The Limits of Neoliberal Globalization

Rajko Tomas

Montenegrin Journal of Economics, 2020, vol. 16, issue 4, 157-170

Abstract: This paper explores the theoretical determinants of modern globalization and the limitations it poses as a natural reaction to its consequences. The author assumes that planet Earth is a natural global system, and that, owing to the contrast of interests in resource scarce conditions, humans have established a social global order with significantly different rules of functioning than the natural global order. Modern globalization is based on the ideology of neoliberalism. Globalization on this foundation has led to an increase in the World’s wealth, but also to an increase in the inequality of its distribution and to the widening of the gap between the rich and the poor. The author sees the causes of globalization’s bad consequences in the redistribution of accumulated wealth on the basis of economic power and in the unwillingness and inability of the state to limit it. A series of contradictions that globalization is burdened with, causes several forms of resistance to globalization, which set its boundaries. These resistances arise due to: non-harmonized motivations of the participants in globalization; the price convergence of factors of production, different economic powers of market participants, differences in the market size, widening inequality of wealth distribution, widening gap between the rich and the poor, negative selection, moral hazard and captured resources. Neoliberal globalization has reached a stage in which it autonomously creates the limits of its own expansion and abolishes its own principles.

Date: 2020
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