This essay seeks to disprove that the ‘rise of the global South’ means that neoliberal globalization makes development possible. Although the fundamentals of the neoliberal school of thought holistically believe that governments are not suited to carry out development for nations but rather, are the problem, Icaza (2010). This essay will firstly look at some of the reasons that contributed to the rise of the South and how governments involvement shaped this rise in various countries. Secondly, this essay assesses the relationship between neoliberalism and globalization, while showing that there is a lack of sufficient evidence to suggest that there is currently a dominant neoliberal world order. The essay will then go on to discuss the Washington Consensus and its role in terms of global governance, with a particular focus on its successfulness in the global South. Lastly, the essay will provide a counter argument challenging this claim and showing instead that indeed, ‘the rise of the South’, means that neoliberal globalisation makes development possible.
To begin with, neoliberal globalization is seen as “the worldwide process of reorganizing economic activity on the principle of intensified interaction and interdependence between increasingly open and liberalised national markets…” Onis and Guven (2011). The rise of the South was described by Gray & Gills (2016) as the process of showing that development can be attained by countries which are considered poor through their help to each other and the reigning world order undergoes a transformation to show that they have mutual interests together with the countries of the global North. There are numerous factors that can contribute to the rise of the South but what stands out in regards to neoliberal globalization is the fact that governments had a big role to play in the success of the countries which emerged as developed from their status of developing. This was largely influenced by their governance style directed by their governments. Looking at countries belonging to BRICS, the reason that they were able to progress faster than their fellow countries in the global South is largely attributed to the correct governance style implemented by their leaders, unlike other countries which continued in systems of corruption and greed which therefore never saw them progress.
Taking China as an example, some would not assume that they were considered a developing nation too long ago. However, in 1990, they were the largest recipients of foreign direct investment and funds from foreign countries Cohen (2007 p.52). Around the 1990s, with the US providing funds to many countries particularly in the developing world, this was contradictory to the Reagan administration at the time as they were more drawn towards neoliberalism practices. The Chinese government however has always “maintained a strong interventionist state” (Barboza and Buckley (2013). Development in the rise of the South may be...