According to that article, Dubai's biggest businesses are owned or propped up by the government. That's the opposite of "neo-liberalism" by any definition. If anything, that article, and Dubai in general, should serve as a perfect example of why it's dangerous to involve government with business beyond the usual arguments of creating boom/bust cycles and inhibiting entrepreneurs from getting their small businesses off the ground because of ridiculous amounts of red tape. On a related side note, I was just reading an article in the local paper about a small business owner that cannot put a sign on his store because it has to be the same signage as on every other local store (material, lettering etc.) and it's near impossible to have that created because the business that made the signs no longer exists! So now his business is failing because no one knows it's there. Gooooo government.Pure Method wrote:I think in this case it would be more helpful to think of neo-liberalism as the opposite of protectionist policies. In that sense, Dubai, which has lured scores and scores of large, high-profile international/multinational corporations, can be said to be oriented towards the 'neo-liberal world economy'.
I have a semi-related question for you Hoka, and I am curious for your response and eager for you to drop some knowledge. I often hear the claim (actually, you yourself may have said this, but I'm not sure) that governments are not supposed to pick winners/losers in the economy. I would argue that governments are best served by catering to and preparing their populace for the country's competitive advantage. Rather than say: "all industries should be given a chance" shouldn't we say "this industry is the most profitable/sustainable for our future, and we will pursue it aggressively"?
Flame away.
Why would the government need to do that? The most profitable/sustainable industries don't need the government, they're already succeeding on their own. The problem comes in when the government begins propping up businesses that are failing or have failed, thus promoting the idea that it's not necessary to do it right, just put yourself in the position to make the government believe you're too important to go away, or make enough friends with politicians with too much power and never worry about failing.