Globalization And Its Discontents
Globalization is the act or the process by which countries all over the world have an exchange of ideas, culture, technology and also communication with one another. This is done at an international level where countries are able to interact and share their findings and the discoveries that they have made in their home countries. This is majorly done through the use of international institutions which help in integrating these countries hence forming some togetherness. Globalization is thus good, but just like any other thing which is good it also has its own effects. It will be advantageous to some and as well be a threat to others. Through globalisation the world has had a chance of integration and moving with a lot of togetherness.
Apart from this, problems have rose some of which being caused by the international bodies that they depend upon, this is according to a known economist from America, Joseph Stiglitz.
In his book, globalization and its discontents, he observes that the problems that the economy is facing today are as a result of poor policy making. He describes poor policy making as the source of all evils in the economy today. He blames international organizations such as; IMF(International monetary fund), WHO(word health organization) and WTO(word trade organization) and claims that as a result of their poor policies the world has drained economically, something which according to him can be rectified. He describes globalisation as the freedom to make a choice among the available opportunities globally .
He singles out IMF who their initial mission was meant to ensure there is stability in the world economically, but unfortunately instead of fulfilling this mission they have been focussing on poor policy making as they lack transparency and are not accountable to those they serve. In chapter 8 of this book therefore, Stiglitz focuses on the other agenda of IMF as the number of poor persons continue to increase world wide. He states that IMF needs to note the reason as to why the markets are failing, and then start focussing on the solution to such problems or the remedies to conquer this market failure. In this chapter Stiglitz looks at the inconsistencies that are been caused by IMF policies. These policies are such as; IMF not containing the disease of crisis, as it allows crisis to spread to other countries instead of containing it, failure to understand on the balance of payment deficits and not exactly knowing the use of money. It also makes itself to be the last solution when it comes to issuing of loans to countries something that IMF has been using to gain although this role was meant for central bank .
He focuses on the solution that IMF should give out, where he states that it should stop focusing or favouring the European countries only but as well should focus on the other countries which are termed as debtors, and thus try to bring forth a short solution to the instability that is prevailing.
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