Joseph Stiglitz' Views on Globalization Policies

In Joseph Stiglitz’ (Columbia University) article, “We Have to Make Globalization Work for All”, he addresses both the benefits and the problems associated with Globalization and the need for reforms within the system. Frankly, I was quite surprised at what I learned. Though the article was brief, Stiglitz brought to light issues that I assumed would never have even existed.

For instance, I think most Americans, or citizens of any developed country for that matter, would assume that Globalization Development policies would be designed more fairly, promoting a global economy for the betterment of all. However, as Stiglitz makes us aware this is not the case. Unfortunately, developed countries such as the United States have used their power as developed nations to get the upper hand and ultimately take advantage of developing countries in trade negotiations and policy creation.

Instead of creating policies that aid everyone involved, the policies are skewed in favor of the more powerful nations, and are crafted in such a manner as to continue to give those powerful nations an advantage across the board. This of course, is blatantly unfair. The intention of Globalization policies is to bring cohesiveness to the world as a whole, for mutual benefit of everyone involved. However, when policies are created in favor of one party over another, the benefits are no longer mutual. This, in my opinion, is highly unethical. I find it discouraging to know that our world leaders would create policies such as this.

But Stiglitz’ point is that, while acknowledging these problems and inequities within the system overall, Globalization is vital if we are to have hope of lifting “millions out of poverty.” In effect, the idea is sound; but reforms are needed to make the policies work as originally intended. To this, I would agree wholeheartedly. If we as human beings wish to assist fellow human beings in developing nations, we must impress upon our policy-makers the importance of “playing fair” and extending opportunity to everyone, equally.

Europe and the United States’ use of economic and military muscle to enact policies that give them unfair advantages is wrong, and needs to be reformed. Stiglitz’ belief is that as “the superpower with the strongest economy”, we must “be willing to play a special role”. The U.S. should be setting a positive example by creating policies that do indeed benefit all involved parties, and should not be creating policies that enable us to take advantage of less-developed countries. As a superpower, it is our responsibility to be above board and do the right thing.

Stiglitz even discusses the self-interest issue. Even if our policy-makers choose not to do the right thing for the right reasons, if only for reasons of self-interest, it still makes more sense that policies implemented benefit all parties equally, as eventually, our global-connectedness affects us all. Bad, unethical policies designed to give unfair advantages to more powerful players in the ‘globalization game’, will eventually hurt those same nations down the road. Whether policies are created out of moral obligation, or for selfish purposes, Stiglitz’ argument is that they need to be better managed and reforms must be implemented if the overall system is to be successful, for the good of all mankind.

What are your thoughts on this issue?