Around the world, neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. It is raging all over Latin America. The first clear example of neo-liberalism at work came in Chile (with thanks to University of Chicago economist Milton Friedman), after the CIA-supported coup against the popularly elected Allende regime in 1973. Other countries followed, with some of the worst effects in Mexico where wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%. Over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized in Mexico. As one scholar said, "Neoliberalism means the neo-colonization of Latin America."
In the United States neo-liberalism is destroying welfare programs;
attacking the rights of labor (including all immigrant workers); and
cutbacking social programs. The Republican "Contract" on America is pure
neo-liberalism. Its supporters are working hard to deny protection to
children, youth, women, the planet itself -- and trying to trick us into
acceptance by saying this will "get government off my back." The
beneficiaries of neo-liberalism are a minority of the world's people. For
the vast majority it brings even more suffering than before: suffering
without the small, hard-won gains of the last 60 years, suffering without
end.
