How does neoliberalism influence economic policies in developing countries?

Neoliberalism Questions



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How does neoliberalism influence economic policies in developing countries?

Neoliberalism influences economic policies in developing countries by advocating for free market principles, limited government intervention, and deregulation. It promotes privatization of state-owned enterprises, trade liberalization, and reduction of barriers to foreign investment. Neoliberal policies emphasize fiscal discipline, monetary stability, and the removal of subsidies and price controls. This approach aims to attract foreign capital, stimulate economic growth, and increase efficiency through market competition. However, critics argue that neoliberalism can exacerbate inequality, weaken social safety nets, and prioritize profit over social welfare in developing countries.