Study questions – Making Globalization Work (Joseph H. Stiglitz)
1. The five concerns raised by critics of globalization that Stiglitz discuss in Chapter 1 are: * The rules of the game that govern globalization are unfair, specifically designed to benefit the advanced industrial countries * Globalization advances material values over the values, such as a concern for the environment or for life itself * The way globalization has been managed has taken away much of the developing countries’ sovereignty, and their ability to make decisions themselves in key areas that affect their citizens’ well-being. In this sense, it has undermined democracy. * While the advocates of globalization have claimed that everyone will
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Meanwhile, Latin America embraced the Washington Consensus policies more wholeheartedly than any other region (indeed, the term was first coined with reference to policies advocated for that region). In earlier decades, Latin America had had notable success with strong government interventionist policies that were neither as refined as those employed in East Asia nor as subtle, being focused more on restriction of imports than on expansion of exports. High tariffs were placed on certain imports, to encourage the development of local industries, a strategy often referred to as import substitution. Most countries adopting Washington Consensus policies. As high inflation broke out in many of the countries, the Washington Consensus’s focus on fighting inflation made sense. While East Asia saw enormous reductions in poverty, progress in Latin America was minimal.
4. Governments still have a role to play. In order to produce a more egalitarian world and help the poorer countries to become richer, you cannot simply leave everything to the global marketplace. Market forces often tend to accentuate inequalities, rather than reduce them. That means what you are looking for is a new kind of relationship between governments and markets. Some of the best writing on this is by Joe Stiglitz, who was a famous economist at The World Bank. He wrote a series of articles about the International Monetary Fund, criticizing what he calls the "Washington Consensus." Stiglitz argues
From all of this is plain to see that globalization can have positive and negative effects upon a society, but a country that refuses to open its doors to the world face economic stagnation and poverty for its people. Those
Globalization’s impact on sustainable prosperity is examined in the source. It does this by asking a question. Also examined is the impact on all people and this would include both developing nations as well as developed nations. The source is also somewhat leading the reader to question the extent of the impact, which implies that there is a positive impact on sustainable prosperity. Also the fact that it states, “for all people” implies that all people benefit. While globalization may contribute to sustainability to a limited extent or in certain circumstances, on the whole, globalization degrades rather than builds sustainable prosperity. This will be explored through looking at globalization’s systems and forces, specifically consumerism, the media and transnational corporations.
That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.
The term "globalization" is defined as "growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. All definitions appear to agree that globalization has economic, political, cultural, and technological aspects that may be closely intertwined" by the International Monetary Fund . "Benefits" is defined as "advantage or profit" and "cost" is defined as the "effort or loss necessary to achieve something" by the Oxford dictionary of Current English.
Globalization has had both a positive and negative impact throughout the world. An interconnectedness within the world where complicated issues can arise creating an unevenness that can contribute to a societies as well as the individuals happiness in life (El-Ojelli, 2006:p1). The negative impacts of
The insurgents of globalization are exacerbating income inequality, within developing and developed nations. One of the most powerful country’s in the world the United States an Industrialized nation are allowing large corporations to seek maximize profits without regards for the local
Globalization has done a tremendous disservice to those that seek to create wealth and resource equality. Globally it has created a system where as the counties with access to strong markets, copious resources, and relatively educated populations will succeed, while those countries that lag behind in categories such as those willhave a difficult time maintaining in the global economic system.
Within the last 60 years, Third World development has been a global priority, at the top of virtually every Western agenda. And with the rise of the global population and poverty levels continuing to rise along with it, it is very easy to see why human development is becoming such a topic of focus and discussion among members of the academia. But one question that everyone wants the answer too is, how does Third World development fit into Globalization? Despite apparent compatibility, when closely examined it is clear to see that Globalization actually contradicts Third World development due to the conflict of agendas. Both Globalization and Development hold views concerning market reform, social structure and regulation, which are
By not discussing the state of our middle class at home, Friedman effectively neglects the most pressing concern for a majority of Americans. Aspects of this discussion can certainly be inferred from the reading, but the lack of explicit conversation suggests the author is more interested in representing the optimistic view of globalization. He is clearly aware of the downsides, but in many respects, allows the reader to put the pieces together for themselves.
Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty. But the opponents general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”
Globalization is defined as a worldwide development, the process of spreading ideas. More recently, globalization has become more focused on economics, the spreading of capitalism and opening international trade. Globalization through the past 50 years has developed a bad reputation, one that does not benefit countries the way people thought it would. Joseph E. Stiglitz, in his book, Globalization and Its Discontents, stresses that modern globalization is a good thing, but has not been done correctly in the past few decades. The ideas behind globalization have the potential to benefit the world, specifically developing countries. Stiglitz goes into detail about how the problem falls with the misguided attempts of the international economic institutions to solve developing countries’ economic problems. Something has gone very wrong with globalization, and the purpose of this book is to shed some light on where it went wrong. Stiglitz presents the problems with the international economic institutions’ damaging policies and their effects using ethnographic field work and historically comparative methods.
Globalization offers a higher standard of living for people in rich countries and is the only
It is known that the economy is definitely effected by globalization, but not always in a negative way. In a sense, the world revolves around some situations dealing
Across the world, globalization is one of the most significant aspects that has occurred over the last fifty years. It allows a country to integrate economically with other countries through a global network comprised of people, trade, and transportation. With the global landscape only becoming more intertwined, globalization and its inherent pros and cons seem to be here to stay. In many areas, global powers tend to lack in rectifying the negative aspects and only focus on the positive side. America, for example, is a leader in the globalization efforts, even though it has greatly effected job opportunities at home, widening income gaps, and an increased standard of living due to fluctuating world markets.
Global stratification can be defined that globe countries and areas are not on an equal footing in the process of economic, political and cultural globalization (Andersen & Taylor, 2006). The economic globalization has exacerbated the imbalance of world economy and has widened the wealth gap. Globalization has brought unfair relationships between developing countries and developed countries. Gao (2000) noted that economic globalization has expanded the gap between South and North. And it has brought huge shocks to national economy of developing countries. The international economic organizations like the Word Bank, IMF and WTO are in the hand of developed countries (El-Ojeili, C. & Hayden, P., 2006.). All the principles, institutions and sequences for the world economic operation are made by them. (Sklair, 2002)What’s more, the economic, technical and management advantages that is owned by Western countries cannot be easily and fully surpassed by developing countries.