AN EXERCISE IN WORLDMAKING 2009 - ISS

86 MEKALIA PAULOS AKLILU
the restructuring that took effect and its consequences. Ultimately, I will
put forth my own personal reflections by way of concluding the debate.
Whilst acknowledging that indeed neo-liberalism is in essence conceptualized
as a dialectical interaction between ideology and underlying material
interests, an unresolved contention remains amid various authors
and academia as to which of these two elements transcends the other:
ideational or material? This paper constraints itself by analyzing issues
through the prism of a more critical materialist perspective; the alternative
view will also be presented so as to achieve a more nuanced understanding.
This scope may appear limited given the complex nature of the
issue at hand. However, exhaustively presenting an analysis of both perspectives
would, I believe, be neither possible nor prudent, and moreover,
would not be in the interest of clarity given known constraints.
Furthermore, notwithstanding the role of homegrown neo-liberalism, I
feel it important to accentuate the ramifications of the IMF-imposed
course of action during the time in question.
NEO-LIBERALISM DEFINED: A MATERIALIST PERSPECTIVE
Anchored in the ideals of eighteenth and nineteenth century liberalism,
neo-liberalism came to govern the international sphere in the 1980s and
beyond. Its ascent was instigated by a crisis in capitalism, as the “embedded
liberalism” that reigned during the post-World War 2 period appeared
untenable and stagflation became a striking characteristic of much
of the 1970s as oil prices reached astronomical heights. It therefore became
evident that the Keynesian economic thought and policies marked
by state-interventionism, which had dexterously constructed an agreeable
compromise between capital and labor, had to be revamped (Gamble
2006, Harvey 2005, Robison 2006). The monetarist critique of Keynesianism
that had been stealthily amplifying began to take hold as intense
debates followed in the corridors of political power as well as academic
circles.
In the event that a particular notion seeks preeminence, it requires a
conceptual apparatus that embodies ideals held in high esteem by those it
desires to sway. Hence, neo-liberalism opted for human dignity and individual
freedom, both potently magnetic in their allure (Harvey 2005: 5).
The concept of freedom was denigrated to a sheer promotion of free
enterprise and as Karl Polanyi astutely observed, “planning and control
[were] being attacked as a denial of freedom. Free enterprise and private