The neoliberal transformation of the global political-economic system since the mid-1970s has led to profound and increasing inequality and has limited state capacities to tax, regulate and carry out socially supportive public policies. Neoliberalism, or the global institutionalization of laissez-faire economics, has helped to generalize individual and community vulnerability to climate-induced changes and decrease resilience by increasing poverty and thereby limiting options; the global majority face increasingly contingent employment and downward pressure on wages while global economic competition deprives smallholders of their assets. States compete to attract mobile capital by deregulating private activity such as logging and real estate development, increasing climate-related risks to individuals and communities. At the same time, neoliberal limits on the state have inhibited states' ability to fund and coordinate a range of necessary climate adaptations. Finally, neoliberalism undermines social cohesion and thereby limits the potential of civil society to substitute for the diminished state. Reforms to the global neoliberal system are therefore necessary if climate-vulnerable populations are to be protected.
Fieldman, G
Neoliberalism, the production of vulnerability and the hobbled state: Systemic barriers to climate adaptation
Climate And Development