Making Globalization Work Preface

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Making Globalization Work Preface

  1. 1. Making Globalization Work: Preface Julie A. Puccini
  2. 2. Joseph E. Stiglitz <ul><li>Born 2/9/1943 in Gary, IN </li></ul><ul><li>Education </li></ul><ul><ul><li>Spent 40+ years studying strengths & weaknesses of market economy </li></ul></ul><ul><ul><li>B.A. from Amherst College in 1964 </li></ul></ul><ul><ul><li>Ph.D. in Economics from M.I.T. in 1967 </li></ul></ul><ul><li>Nobel Prize in 2001 </li></ul>
  3. 3. Work History <ul><li>White House </li></ul><ul><ul><li>From 1993 to 1997 under President William Jefferson Clinton </li></ul></ul><ul><ul><li>Member then Chairman of the Council of Economic Advisors </li></ul></ul><ul><ul><li>Declined President’s request to stay on board and join cabinet </li></ul></ul><ul><li>World Bank </li></ul><ul><ul><li>From 1997 to 2000 </li></ul></ul><ul><ul><li>Senior Vice President and Chief Economist </li></ul></ul><ul><li>Current Professor at Columbia University in NY </li></ul><ul><ul><li>Previously taught at Princeton, Oxford, Stanford, M.I.T. </li></ul></ul>
  4. 4. Globalization and Its Discontents <ul><li>Written just after leaving World Bank </li></ul><ul><li>About the failure of international financial system to make globalization work </li></ul><ul><li>Chronicled period of chaotic and difficult years </li></ul><ul><ul><li>East Asian financial Crisis </li></ul></ul><ul><ul><li>Former Soviet Union’s transition from communism </li></ul></ul><ul><ul><li>World’s economy – competition, uncertainty, instability, laziness and greed </li></ul></ul>
  5. 5. Making Globalization Work <ul><li>“ Development [is] possible, [but] not inevitable” </li></ul><ul><ul><li>China’s domination of manufacturing in global scene </li></ul></ul><ul><ul><li>India’s success in outsourcing </li></ul></ul><ul><li>Need to change policies and thinking </li></ul><ul><li>Successful developing countries share some common policies </li></ul>
  6. 6. Making Globalization Work <ul><li>Change is inevitable… the question is </li></ul><ul><li>when… </li></ul><ul><ul><li>Global financial crisis of 1997-1998 </li></ul></ul><ul><ul><li>Latin American crises of the early 2000s </li></ul></ul><ul><ul><li>Falling dollar beginning in 2003 </li></ul></ul><ul><ul><li>… before it’s too late? </li></ul></ul>
  7. 7. Current Globalization Problems <ul><li>Underlying flaws in market fundamentalism (the belief that markets, by themselves, lead to economic efficiency) </li></ul><ul><li>Need right balance between private and public sectors </li></ul><ul><li>Advance policies promoting equality and full employment </li></ul>
  8. 8. Connections Between Economic & Cultural Values <ul><li>“ Globalization is the field on which some of our major societal conflicts – including those over basic values – play out.” </li></ul><ul><li>- Joseph E. Stiglitz </li></ul>
  9. 9. Connections Between Economic & Cultural Values <ul><li>CONSERVATIVES/ “FREE MARKET” ECONOMISTS </li></ul><ul><li>Actions towards equality are costly and counterproductive </li></ul><ul><li>Markets, without government intervention, are efficient </li></ul><ul><li>Let economy grow and somehow benefits will trickle down to the poor </li></ul><ul><li>Inequality due to efforts; wealth is reward for hard work </li></ul><ul><li>Tend to be less concerned about noneconomic issues: </li></ul><ul><li>social justice universal access to health care </li></ul><ul><li>environment consumer protection </li></ul><ul><li>cultural diversity </li></ul>
  10. 10. Connections Between Economic & Cultural Values <ul><li>AUTHOR & OTHER ECONOMIC LIBERALS </li></ul><ul><li>Free markets produce inefficiencies like too much pollution or too little basic research </li></ul><ul><li>Disturbed by inequality and poverty; understand the costs of ignoring the problem </li></ul><ul><ul><li>*Attribute inequality to luck – “sperm lottery” and real estate bubbles </li></ul></ul><ul><li>Believe government interventions can work </li></ul><ul><li>Globalization does not have to damage the environment, increase inequality, weaken cultural diversity, and advance corporate interests at the expense of ordinary citizens’ well-being </li></ul>
  11. 11. Making Globalization Work <ul><li>“ An informed citizenry is more likely to provide some checks against the abuse of the special corporate and financial interests that have so dominated the globalization process” </li></ul><ul><li>- Joseph E. Stiglitz </li></ul>
  12. 12. Questions?
  13. 13. Discussion What is the “right” balance between private and public sectors? What regulations, if any, should it adopt to protect workers, consumers, and the environment? OSHA fines, Environmental Protection Agency regulations What services should the government provide? welfare, universal healthcare, education Should there be public pension programs? social security vs. 401k and the privatization of social security Should government encourage particular sectors with incentives? farm subsidies, tariffs imposed to protect steel industry
  14. 14. Discussion <ul><li>Conservative vs. liberal economists – which are you? </li></ul><ul><li>CONSERVATIVE </li></ul><ul><li>Actions towards equality are costly & counterproductive </li></ul><ul><li>Markets alone are efficient </li></ul><ul><li>Let economy grow and benefits will trickle down </li></ul><ul><li>Inequality due to efforts; wealth is reward for hard work </li></ul><ul><li>Less concerned about: social justice, universal access to health care, environment, consumer protection, cultural diversity </li></ul><ul><li>LIBERAL </li></ul><ul><li>Free markets produce inefficiencies </li></ul><ul><li>Disturbed by inequality and poverty & understand the costs of ignoring the problem </li></ul><ul><li>Believe government interventions can work </li></ul><ul><li>Globalization does not have to damage the environment, increase inequality, weaken cultural diversity, and advance corporate interests at the expense of ordinary citizens’ well-being </li></ul>

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