Muslim World Report

Neoliberalism's Role in the Rise of Fascism and Authoritarianism

Dr. Anthony Lindsay | Apr 22, 2025 1:48 PM | 9 min read | 1796 words

TL;DR: Neoliberal policies, characterized by deregulation and reduced social spending, have deepened inequalities and led to widespread discontent. This atmosphere has provided fertile ground for the resurgence of fascism and authoritarianism, as evidenced by recent political trends in countries like Brazil and Hungary. To counteract this trend, there is an urgent need for comprehensive reforms prioritizing social welfare and fostering global solidarity.

Neoliberalism and the Rise of Fascism: A Global Crisis in the Making

The Situation

In recent years, the world has witnessed a troubling resurgence of far-right movements and ideologies, a phenomenon that cannot be understated given its global implications. This rise has often been attributed to multiple factors, with neoliberalism at the forefront of the debate.

Neoliberal policies, characterized by:

  • Deregulation
  • Privatization
  • Reduction in government spending on social services

have been marketed as pathways to economic efficiency and growth. However, these same policies have produced deep-seated inequalities, social fragmentation, and a perception of disenfranchisement among large segments of the population.

The economic turmoil precipitated by the 2008 financial crisis and subsequent austerity measures has exacerbated these inequalities, creating a societal landscape where discontent festers. As impoverished populations increasingly find themselves alienated from the political process, they become more susceptible to radical ideologies that promise quick solutions to their grievances.

David Harvey (2007) asserts that neoliberalism is not merely an economic paradigm but a systematic effort to restore class dominance among elites who felt threatened by social democratic initiatives following the Second World War. The implications of this economic framework extend far beyond its immediate policies; they touch the very fabric of social cohesion and democratic governance.

Fascism emerges not merely as a byproduct of economic hardship, but as a profound critique of liberal democracy itself. Historically, it capitalizes on periods characterized by instability and collective discontent, leveraging:

  • Anticommunist sentiment
  • Narratives of ethnic or racial superiority
  • Revanchist nationalism

to consolidate power (Imogen Tyler, 2013). This multifaceted nature complicates the simplistic narrative that neoliberalism alone is responsible for fascism’s rise. Instead, we must recognize that many of the conditions that foster fascism—discontent, alienation, and societal fragmentation—would likely persist even under alternative political frameworks.

Recent case studies from Brazil and Hungary illustrate how authoritarian leaders utilize economic strife and societal fears to consolidate their power. In these instances, nationalist rhetoric serves as a rallying point, scapegoating marginalized communities and invoking a narrative of lost national pride to gain support (Martha C. Nussbaum, 2002). As Western democracies grapple with their internal divisions, the rise of these movements raises critical questions about the sustainability of neoliberalism and its unintended consequences. This trend poses a systemic challenge, not only to individual nations but also to global stability and democratic governance, thus necessitating a reevaluation of neoliberal policies alongside strategies to combat the resurgent far-right.

What If Neoliberalism Continues Unchecked?

If neoliberal policies continue to dominate the political landscape without substantial reform, the consequences could be dire:

  • Economic inequalities would likely deepen, leading to significant social unrest and radicalization (Stephen McBride & Jessica Merolli, 2013).
  • We could witness a proliferation of right-wing populist movements that exploit these grievances to gain political traction.
  • With the further erosion of social safety nets, disenfranchised citizens may increasingly turn to extremist ideologies that offer authoritarian solutions to their suffering.

This trajectory could culminate in:

  • The dismantling of democratic institutions
  • The curtailment of civil liberties, all justified under the guise of national security and social stability.

The normalization of authoritarian practices could extend beyond national borders, contributing to geopolitical tensions and undermining global cooperation. This scenario raises critical questions about the resilience of democratic institutions and the power dynamics within societies grappling with inequality and discontent. As governments prioritize market efficiency over social welfare, the underlying economic conditions that breed discontent would persist, setting the stage for increased polarization and societal disintegration.

What If Political Institutions Fail to Adapt?

Should existing political institutions fail to address the critical challenges posed by neoliberalism and the rise of fascist ideologies, we risk an erosion of democratic norms. Here are some potential outcomes:

  • Polarization within political parties could lead to legislative gridlock, diminishing effective governance (Ulrich Beck, 2002).
  • In such a polarized environment, citizen disengagement could rise, with apathy and disillusionment becoming pervasive.

This disengagement would create a vacuum that far-right parties are poised to exploit, utilizing populist rhetoric to appeal to a disenchanted electorate. The implications for social cohesion could be devastating—divided societies may become breeding grounds for violence and civil strife, threatening peaceful coexistence. As the radical rhetoric of extremist groups gains traction, the potential for violent clashes increases, further destabilizing societal fabrics already fraying under the pressures of inequality. The prospect of democratic backsliding becomes more pronounced, as governments may resort to increasingly authoritarian measures to maintain order in the face of unrest.

What If Global Solidarity Emerges?

Conversely, there exists a scenario wherein global solidarity emerges as a powerful counterforce to neoliberal excess and the rise of authoritarianism. In a world increasingly interconnected through technology and communication, grassroots movements might leverage digital platforms to cultivate unity and collective action across borders.

Such solidarity may manifest through:

  • Transnational coalitions advocating for social justice
  • Economic equity
  • Human rights

Ultimately leading to significant policy shifts at both national and international levels (Ronald Inglehart & Pippa Norris, 2016).

