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Question

10.4. Explain the key organizing principles of the global economy.
Identify the reasons opponents of neoliberal policies give for their rejection of this philosophy.
Reason Why Opponents Dislike Neoliberal Philosophy
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Neoliberalism fails to avert and alleviate economic crises.
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Neoliberalism does not have enough supporters worldwide to be effective.
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Neoliberalism does not support structural adjustment loans.
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Neoliberalism promotes uneven development.
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Not a Reason Why Opponents Dislike Neoliberal Philosophy
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Answer 1

### Key Organizing Principles of the Global Economy

1. **Market Liberalization**: This principle advocates for the reduction of state intervention in the economy, promoting free markets and open competition. It suggests that the economy functions best when left to its own mechanisms without heavy government interference.

2. **Privatization**: The shift of control over state-owned enterprises or services to private sector hands is a significant organizing principle. This pathway is believed to foster efficiency and innovation due to competitive pressures and profit incentives.

3. **Deregulation**: Reducing or eliminating government rules and regulations that are perceived as hindering economic activity is a common principle. The goal is to create an environment where businesses can operate more freely and efficiently.

4. **Global Integration**: Promoting global trade and investment through the removal of trade barriers and tariffs is crucial. Encouraging global economic interconnectedness is seen to foster economic growth and development.

### Reasons Why Opponents Dislike Neoliberal Philosophy

- **Neoliberalism fails to avert and alleviate economic crises**: Critics argue that the deregulation and liberalization favored by neoliberal policies can lead to financial instability and economic crises, as seen in the 2008 global financial crisis.

- **Neoliberalism promotes uneven development**: Opponents claim that neoliberal policies accentuate income and wealth inequalities within and between nations, leading to social and economic disparities.

### Not a Reason Why Opponents Dislike Neoliberal Philosophy

- **Neoliberalism does not have enough supporters worldwide to be effective**: The effectiveness of a philosophy or policy framework is not generally critiqued based on its popularity or the number of supporters.

- **Neoliberalism does not support structural adjustment loans**: Neoliberalism is actually closely associated with structural adjustment policies, especially those implemented by the International Monetary Fund (IMF) and World Bank, which include structural adjustment loans.

By dragging the answers to their appropriate categories, we get the following:

#### Reason Why Opponents Dislike Neoliberal Philosophy
- Neoliberalism fails to avert and alleviate economic crises.
- Neoliberalism promotes uneven development.

#### Not a Reason Why Opponents Dislike Neoliberal Philosophy
- Neoliberalism does not have enough supporters worldwide to be effective.
- Neoliberalism does not support structural adjustment loans.