Globalization and Its Discontents has ratings and reviews. Renowned economist and Nobel Prize winner Joseph E. Stiglitz had a ringside seat for. The main message of Globalization and its Discontents was that the problem Joseph E. Stiglitz, a Nobel laureate in economics, is University. “Globalisation in is different from globalisation in ,” argues Nobel prize -winning economist Joseph E Stiglitz in Globalization and its.

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‘Globalization and its Discontents Revisited’: Joseph E Stiglitz on the state of the world

It is designed to provoke a healthy debate and… shows us in poignant terms why developing nations feel the economic deck is stacked against them. So where does this leave his critique of the IMF? He sees this as needing a rebalancing of the voting rights between the main industrial countries and the developing countries, though he expresses skepticism about achieving any major changes in the short run.

Behind the free market ideology there is a model, often attributed to Adam Smithwhich argues that market forces—the profit motive —drive the economy to efficient outcomes as if by an invisible hand. He is known for his critical view of the management of globalization, free-market economists whom he calls “free market fundamentalists” and some international institutions like the International Monetary Fund and the World Bank.

While the critique of the IMF is the most persistent and coherent theme running through the book, the attack on globalization “done the wrong way” is broader. Perhaps, a World Bank bureaucrat can only be so acerbic towards his colleagues!

This means that the IMF has objectives that are often in conflict with each other [].

The result was a IMF-facilitated crisis that was longer and worse than necessary. I hope he gets to publish a revised edition. Stiglitz believes the IMF and World Bank should be reformed, not dismantled—with a growing population, malaria and AIDS discontenta, and global environmental challenges, Keynes’ mandate for equitable growth is more urgent now than ever. Also strong regulation basically doesn’t exist.

Instead it largely focused on the IMF’s one-size-fits-all economic policies and the harm that inevitably results. It is very dull.

The IMF strongly advocated “shock therapy” in a rush to market economies, without first establishing institutions to protect the public and local commerce. However, I’ve felt the author has been unduly kind towards IMF.

The wrong way is to follow the dictates of the Washington Consensus, which is also variously referred to as market fundamentalism or neoliberalism. Regrettably, the opposite happens too often, when academics involved in making policy recommendations become politicized and start to bend the evidence to fit the ideas of those in charge.


Globalization and Its Discontents

Large segments of the population in advanced countries have not been doing well: However, globalization is not a new phenomenon, as it has been around since ancient times. Trade Conflict and Systemic Competition. Published by Norton first published While this isn’t a bad thing necessarily, which is why I still give it 3 stars, I felt like it left much of the devastation of globalization untouched.

Specific policies criticised by Stiglitz include fiscal austerity, high interest ratestrade liberalizationand the liberalization of capital markets and insistence on the privatization of state assets. Please wait, fetching the form. You can’t build Rome in a day, but the Washington Consensus ideologues would have it that you can. Stiglitz stresses the point: Lists with This Book.

Review of Globalization and its Discontents | PIIE

He starts out explaining it he believes globalization is a very powerful tool to improve our lives, that privatization, and market liberalization are very powerful tools.

The book draws on Stiglitz’s personal experience as chairman of the Council of Economic Advisers under Bill Clinton from and chief economist at the World Bank from This book actually addresses the reality that hundreds of millions of people sttiglitz in today’s economy especially when it comes to the developing countries Low wages, less rights, and less spending power create a world that is hostile to globalization. Things are a little better in Europe — but only a little better.

Goodreads helps you keep track of books you want to read. Undemocratic paternalism is inflicted through ideology, assuming the model IMF presents is universally applicable. Perhaps Stiglitz globaliisation that the empathy he expresses for their position will win the anti-globalists to his side, so that they will endorse the sensible positions he espouses in favor of gradual trade liberalization, careful privatization, some version of the market economy, and so on.

A New Approach for the Age of Globalization provides some vital insights, looking at the big winners and losers in terms of income over the two decades from to globalisatlon He notes that this prescription for economic growth, dubbed the ‘Washington Consensus’, is far from the consensus position among economists. What caused the shift?

Stiglitz acknowledges that the goals of the IMF, the goals of Globalization, are not inherently bad, and need not lead to the problems that we have seen. He criticizes its imperialistic ambitions, as displayed most recently in its insistence that it run the Poverty Reduction and Growth Facility a lending facility for poor countries, whose management requires expertise on development that has not traditionally been the IMF’s comparative advantage.


The title and the cover and the rhetoric and the repeated attacks on the IMF and the author’s avowed sympathy for the anti-globalization protesters may give the impression that this book is just a polemic intended to capitalize on the author’s Nobel Prize.

The procedures and rhetoric of financial institutions widen the gap between developed and developing, which resulted from undemocratic paternalism and lack of accountability, transparency. Stiglitz notes that the original mission of the IMF was that of ensuring global economic stability. More generally, neoliberals, apparently worried about adverse incentive effects, have opposed welfare measures that would have protected the losers.

While it may have been necessary to close some banks, one should have recognized that good banks are institutions that have built up knowledge of their borrowers that could not easily be replicated, so that closing them was going to impose a long-term cost on the economy.

Then one might want the Fund to lend so as to finance some modest budget deficit, and one might accept some moderate monetary expansion, but that may still leave a need for cutting public expenditure or raising taxes. Basically, he thinks steps towards market economy were taken too fast.

During this period Stiglitz became disillusioned with the IMF and other international institutions, which he came to believe acted against the interests of impoverished developing countries.

And, well, fuck the IMF. Financialization continued apace and corporate governance worsened. All said and done, I must however also add that, Stiglitz’s personal biasness against IMF also shows through very clearly here, so I am inclined to take a lot of his arguments and anecdotes with a pinch of salt. These restrictions on the conditions under which markets result in efficiency are important—many of the key activities of government can be understood as responses to the resulting market failures.

Much of the substance is in fact rather reassuring to those of us who have regarded ourselves as mainstream and basically pro-globalization, but his critique of the IMF demands serious consideration.

The other big issue with this book is that Stiglitz doth protest too much, as the poet once said.