Globalization And Its Discontents : Book Review II

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Globalization and its Discontents: Book Review II
Joseph E. Stiglitz in his book, Globalization and its Discontents, seeks to explain how an institution that is set to ensure economic and political stability in developing nations often fails to contribute to their progression. Loans made by international institutions, such as the IMF, and the World Bank, are often promoted as to have the ultimate aim of enhancing a state’s domestic economic stability and international capabilities. The author mainly focuses his arguments on critiques of the IMF and its actual motives for lending enormous amount of money to countries facing dire circumstances. In addition, Stiglitz elaborates on his argument as he contends on issues affecting developing nations that come as consequence of receiving loans from international lenders. Such issues are result of liberalization, privatization and deregulation of markets.
The author notes that loans made by international institutions, mainly focusing on the IMF, may result beneficial to many developing states, and few times allow them to prosper more than they otherwise would have on their own. His argument is not that the loans themselves are harmful, rather, it is the conditions that come attached to such loans that often induce and accelerate economic default in countries seeking to obtain prosperous results from the borrow. The international system is one of taxation without representation, where constituents of recipient and donor countries
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