The emergence of a new, just economic framework could diminish the allure of fascism by emphasizing inclusivity over division. In this optimistic scenario, collective action would challenge the narratives that divide populations along ethnic, racial, or national lines, fostering a culture of cooperation and mutual support. This global solidarity would not only address the immediate economic grievances but also re-establish a sense of belonging and community among individuals who have felt marginalized by neoliberal policies.

Strategic Maneuvers

In light of current trajectories, it is imperative for all stakeholders to engage in strategic maneuvers aimed at reestablishing democratic norms and addressing the crisis of neoliberalism. Governments must undertake a fundamental reassessment of policies that prioritize market efficiency over social welfare. This reassessment could involve:

  • Implementing robust social safety nets
  • Investing in public services that mitigate economic disparities

By addressing the economic disparities that underlie social unrest (David Harvey, 2006), effective reforms can be initiated.

Reimagining Economic Policies

One crucial area of focus should be economic policy reform that centers on equity and inclusivity. Policymakers must prioritize the development of economic frameworks that address the root causes of inequality rather than merely reacting to its symptoms. Possible approaches include:

  • Income redistribution mechanisms, such as progressive taxation, to ensure wealth is shared more evenly.
  • Investments in education and healthcare, particularly in underprivileged communities, to empower marginalized populations and foster a sense of agency within larger communities.

Moreover, expanding access to quality education not only equips individuals with the skills necessary for the modern workforce but also fosters critical thinking and informed citizenship. By creating educational opportunities that are accessible to all, societies can reduce inequality and combat narratives that fuel extremist ideologies. Additionally, reforming labor laws to protect workers’ rights and promote fair wages would serve to restore dignity to the workforce, thereby undermining the appeal of authoritarian populists who promise change through divisive rhetoric.

Building Coalitions Across Movements

Activists and community organizations should prioritize building coalitions across various movements to forge a unified front against authoritarianism. Collaborating with:

  • Labor unions
  • Environmental groups
  • Anti-fascist organizations

can amplify collective voices and foster resilience against neoliberal policies that perpetuate inequalities. These coalitions could draw on the strengths of diverse movements to advocate for comprehensive reforms that address the intersecting crises of economic inequality, environmental degradation, and social injustice.

Such alliances would enable the pooling of resources and expertise, allowing movements to develop multifaceted strategies that address the complexity of the challenges they face. Additionally, these coalitions can leverage their collective power to influence policy decisions at local, national, and international levels, ensuring that the needs of marginalized communities are prioritized in decision-making processes.

The Role of Global Institutions

Global institutions have a crucial role in mediating tensions arising from economic disparities. They should champion the establishment of regulatory frameworks that address the excesses of neoliberalism while promoting models of development prioritizing sustainability and equity. By facilitating international cooperation focused on shared goals of social justice and economic stability, these institutions can help counteract the forces of division and extremism.

International bodies can also serve as platforms for dialogue and collaboration among nations facing similar challenges. They should encourage the exchange of best practices and facilitate collaborative efforts in areas such as:

  • Climate action
  • Poverty alleviation
  • Human rights advocacy

By fostering a culture of global solidarity, these institutions can contribute to the creation of a more just world, where the ideals of democracy and human rights are upheld.

The Complex Relationship Between Neoliberalism and Fascism

The intricate relationship between neoliberalism and the resurgence of fascism demands immediate and concerted efforts from all sectors to reshape discourse and advocate for policies that prioritize individual and community well-being. Absent such interventions, the specter of authoritarianism will continue to loom large over the global landscape.

Recognizing that the failings of neoliberalism, if left unchecked, can lay the groundwork for authoritarianism is crucial. This is not solely a matter of market dynamics, but also an issue of fostering trust and opportunity that fuels societal cohesion.

As we consider the future, it is imperative to reflect on the potential trajectories our societies may take. The choices made in the coming years will significantly impact the shaping of political landscapes and the preservation of democratic ideals. Engaging in proactive measures that prioritize equity, inclusivity, and effective governance is essential in combating the tide of authoritarianism and fostering resilient democracies.

The challenge ahead is not merely to resist the forces of authoritarianism but to create a compelling vision for the future that stands in stark contrast to the divisive narratives perpetuated by far-right movements. Building a society that values inclusivity and justice requires:

  • A comprehensive reassessment of current paradigms
  • Collaboration across movements
  • A commitment to fostering international solidarity

By focusing on shared goals and collective action, we may very well chart a new path, one that leads not towards authoritarianism, but towards a more equitable and just global society, anchored in the principles of democracy and human rights.

References

  • Beck, U. (2002). The Terror of Globalization. London: Polity Press.
  • Harvey, D. (2006). A Brief History of Neoliberalism. Oxford University Press.
  • Harvey, D. (2007). A Companion to Marx’s Capital. Verso.
  • Inglehart, R., & Norris, P. (2016). Trump, Brexit, and the Rise of Populism: Economic Have-Nots and Cultural Backlash. Harvard Kennedy School.
  • McBride, S., & Merolli, J. (2013). “Neoliberalism and its Discontents.” Journal of Social Policy, 42(1), 1-15.
  • Nussbaum, M. C. (2002). Citizen-Citzens: Political Liberalism in the Twenty-First Century. Princeton University Press.
  • Tyler, I. (2013). Revolting Subjects: Social Abjection and Resistance in Neoliberal Britain. Zed Books.
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