Globalization—the closer integration of the countries of the world as a result of the lowering of transportation and communication costs and the reduction in man-made barriers—has become one of the central issues of the day."Globalization itself is neither good nor bad. It has the power to do enormous good"

1. Review of “Globalization
and Its Discontents”
Review by:-
Minhazur Rahman Rezvi
Dept. of Development Studies, University of
Dhaka.

2. Joseph E. Stiglitz is an American economist,
public policy analyst.
-Chief Economist of the World Bank till 2000.
-Shared Nobel Prize in Economics in 2001
-Served as Chairman of Clinton’s Council of
Economic Advisors.
-Currently Teaching at the Columbia
University

3. GLOBALIZATION
• Globalization—the closer integration of the countries of
the world as a result of the lowering of transportation and
communication costs and the reduction in man-made
barriers—has become one of the central issues of the
day.
• "Globalization itself is neither good nor bad. It has the
power to do enormous good"

4. Economic Globalization Has Worked For Some Countries
When it has been managed well—as in East Asia—globalization
has been at the center of marked improvements in standards of
living and the reduction in poverty
– Taking advantage of global trade (exports)
– Taking advantage of international investment
– Taking advantage of advanced technology

5. Continue..
• Globalization has not increased economic or political
stability. In a closely interconnected world based on free
trade, a developed nation that forces its goods on a
developing nation may cause instability and economic
problems in the developing nation, such as greater
unemployment or financial (bank) failure. Interference
by global financial institutions that are ignorant of a
developing nation's conditions and needs may lead to
severe economic disruption that plunges the nation's
citizens into poverty.

6. Western Lobby
• The international organizations - the IMF, the World
Bank and the WTO – serve the interest the ‘Western’
industrially developed nations, especially the USA.
• Western governments are free to impose tariffs on
imports from developing countries to protect their
domestic industries.
• free-market ideology:- "one-size-fits-all"

7. Unfair Rules of the Game
• Developing countries actually hurt
– Asymmetrical liberalization
• Western countries hypocritical
– Tell developing countries to quickly get rid of subsidies, liberalize
– But they maintain huge agriculture subsidies
– And increasingly use non-tariff barriers

8. IMF Failures
• Largely Responsible For Crises—pushed Capital Market
Liberalization
– Even though there was no evidence that it was good for
growth
– Even though there was ample evidence that it lead to
instability

9. IMF Failures
• In development
– Countries that have IMF programs not done particularly well
– “Experienced pain, still waiting for gain”
• In transition from Communism to market
– Most have seen GDP fall dramatically (Russia & Thailand)
– And poverty increased
• There were alternatives
– Countries that have followed alternatives (China & Poland) done better
– Clear link between IMF policies and failures

10. Reforming Globalization
• Need for reform of globalization—not abandonment
• The author recommends that the IMF include government
officials from client nations in its decision-making process so
that national needs are addressed
• The author suggests that the IMF take the pace and sequence of
client nation reforms into account before rapidly imposing
liberalization policies.
• Reform is possible, but it will not be easy

11. Thank You