Product Description

This powerful, unsettling book gives us a rare glimpse behind the closed doors of global financial institutions by the winner of the 2001 Nobel Prize in Economics.

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.

Product Details

• Amazon Sales Rank: #8599 in Books
• Published on: 2003-04
• Number of items: 1
• Binding: Paperback
• 304 pages

Amazon.com
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

From Publishers Weekly
Stiglitz, a Nobel Prize winner and Columbia University economics professor, sees globalization's unrealized potential to eradicate poverty and promote economic growth. In recent years, the International Monetary Fund, the World Bank and the World Trade Organization have promoted world financial stability, prosperity and free trade, yet Stiglitz wonders why so many revile these organizations' programs to the point of rioting in the streets. Casting a dispassionately analytical eye at East Asia's and Russia's financial turmoil, he argues that the IMF imposed austere policies that only exacerbated each area's problems. When he finds a similar policy pattern for other countries in crisis, Stiglitz asks how a public institution can ignore growing evidence of a flawed policy and not take action or be held accountable. In answering his own question, Stiglitz blames the "market fundamentalism" that endorses the view that a "free" market solves all problems flawlessly. As Stiglitz authoritatively indicates, one-size-fits-all economic policies can damage rather than help countries with unique financial, governmental and social institutions. He calls for public institutions to reform and become more transparent and responsive to their constituents. Stiglitz shares inside information from cabinet meetings when he served on Clinton's Council of Economic Advisers and from his years as chief economist at the World Bank, divulging debates in Washington's conference rooms, naming names and raising his eyebrows at those who refuse to question certain IMF policies' repeated shortcomings. This smart, provocative study contributes significantly to the ongoing globalization debate and provides a model of analytical rigor concerning the process of assisting countries facing the challenges of economic development and transformation.
Copyright 2002 Cahners Business Information, Inc.

From Booklist
Stiglitz, noted economist in the Clinton administration from 1993 to 2000, posits that that "the level of pain in developing countries created in the process of globalization and development as it has been guided by the IMF and the international economic organizations has been far greater than necessary." He observed the debates, knew ideas mattered, and saw his role as convincing his colleagues that good economics was also good politics. However, when he moved for three years to the international arena at the World Bank, he found a decision-making process--especially at the International Monetary Fund--that was based on ideology, bad economics, and policy that often favored interests such as Wall Street over the needs of poorer nations. This critique is presented to open a debate on how globalization is managed, which the author hopes will include representatives of poorer nations directly affected. His aim is for better policies on globalization and, hence, better results. Mary Whaley
Copyright © American Library Association. All rights reserved

Customer Reviews

Incoherent and generally unenlightening
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.

must read!
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.

very informative. many interesting ideas. a bit complex though
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.