Economic policy, globalization and the labour movement: Changes in the global economy from the golden age to the neoliberal era

There has been a huge shift in the hegemony of macroeconomic thinking and actual macroeconomic policy between the period after World War II until the late- 1970s and the period since the late-1970s until the present. The shift has been commonly identified as a move by countries of the West from Keynesian-type economic policies to free-market economic policies. It is important to realise that this shift is ideological. The shift in ideology is fundamentally related to contending views of the role of the state and state regulation. The ideology of free market capitalism is the motive force behind the globalization that occurred since the late-1970s. This working paper provides a broad overview of key consequences of the economic changes that occurred during the period since World War II to the present. It highlights the different impacts that hegemony of neoliberal ideology and widespread adoption of neoliberal policies have had on workers and the labour movement. The first part of the paper provides a historical and institutional background to the changes in economic perspectives and policy. The second section provides a historical and institutional background to industrial development and business restructuring. The third section considers the very real problems facing developing countries in their attempts at industrial and economic development during the neoliberal era. The fourth section considers the role and benefits of foreign direct investment for developing countries. The fifth section discusses the very important issue of gender and neoliberal globalization. The final section is the conclusion.