1.5 Joseph Stiglitz globalization has not delivered

1.5 Joseph Stiglitz globalization has not delivered - Nobel...

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Nobel Prize in Economics Joseph Stiglitz believes that globalization has not delivered growth and development for poor countries. Explain his argument and provide evidence. - In theory o Trade can be a positive force for development Policies that reduce tariff and other barriers to movement of goods and services can facilitate trade between nations and deliver welfare gains o Allows for the expansion of the size of markets, allowing the global economy to take further advantage of economies of scale while enhancing global efficiency in production and exchange - Many of the poorest countries were actually worst off o Because of the asymmetric way globalization has proceeded o Very critical of the benefits of globalization for developing countries that do not have appropriate infrastructure and institutions in place to reap the gains of liberalized trade and open markets - Why its failed for poor countries o Liberalization wasn’t managed carefully or conducted under the right conditions Can’t liberalize trade rapidly and indiscriminately like the Washington Consensus proscribed because then you get problems o Fear of Developing countries imbalanced agreements Advanced countries didn’t participate correctly Example – the EU and the States both have agricultural subsidies which hurt exports from Africa (like Cotton) These countries blame each other but don’t fix the problems Large industrialized countries use their superior bargaining power to force through agreements which disadvantage developing countries Uruguay Round o Harder for ppl in developing countries to have access to generic drugs death rates from illnesses increased Profits over lives Doha Round Didn’t deliver on development mandate Irreconcilable disputes between developed and developing countries o Focus on agriculture at globalization rounds; NEED TO focus on issues like unskilled services, migration, industrial tariff structure, and non-tariff barriers. o
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1.5 Joseph Stiglitz globalization has not delivered - Nobel...

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