Neoliberalism, the state and the Global Financial Crisis

This chapter examines the evolution of neoliberalism and its complex relationship with the state, particularly in the context of the Global Financial Crisis (GFC). It challenges narratives that portray neoliberalism as a retreat of the state, arguing instead that state intervention has been central to neoliberal restructuring. Section one analyses the evolution of the post-World War Two (WW2) international economy through the prism of the rise and fall of social democracy as a diverse tradition of political thought and practice, and the subsequent emergence of neoliberalism. Section two focuses on the role of the state in opening up and reforming national economies to facilitate the early stages of economic globalisation. Finally, it explores how the GFC exposed systemic vulnerabilities and undermined democratic institutions and social stability. Ultimately, it calls for renewed democratic engagement and critiques the technocratic responses that failed to address the root causes of economic instability and growing inequality.