Foreign Assistance And Debt Relief

1183 Words5 Pages
Making Globalization “Work” Globalization has been and probably will always be a problem for every nation. From poverty in the obvious countries such as Africa and Russia to unemployment all over the world, a lot of people and countries have been hurt financially and economically by globalization. Joseph Stiglitz, a Nobel-prize winner and former chief-economist of World Bank, has taken into consideration all the aspects that could make globalization a positive thing for everyone. As he states in his book Making Globalization Work, there are six main areas that are all recognized by the international community that need a lot of work before globalization can really, really work. Some of the problems are small, and some are huge, and can…show more content…
Although some countries have not really lived up to the commitments (the United States being one of them), they also decided that more assistance should be given in grants, not loans, since sometimes loans do not get paid. Excessive conditionality is also a large problem when it comes to assistance and debt relief throughout the world, the IMF and World Bank being two of the biggest perpetrators, in which they apologized and reduced conditionality greatly in the last five years. In addition, trade liberalization will lead to growth if done correctly. In previous years, the reason that the trade agreements did not work was because they were very unbalanced- the advanced countries taxed their goods that were made by developing countries that were four times higher than the goods that were made by advanced countries. To fix this problem, in Doha, November 2001, an agreement was made to focus on the developing countries needs, not the already developed ones. In response to the agreement of fair trade, the policies of liberalization failed to produce the results that were wanted and promised. The blame was forced on the developing countries in the 1990’s, but now there is more of an understanding in shared blame of the failure in trade liberalization. The Washington Consensus has made trade and capital market liberalization the two key components in
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