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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I could not agree more with Stiglitz that the replacement of Keynesian economics by new classical models in many university curricula is a sad example of scientific retrogression: We have created an ersatz capitalism, socializing losses as we privatize gains, a system with unclear rules, but with a predictable outcome: If you are looking for a popular introduction to macroeconomics, look elsewhere.

To find out more, read our updated cookie policy and privacy policy. In Latin America, many countries had governments that excelled in prolific spending, resulting in massive debts and budget deficits and horrific inflation. However, I’ve felt the author has been unduly kind towards IMF. Such an objective function would be consistent with sundry actions of the IMF of which he disapproves, from its enthusiastic support of capital account convertibility to its efforts to restructure the financial sector in East Asia to its penchant for increasing interest rates to its willingness to furnish big loans that are to be used for bank bailouts while pressing countries to cyclically-destabilizing cuts in public spending on food subsidies to its aversion to inflation.

Well, as unresponsive as he portrays it most of the time, though there are the odd places where he acknowledges that Fund economists are also capable of intelligent professional debate.

Globalization and its New Discontents

An International Bestseller “Accessible, provocative, and highly readable. In fact, the Zedillo Report at www. With the transition from communism to a market economy, the IMF c.

Particularly concerned with the plight of the developing nations, he became increasingly disillusioned as he saw the International Monetary Fund globalisatino other major institutions put the interests of Wall Street and the financial community ahead of the poorer nations. Indeed, he makes the point that globalization has been a net loser for sub-Saharan Africa and that countries who have resisted the IMF have been more successful on average than those who didn’t.

Review of Globalization and its Discontents | PIIE

Exploitation and market power comping from huge multinational companies is a reality that needs to be addressed. May 31, Nicole Means rated it really liked it.


The results of this alternative strategy were massively better. By now it is pretty difficult to deny that rapid mass privatization was a disaster. Selling them off to foreign banks may have had xnd advantages in terms of giving them deeper pockets to withstand crises, but it may also result in this institutional capital being allowed to deplete-and to force countries to sell off itw banks at firesale prices in the midst of a crisis gy almost guaranteed to create resentment.

This force aand so strong that iits there were no transportation costs, and if the US and Europe had no other source of competitive advantage, such as in technology, eventually it would be as if Chinese workers continued to migrate to the US and Europe until wage differences had been eliminated entirely.

In East Asia inthe nature of the crises was different from those in Latin America a decade earlier. Taxation, and its adverse effects, are on the agenda; land reform is off. Nevertheless, four stars for the following points that Stiglitz makes: However, globalization is not a new phenomenon, as kts has been around since ancient times.

Here is an interesting article by a counsellor of IMF response to Stiglitz book. See 1 anx about Globalization and Its Discontents…. But if the problem is one of psychology, not economics, income data suggest that it is the neoliberals who would benefit from therapy.

Importing goods from China — goods that require a lot of unskilled workers to produce — reduces the demand for unskilled workers in Europe and the US.

This book actually addresses the reality that hundreds of millions of people face 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. Your name Your email Friend’s name Friend’s email Message. 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.

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But all of this openness and disruption were supposed to make us richer, and the advanced countries could have introduced policies to ensure that the gains were widely shared. Many of those companies went bankrupt anyway, leaving the countries with massive debts and the western lenders almost completely compensated. Stiglitz’s discussion of this point draws heavily on his own research, and raises an issue that was largely overlooked during the crisis.

Please wait, fetching the form. Again, ironically, this is what the IMF was originally created for, but somehow, during the late s and early s, free-market fundamentalists had taken hold of the IMF, and they saw stimulus and deficit spending as undesired government interferences in the free market. Among the big losers — those who gained little or nothing — were those at the bottom and the middle and working classes in the advanced countries.


Globalization and its New Discontents by Joseph E. Stiglitz – Project Syndicate

Email required Password required Remember me? Stoglitz good professor has done a remarkable job here. However, he is approach is quite narrow. Perhaps Stiglitz hopes that the empathy he expresses for their position will win the anti-globalists to his side, so that they will discontentx the sensible positions he espouses in globslisation of gradual trade liberalization, careful privatization, some version of the market economy, and so on.

Eight Centuries of Financial Follyto which I gave blobalisation stars. The IMF had not only provoked the East Asia crisis, but then also proceeded to prescribe the incorrect policies to solve, or at least alleviate, the crisis. By managing national pace of change and speed of liberalization on their own, those countries were able to achieve economic growth. He counters that Malaysia’s GDP growth rate had fallen much farther than the other countries listed by Stiglitz, down to 6.

The countries who received the benefits from the globalization shared their profits equally. Jan 14, Brian Moriarty rated it liked it. No trivia or quizzes yet. Also strong regulation basically doesn’t exist. There are so many injustices in this world, and, sadly, organizations that are set up to help others often fail miserably. A must read for anyone interested in development or international finance. Please help improve it by rewriting it in an encyclopedic style.

Unfortunately, this book is kind of a hit piece on the IMF which is where it shines, Stiglitz is hardly a socialist so his critiques are more effectivebut Stiglitz worked for the semi-rival World Globailsation, and he constantly is excusing the World Bank’s misdeeds and con Very good, and a must read for anyone interested in globalization from the point of view of the globalizers albeit a dissenting onethough obviously one should read books from is point of view of the “common folk” before this.