125: The Devolution of Neoliberalism – UTS Finance Department Roundtable

In this special edition of the [i3] Podcast, in collaboration with the UTS Finance Department, we explore how the neoliberal model of economics, which largely ignored politics and focused on financial metrics, has eroded over time and made way for the rise of populism, which has exerted its influence on economies around the world. Why did the guardrails that neoliberalism provided slowly disappear and what are the consequences of this? Is there any model that will replace it? Political Economist Elizabeth Humphrys, Geopolitical Specialist Philipp Ivanov and UTS Industry Lecturer Rob Prugue delve deep into this fascinating topic as part of the Circle the Square roundtable series.

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Overview of Podcast

00:00 – Introduction
Wouter introduces the special i3 Podcast edition, produced with UTS Finance. He outlines the episode's theme: how the post-war neoliberal guardrails that long supported economic certainty have eroded, creating persistent uncertainty in markets. He introduces guests Elizabeth Humphrys, Philipp Ivanov and Rob Prugue.

03:04 – Origins of Neoliberal Guardrails (Rob)
Rob explains the emergence of post-WWII guardrails: Bretton Woods institutions, NATO, the World Bank, IMF and other frameworks enabling stability and collective economic growth. They created a predictable environment but gradually weakened.

06:05 – Australian Context & Rise of Neoliberalism (Elizabeth)
Elizabeth describes the long boom after WWII, its collapse in the 1970s, and neoliberalism's emergence. She explains how the Hawke Government in 1983 implemented major reforms—floating the dollar, tariff cuts, privatisation—enabled by strong political capital and union involvement.

10:09 – Global Perspective (Philipp)
Philipp explains the Cold War dynamic: US-led order versus the Soviet bloc, with non-aligned states largely weak. Post-1970s Soviet stagnation and 1990s globalisation cemented US dominance, setting the stage for the "golden age" of the neoliberal order.

14:21 – Pax Americana and the Peace Dividend
Rob discusses how guardrails encouraged discipline: countries deviating too far politically were penalised by markets. But global shifts, manufacturing loss and deindustrialisation gradually hollowed out these systems.

16:02 – Contestation of Neoliberalism & Social Impacts (Elizabeth)
Elizabeth stresses that neoliberalism was contested from the start. She highlights social movements in the Global South, rising inequality, and sharp pain in Eastern Europe during rapid liberalisation. Domestic consequences—job losses, wage stagnation—fuelled political distrust.

22:03 – Globalisation, Inequality & a Multipolar World
Wouter links globalisation to economic displacement. Philipp outlines four major geopolitical mistakes after the Cold War:

1. Assuming China would remain benign

2. Dismissing Russia

3. Taking the developing world for granted

4. Ignoring the power of nationalism and inequality

27:26 – Where Are We Now? Have the Guardrails Fully Collapsed?
Rob argues that the g