Globalization and its discontents, stiglitz
467 mots
2 pages
Stiglitz Globalization and its discontentsThe Nobel laureate Joseph Stiglitz published in 2002 a book entitled « Globalization and its discontents » simple and accesible to a wide audicence.
This book constitutes a criticism of international institutions « underlining » the devastating effect of the global economic policies conduct by the International Monetary Fund and the World Bank. Stiglitz, who has been chief economist at the world bank from 1997 to 2000, wrote his book because he was disillusioned with the international institutions. According to him, the IMF and the world bank acted against the interests of developing countries.
When a crisis appears in one of his member states, IMF lends money provided that the country follows his economic policy: it’s a new form of colonialism.
More precisely, Stiglitz argues that the theories which guide the IMF economic policies are totaly flawed.The IMF was originally created to get things right by following Keynesian guidelines, but was after seduced by neoclassical principles.
When the debt crisis started in 1982, IMF imposed structural adjustement plans( known as Consensus of Washington) on developed country. These plans caused terrible consequences for the populations and the economies of the south. This failure doesn’t result from an wrong comprehension of the economic outlook. In fact, these plans make sens when we understand that the IMF wants to promote financial markets. More precisely, these plans promote western companies interests. In this book, Stiglitz offers a list of case studies in bad economics and policymaking by the IMF and to a lesser extent by the world bank and the world trade organization.
For example, in 1989, the IMF and the world bank demand the abolition of vital consumer goods subsidies,and Venezuela saw a spectacular rise in the price of raw materials. This caused riots and made more than 4000 victims.
Although there is some criticism of policy, the book primarly