Professor Joseph Stiglitz, a Nobel Prize-winning economist and
author, presented his views on globalization to an audience of
students, faculty and community members at a public lecture on
campus Wednesday.
The event focused on the adverse effects of globalization on the
economies of developing nations.
A main part of Stiglitz’s lecture emphasized the problems
with globalization for the economy of developing nations by
contrasting the actions of East Asia and Latin America.
He said East Asia’s economic success results from its
selective use of certain aspects of globalization, including
increased export opportunities.
“They took the opportunity of globalization and shaped it
for their own benefit,” he said.
Stiglitz credited the poor economic performance of Latin
America, especially Argentina, to the globalization policies
enforced by the International Monetary Fund ““ an
international financial organization stationed in the United
States.
“There is a clear relationship between the policies that
were pushed by the IMF in Argentina and the status of their
economy,” said Stiglitz.
Some of the IMF policies Stiglitz cited as having negative
impacts on the economies of developing nations were the
privatization of social security, the increase of interest rates,
and a particularly strong emphasis on decreasing inflation.
“The kinds of policies that the IMF is enforcing are
partially different than the kinds of policies that have worked
well in the United States,” he said.
These policies are aimed at alleviating economic crises in
developing nations, he said, but they are having the opposite
effect.
Instead, the IMF’s policies are leading to increased
economic pressures, according to Stiglitz.
“They are really pushing a particularly narrow ideological
… agenda and the consequences, I think, have been the failures I
mentioned,” he added.
Stiglitz did emphasize the ability of globalization to provide
economic benefits. However, this would require change in the
policies enacted by the IMF ““ changes he said it is beginning
to enact.
“I am very convinced that globalization can be a powerful
force … but if that is to be the case there really have to be
some fundamental changes in the way that globalization is
managed,” he said.
Stiglitz’s views were well received by audience
members.
“He was perfect. I agree with everything he said, because
I came from a developing country, Brazil, and I could see and
experience all these policies from the IMF. I know how they damage
our economy and distort our industrial structure,” said Thais
Catelan, a fifth-year economics student.
This event was one among others scheduled for this quarter as
part of the Globalization and Civil Society series of public
lectures.