped by US preferences, including privatization and suppression of nationalist policies.
• India’s iron industry crumbled as British policies flooded markets with cheap imports while stifling Indian industrial capabilities.

3. The WTO and Global Economic Control

The World Trade Organization (WTO) claims to promote trade fairness globally, but it benefits stronger economies significantly more than weaker ones. Its structure often forces countries to liberalize their economies, opening them up for exploitation by multinational corporates, most often from wealthier nations.

Take telecommunications as an example. WTO agreements have allowed powerful nations like the US to demand deregulation in other countries, forcing them to let foreign corporations dominate their telecom industries. While presented as fostering competition, such liberalization often uproots local industries and hands control to foreign entities, destabilizing domestic economic systems.

Countries targeted by WTO rules frequently lose autonomy over their industries. While short-term gains might arise from cooperation, long-term dependence on foreign investors or corporations can weaken their internal structures and maintain global disparities.

Examples

• The WTO mandated liberalization of Mexico's telecom sector, which benefited US companies disproportionately.
• Developing nations often face penalties for protective tariffs, while developed nations retain hidden supports like subsidies.
• India has opposed certain WTO rulings that threaten its unique agriculture sector but faces constant pressure to conform.

4. One Rulebook for America, Another for All

The US often presents itself as a champion for international law, but history reveals a selective commitment. It promotes rules beneficial to its interests while avoiding accountability when those same rules challenge its actions. This behavior undermines international trust in justice systems like the International Court of Justice (ICJ).

Consider Nicaragua in the 1980s. The socialist-leaning Sandinista government faced Contras with direct US funding and support. The ICJ later ruled this intervention illegal, but the US ignored that verdict. Similarly, Cuba’s long-standing US embargo reflects defiance of international consensus, showcasing the US’s disregard for rules when they don’t align with its goals.

America’s selective engagement with global norms often leaves smaller nations disillusioned. Though they are pushed to comply with international rules, influential nations escape consequences for breaches of the same.

Examples

• The ICJ ruling against the US for Nicaragua marked a historical yet unheeded call for accountability.
• The Cuban embargo continues despite international votes condemning its legality.
• US withdrawal from agreements like the Paris Accord signals minimal accountability on issues like climate.

5. Economic Agreements and Broken Promises

Free trade agreements such as NAFTA are frequently championed for their supposed economic mutual benefits but fail to address how these agreements deepen inequality between countries. NAFTA, which launched in 1994, illustrates this effectively.

For Mexico, promises of economic boosts were short-lived. US government-subsidized crops like corn flooded the Mexican markets, crippling local agriculture. Small farms disappeared, dependency on imports rose, and poverty levels worsened even as trade grew. Thus, NAFTA expedited globalization’s often-forgotten downsides: shifting poverty and dependency instead of alleviating them.

Rather than fostering equality, trade agreements illustrate how concentrated power can redefine economies—often stripping communities of sovereignty over food or resources.

Examples

• The collapse of Mexico’s corn farming industry undercut livelihoods due to subsidies supporting US imports.
• Agribusiness benefited from NAFTA’s focus on exports while rural food security in Mexico declined.
• The Zapatista uprising opposed such economic colonization, fighting to reclaim rights for indigenous communities.

6. The Role of Resistance Movements

When neoliberal policies displace vulnerable communities, people push back. The Zapatista uprising in 1994 stood against globalization’s unfair structures. It wasn’t simply a rebellion but a definitive critique of NAFTA and centuries of systemic economic exclusion.

By using direct action alongside innovative online campaigns, the Zapatistas gathered global awareness about indigenous rights issues. Their movement became an example for communities worldwide resisting neoliberal exploitation.

While global capitalism remains dominant, local and international movements—grounded in justice and equality—continue fighting for better alternatives.

Examples

• The Zapatistas in Chiapas emphasized land rights and autonomy during NAFTA’s introduction.
• Movements like Occupy Wall Street echoed Zapatista critiques globally.
• Indigenous advocacy gained global attention through digital campaigns started by local uprisings.

7. Inequality is Built into the System

Neoliberalism exacerbates economic divides. Its policies focus on profit maximization, often widening the gap between wealthier and poorer nations. Such systems drive wealth into the hands of the already affluent while limiting upward mobility for marginalized groups.

From India’s forced deindustrialization to Latin America’s reliance on foreign conglomerates, the global landscape showcases inequality. While wealthier nations profit, lower-income areas often struggle without access to the resources needed to rebuild.

Examples

• India's economic independence was stifled during British colonial trade policies.
• US agribusiness relies on imported labor caused by displaced local farming systems in Mexico.
• High youth unemployment persists in nations forced into dependence on “cheap” export models.

8. The Hidden Costs of Liberalization

Economic liberalization garners praise but comes with invisible costs: loss of sovereignty, destruction of local industries, and long-term dependency. Developing nations rely on aid or external inputs instead of growing self-sustaining economies.

Essential sectors, like healthcare and farming, suffer as neoliberal priorities are misaligned with critical public welfare considerations.

Examples

• Privatization in water provision left countries like Bolivia struggling with affordability for their people.
• Healthcare privatization trends in emerging economies increase disparities.
• Agricultural tariffs removed through liberalization reduced local food security in parts of Africa.

9. Changing the Rulebook

Global systems entrenched with neoliberal ideologies aren’t unchangeable. Community movements and alternate frameworks offer hope. Whether it’s indigenous people reclaiming land, nations challenging WTO penalties, or renewed solidarity amongst the Global South, alternatives exist.

A shift from profit to people-centered policies can realign inequalities, provided global accountability and cooperation are prioritized.

Examples

• Zapatista initiatives in Chiapas introduced autonomous educational projects free from neoliberal influence.
• Developing nations’ coalitions grow stronger in institutions like UNCTAD to challenge WTO policies.
• Activists promote renewable energy solutions outside corporate-dominated global energy frameworks.

Takeaways

1. Advocate locally for policies that prioritize human well-being over profit-driven models by supporting grassroots movements.
2. Critically analyze the impacts of trade agreements and global financial institutions on vulnerable communities.
3. Hold global leaders accountable for the unequal enactment and enforcement of international laws and agreements.