Current Affairs · · GS2 · Social Justice

Writer links global youth unrest to the limits of market-led growth

A Hindu opinion piece argues that rising youth unrest worldwide stems partly from neoliberal policies — privatisation, deregulation and reduced welfare — which it says weakened job creation and public services. It cites ILO data on youth joblessness and stagnant wages. Defenders of market reforms credit them with lifting millions out of poverty; the debate is unresolved.

Event date:

REq1
  1. Note1 / 5

    WHY IN NEWS?

    • A Hindu opinion piece links youth protests in several countries to economic insecurity.
    • It blames neoliberalism — market-oriented reform, privatisation, deregulation and a smaller state — for weakening social protection.
    • It argues that falling wage shares hurt consumption and investment.
    • The writer accepts that youth discontent has many causes, including corruption, political exclusion and rising aspirations.
  2. Note2 / 5

    THE EVIDENCE CITED

    • Youth joblessness: The ILO reported global youth unemployment of 13% in 2023, with 20.4% of young people not in employment, education or training (NEET).
    • Wages and productivity: The ILO found productivity in high-income countries grew faster than real wages between 1999 and 2024.
    • Wealth gap: The World Inequality Report 2022 estimated the richest 10% held about three-quarters of global wealth.
    • Education costs: Rising fees and coaching costs burden poorer families without guaranteeing jobs.
    • Regional examples: Student protests in Bangladesh in 2024 and Sri Lanka's 2022 movement during its economic crisis.
  3. Note3 / 5

    KEY CONCEPTS

    1. What is neoliberalism?

    It is an approach favouring free markets, privatisation, deregulation, low taxes and limited state spending. It became dominant from the 1980s.

    1. What does NEET mean?

    Young people Not in Employment, Education or Training. A high NEET rate signals wasted potential.

    1. What is aggregate demand?

    It is total spending in an economy. If wages stagnate, households spend less, which can discourage business investment.

    1. What did Kalecki argue in 1943?

    Economist Michał Kalecki argued that business interests might resist permanent full employment because it would strengthen workers' bargaining power.

  4. Note4 / 5

    PSIR LENS

    This card applies political science frameworks to the debate.

    • Neoliberal view (Hayek, Friedman): Markets allocate resources best; state intervention distorts incentives. Growth will eventually create jobs.
    • Polanyi's "double movement": When markets spread too far into social life, society pushes back to demand protection. Youth protests can be read this way.
    • Critical political economy: Thinkers such as David Harvey see neoliberalism as shifting power and wealth towards capital.
    • Counterview: Market reforms in India after 1991 and in East Asia coincided with rapid growth and large falls in poverty.
    • Middle path: Many scholars favour markets combined with strong public investment in education, health and social security.
  5. Note5 / 5

    WAY FORWARD

    These are the writer's suggestions, not adopted policy.

    • Grow jobs: Promote labour-intensive manufacturing and services.
    • Make education affordable and link it to apprenticeships.
    • Protect informal workers through social security, such as registration on e-Shram.
    • Invest counter-cyclically while keeping public finances sound.
    • Share technology gains through reskilling and worker participation.

Sources

Syllabus

PaperSubjectSub-topic
GS2Social JusticeWelfare, effect of global policies on India
GS3EconomyEmployment, inclusive growth
PSIRPolityPolitical ideologies (liberalism, neoliberalism), political economy
PrelimsEconomyILO reports, NEET

Topics

IndustryInflationGovernance

Practice questions

  1. "NEET" in labour statistics refers to youth who are:

    1. Studying for medical entrance
    2. Not in employment, education or training
    3. In unpaid family work
    4. Self-employed
    Show answer

    Answer: B. The ILO tracks it as a key youth indicator.

    Difficulty: medium · statement

  2. Which thinker described a "double movement" in which society resists the spread of market forces?

    1. Friedrich Hayek
    2. Milton Friedman
    3. Karl Polanyi
    4. Adam Smith
    Show answer

    Answer: C. He set it out in The Great Transformation (1944).

    Difficulty: medium · statement

  3. Which of the following is most closely associated with neoliberal policy?

    1. Nationalisation of banks
    2. Deregulation and privatisation
    3. Price controls
    4. Import substitution
    Show answer

    Answer: B. It favours market-led allocation.

    Difficulty: medium · statement

Mains practice

Answer-writing practice on this article. Attempt it first, then open the hints.

  1. GS3 · 250 words

    "Youth unemployment is the most serious threat to social stability in developing countries." Discuss with reference to India.

    Show hints
    1. Demographic dividend, educated unemployment
    2. informal work
    3. skilling
    4. labour-intensive growth
    5. social protection.
  2. PSIR · 250 words

    Critically evaluate the claim that neoliberalism has produced growth without security.

    Show hints
    1. Hayek and Friedman
    2. Polanyi's double movement
    3. Kalecki
    4. critical political economy
    5. India after 1991, welfare state debates.