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Neoliberal theory has become very influential today. Several factors have contributed to its wide spread, among them the persistent decline in economic development since the mid-1970s and the rising dissatisfaction with Keynesian explanations and prescriptions. The analytical tensions and inadequacies of Keynesianism became particularly apparent in dealing with the concurrent problems of unemployment and inflation. Moreover, the continuing internationalization of economic relations in terms of trade, investment and finance gave rise to the concept of'globalization'-that is, to the idea that national economies and cultures are dissolving into global processes. Global economic activity appears to be dominated by market forces; multinational companies can render national fiscal and monetary policies ineffective. Neoliberalism, with its strong support for market forces, is thus well suited to this international …