Neoliberalism is, in a sense, an attempt to confuse the world into believing that mercantilism infused with Leninist communism is the same thing as free-market capitalism. Neoliberalism is a world system and as a state apparatus it serves as a catalyst for conquest and imperialism. Neoliberal social organization is the next stage in authoritarianism and human oppression.
Some refer to this as the New World Order. However, there isn't anything particularly new about the world order, it is essentially at least several centuries old. The difference is that the center of power has moved across the Atlantic and the methods and instruments of human oppression have become more sophisticated and deadly.
The following diary is a very brief examination of what this has meant for the people of Iraq.
The geopolitical interests of the US in Iraq are a precedent that many consider when analyzing the US involvement in the country; specifically whether or not the US invaded Iraq for the stated goals—weapons of mass destruction and democracy promotion (which seemed somewhat of an ad hoc justification). It is basically common knowledge that the US involves itself in the Middle East region in order to control oil prices in a way that is best for the economic interests of certain parties in the US.
But, what isn’t stated as much, though it is perhaps more important, are the other economic interests of the US in Iraq. After merely a cursory analysis, it becomes obvious that the goal was to introduce neoliberalism into Iraq and basically force it upon the Iraqi people. Neoliberalism as a state economic arrangement essentially means that there will be market-oriented, profit-driven economic structures with unrestricted entrepreneurial initiative and so forth. Of course what is meant by free market-oriented economy is "character-building" market discipline for the poor and middle class, social welfare for the rich. This is a method for securing private profits through the public giving unrequited subsidies to corporations.
The movement from the Coalition Provisional Authority to the transitional government in Iraq was a strange one if the goal was the promotion of healthy democracy. This is because Paul Bremer reconstructed the constitutional framework of the emerging Iraqi government through a set of policies called Order 39, which imposed upon the Iraqi government (in a way that is possibly illegal in terms of the Geneva Conventions) an economic policy collective that was contrary to the desires of the budding Iraqi government and frankly the best interests of the Iraqi people.
In Stephen Marshall’s book, Wolves in Sheep’s Clothing, Naomi Klein explains quite clearly how Paul Bremer superseded Iraqi law, and thereby US commercial interests superseded Iraqi sovereignty. Democracy promotion was clearly not on the agenda.
"’In a single day,’ Klein explains, ‘[Director of Reconstruction] Paul Bremer passed a set of policies that literally usually take three decades to get passed. Iraq’s economy was protected, somewhat. In Iraq’s constitution it very clearly says that there are sectors of the economy which are considered essential services and not open to privatization. Not just oil, but water and so on. And it also says that Iraqi businesses cannot be foreign-owned—very clear rules embedded in Iraq’s constitution.’"
"’On September 19, 2003 Bremer introduced Order 39, which overturned Iraq’s constitution. It allowed 100 percent foreign ownership of Iraqi businesses and it put 200 Iraqi state companies up for privatization, up for sale. And it also said that companies coming into Iraq can take 100 percent of their profits out of the country. It also gave them a massive tax break. Bigger than anything Bush has been able to achieve. The top tax bracket in Iraq before Order 39 was 45 percent, which is what it is in Canada. It’s now a 15 percent flat tax. So this is an economic overhaul. It is shock therapy. It has already led to 70 percent unemployment. And we’re not hearing about it.’" (Marshall, Stephen. 2007; Wolves in Sheep’s Clothing; 104-05)
This is all the imposition of neoliberalism upon Iraq. In summary, what forced neoliberalism entails is a privatization of everything in the economy but a single critical resource, oil. Further, that there should be no trade barriers or barriers to foreign direct investment (FDI) which should translate to mean that the Iraqis would have to deal with foreign ownership of their economy. Also, there were to be no convertibility restrictions for currency exchange, or any other kind of restrictions which would limit the ability of foreign enterprises operating in Iraq to repatriate their profits. The US also forced on the Iraqis a flat tax which conservatives in the US have been trying to accomplish for years, quite unsuccessfully.
So for anyone who states that the illegal invasion of Iraq by the Bush administration was all about oil, they should take a closer look at how the occupying US planners have operated. A more nuanced examination of this scenario serves to demonstrate that the Washington Consensus about neoliberal free trade is at the heart of the US invasion of Iraq.