1.4 Joseph Stiglitz globalization has not delivered

1.4 Joseph Stiglitz globalization has not delivered -...

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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.
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This note was uploaded on 04/19/2010 for the course ECON 0430 taught by Professor Arroyoabad during the Fall '10 term at Middlebury.

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1.4 Joseph Stiglitz globalization has not delivered -...

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