MENDOZA_PRELIMS_Q1 (1)
MENDOZA_PRELIMS_Q1 (1)
MENDOZA_PRELIMS_Q1 (1)
explains International Political Systems Today? Discuss and explain your answer/s by
giving example/s and or cases.
Evident in the 21st century, the school of thought that best explains the functioning of today’s
modern social and political atmospheres is the theory of Neoliberalism. Actors from the
international arena all adopt some or the majority of principles stemming from Neoliberalism, as
made apparent by the dominant economic interventions rooted in national and international
perspectives. These interventions include trade liberalization, free market capitalism, employee
deregulation, and limitation of government power, all fundamental ideas in actualizing the ideal
model of progress proposed by the theory. In essence, Neoliberalism puts forth economy-driven
interventions and private enterprise to shape and will international political systems.
Although aiming for collective progression through economic means, the practice of neoliberal
principles develops detrimental effects on less powerful members of society. This creates a
chasm in the primary purpose of international political systems to uphold and protect the welfare
of all their stakeholders, all the while their principles operate at the expense of society’s lowest
or marginalized sectors. From this, it can be said the practice of Neoliberalism results in the
positive development of the majority and further marginalization of the minority. The widening
gap between the rich and the poor is the perfect example of the running trend caused by
neoliberal policies and systems observed on a global scale. Neoliberalism drives inequality
since most economy-driven interventions and free market deregulations emphasize increasing
capital funds without consideration of human and social capital. Disregard of the latter in the
pursuit of the former perpetuates the concepts of low or unequal wages, environmental
degradation, eradication of local and small enterprises, elite capture, and weak governments.
Now, inequality is ingrained in today’s society as even with the presence and continual
emergence of these negative after-effects, the attainment of capital funds continues and still
weighs more than its adversaries.
The North-American Free Trade Agreement (NAFTA) is one of the biggest hallmarks in the
practice of Neoliberalism. Establishment of this free-trade agreement ultimately increased
economic output, employment, government funding, and foreign direct investments for all
parties, the United States, Canada, and Mexico. However, in light of these progressions, the
repercussions faced by each country manifested in long-term effects. Specifically, USA and
Canada suffered massive unemployment further in the establishment of the agreement due to
job migration and factory outsourcing in Mexico. In relation to this, Mexico became the epicenter
of low wages, poor working conditions, and rampant worker exploitations. Additionally, from all
countries capital-owners or companies threatened their workers not to form unions as their
alternatives whether it be manpower or sites of production can be sourced from either states
involved. This led to the lack of strong labor or worker unions to lobby or push for better working
environments, employee benefits, and increase of wages. Moreover, industries such as
agriculture and transport industries had also suffered. Agriculture, since local farmers from
Mexico now had to compete with government-subsidized firms and productions which resulted
to local produce being sold higher than imported goods in America. In relation to this, American
Farms in Mexico and Canada also contributed to environmental degradation as they used
cheaper but highly concentrated chemical fertilizers that increased pollution levels and lessened
soil quality. The transport industry was also gravely affected as deregulation measures enabled
trucks not to observe or be latent in following country-specific safety measures when it came to
trade. This led to illegal trade of goods, violations in health codes, and lower quality of exports
and imports. Over 4 million jobs were affected by the free-trade agreement, and 1.3 million
farmers and blue-collar jobs were put out of business. As for government-related interventions,
dissolution of specific product-tariffs such as the sugar tariffs between U.S and Mexico, corn
tariffs in all countries, and other goods such as pork, rice, cars, and auto parts, similarly all led to
increased trade but standardized lowered wages, poor working conditions, and vast job
migrations in all countries.
NAFTA and other free-trade agreements are just some of the systematized practices of
Neoliberalism. Another notable example of these practices would be the existence and continual
dominance of Multinational Corporations. MNCs and TNCs, all operate under the principles of
neoliberalism. These multi-million or billion companies are able to expand their production and
market their products through the free-market system established worldwide. Products’ place of
origins in developed countries and cheap labor and production in developing countries is the
formula for all internationally recognized MNCs. Besides these companies boosting economies
and providing jobs, MNCs are also gateways to foreign direct investments which most countries
welcome and heavily rely upon. Dependence on FDIs make governments permissive and
non-restrictive to trade arrangements, production site establishments, and even wage
settlements as long as these said companies provide government funds or FDI beneficial to the
state. FDI-hungry countries often leave their stakeholders at the threat of worker exploitation,
the use of ethnic or government-protected areas, increase of pollution, and elite foreign capture.
With all of this being said, the pro-capitalist framework introduced by neoliberal ideology
subordinates or blatantly disregards other pillars of society, such as universal human rights,
democracy, environmental conservation, tradition and culture, and equality. Neoliberalism
created a framework where other important factors in society, as mentioned above, are
surpassed and sacrificed for money or capital. Even if we live in a capitalist society,
neoliberalism’s claims of progression through economic means should not overlook the other
components that make society develop or progress. Moreover, it should operate under the
prioritization of the marginalized, not at their expense. Economic gain masked under the
detriment of the lowest sectors of society is not a step toward progress but a drawback against
it.