Globalization and Its Discontents

When it was first published, this national bestseller quickly became a touchstone in the globalization debate. Renowned economist and Nobel Prize winner Joseph E. Stiglitz had a ringside seat for most of the major economic events of the last decade, including stints as chairman of the Council of Economic Advisers and chief economist at the World Bank. Particularly concerned with the plight of the developing nations, he became increasingly disillusioned as he saw the International Monetary Fund and other major institutions put the interests of Wall Street and the financial community ahead of the poorer nations.

Those seeking to understand why globalization has engendered the hostility of protesters in Seattle and Genoa will find the reasons here. While this book includes no simple formula on how to make globalization work, Stiglitz provides a reform agenda that will provoke debate for years to come. Rarely do we get such an insider's analysis of the major institutions of globalization as in this penetrating book. With a new foreword for this paperback edition.

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Due to massive media coverage, many people are familiar with the controversy and organized resistance that globalization has generated around the world, yet explaining what globalization actually means in practice is a complicated task. For those wanting to learn more, this book is an excellent place to start. An experienced economist, Joseph Stiglitz had a brilliant career in academia before serving for four years on President Clinton's Council of Economic Advisors and then three years as chief economist and senior vice president of the World Bank. His book clearly explains the functions and powers of the main institutions that govern globalization--the International Monetary Fund, the World Bank, and the World Trade Organization--along with the ramifications, both good and bad, of their policies. He strongly believes that globalization can be a positive force around the world, particularly for the poor, but only if the IMF, World Bank, and WTO dramatically alter the way they operate, beginning with increased transparency and a greater willingness to examine their own actions closely. Of his time at the World Bank, he writes, "Decisions were made on the basis of what seemed a curious blend of ideology and bad economics, dogma that sometimes seemed to be thinly veiling special interests.... Open, frank discussion was discouraged--there was no room for it." The book is not entirely critical, however: "Those who vilify globalization too often overlook its benefits," Stiglitz writes, explaining how globalization, along with foreign aid, has improved the living standards of millions around the world. With this clear and balanced book, Stiglitz has contributed significantly to the debate on this important topic. --Shawn Carkonen

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All Customer Reviews
Average Customer Review:
0 of 2 people found the following review helpful:

Incoherent and generally unenlightening, 2008-03-10
Anyone with an interest in global affairs would be aware of the East Asian crises and the Russian attempt at becoming a market economy. These are the two main examples used by Stiglitz to frame his arguments and the policies are well known. They are the same problems the anti-globalization movement protests against outside various international financial meetings so there are no new insights here of any great significance. Some of the less prominent countries like Ethiopia and Malaysia are covered though and these sections are interesting although still using the same themes - co-ercive IMF tactics, capital market liberaliztion or protectionism etc. Stiglitz also contradicts himself at times. In one section he argues for greater transparency and public debate (ie. politicization) of the IMF's policies, then in another criticises the U.S. government for enacting protectionist measures domestically (assuredly for political purposes).
The problem with these 'insider' accounts is that they are by definition subjective. The only examples of the inner workings of these institutions put forward are self-serving anecdotes of when Stiglitz himself opposed, or tried to oppose, IMF policies. There is also very little talk, and even less criticism, of the World Bank which is where he was the chief economist. Would recommend a book by, say, a respected professional journalist who can be a more objective, more dispassionate, and much more coherent.


1 of 1 people found the following review helpful:

must read!, 2008-02-28
Joseph Stiglitz thoroughly disects the brain dead institution called the IMF. Read this book and you will clearly see why African countries and other 3rd world countries are as poor as they are. it's not simply because of corruption and mismangement by their government as we all tend to believe. It's not even a conspiracy of any kind. It's just stupid policies by arrogant idiots forcing unproven "free market" policies on the countries.

My one gripe about this book is that the author seems to abdicate some responsibilty of his former employer, the world bank. They've also been part of the problems is developing countries as well. Maybe not to the extent of the IMF but they are also culpable.


0 of 0 people found the following review helpful:

very informative. many interesting ideas. a bit complex though, 2008-01-11
In this book, he explains how the policies of international economic organizations led to the crises in various countries when their economies were globalized. Most of his contentions center on the idea that the transition from communist to market economy was not handled well by the advocates of the free market if the IMF. Most of this book is about IMF policies and how they failed developing countries.

This book is very interesting. He brings up many interesting points.
The only complaint is that the concepts are very complex and it is recommended that you take an economics course before reading this book. He uses terms that they introduce in an economics 101 course and does not explain the terms. While it is not that complex, if you are inexperienced in economics, some of the parts will be confusing.

This book rarely mentions outsourcing of jobs by developed countries. It is mostly about policies regarding growth in developing countries.


3 of 3 people found the following review helpful:

Problems of Globalization spelled out in a lucid way., 2007-09-23
This is really a wonderful book on the problems of globalization. Stiglitz points out many of the problems of the IMF and its imposing of conditions on those nations who need its help. Stiglitz points out that free market liberalization without the proper infrastructures such as unemployment insurance and market regulations can cause great harm to developing nations. Unfortunately, the IMF pushes for free market liberalization and very severe austerity plans when it gives out loans. The author does a great job in taking an esoteric subject and making it very understandable to a common reader. The book is really a primer in some ways but he also goes into different examples. He also gives some ideas on what are the solutions to the problems. If anyone wants some background on why there are so many protests at World Trade Organization meetings or other types of economic summits, this book will give you the big picture view of the situations. Stiglitz gives constructive and lucid ideas on what are the remedies to the problems. I took a class on Globalism in MBA school and this was a great book reminding me of the problems in a world economy. Stiglitz shows his ideas that globalization is something that needs to profit the poor and improve lives instead of just backing the interests of the rich. He makes a point several times that institutions like the IMF that play a role in affecting the economic policies of a developing nation need to have transparency, accountability, and approval by the people of that developing nation. He does not advocate throwing out the system; he wants globalization to be a better system for all nations.


1 of 1 people found the following review helpful:

World Bank, 2007-06-26
Stiglitz shreds the IMF -- tactfully -- but not tactfully enough to avoid an angry backlash from his peers at the IMF. He highlights what has been wrong and even idiotic about IMF-run globalization and ill-timed structural adjustments, poor sequencing. He thinks democratic leaders should decide HOW they implement global economics, perhaps with some guidance, not just the avaricious Washington Consensus demanding austerity measure and open up for speculative capital flows.

He describes how the World Bank, with himself at the helm, tried to accomplish it's historical purpose -- to spread prosperity and help facilitate trade, not looting. He described some brilliant and compassionate leaders and economists he worked with.

But until recently, it's been Paul Wolfowitz in charge of what Stiglitz used to do. Woe be unto all of us.

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