Debating Gloalization Essay Example | Topics and Well Written Essays - 1750 words

Debating Gloalization - Essay Example Joseph Stiglitz is considered as one of the major voices in the world speaking against the potential detrimental nature of the overall process of globalization. His main arguments therefore suggest that globalization can be good if it is executed properly by taking into the consideration of the individual characteristics of each country. (Friedman, 2002). He is of the opinion that the countries should be allowed to embrace globalization on their own terms rather been enforced on them. He also argues that if the pro globalization policies are not being carried out properly, it is quite possible that the countries can become more vulnerable to the external shocks and this can create economic instability as well as resulting into a decline in growth and increase in poverty. (Stiglitz, 2002). This paper will discuss and explore the ideas of Joseph Stieglitz on globalization and will present a critical intellectual biography of Joseph Stiglitz. Intellectual Biography Ideas Stiglitz has wo rked on different issues and presented his ideas on diverse range of ideas ranging from economics to political economy. He is often considered as a New Keynesian for his views on the better role of government in running the overall affairs of the economy. He is therefore also considered as neo-liberal thinker because of his strong opposition of the corporate led globalization. He is often considered as critical of IMF and World Bank- two of the most important institutions advocating the globalization and help fulfilling the overall agenda of globalization. (Stiglitz, 2003). His major ideas on globalization are based on his theory of information asymmetry and how the lack of correct information can result into the development of incomplete markets at the global level. He is therefore particularly of the view that advocating globalization in such economies where markets are not fully developed and information is not available can result into more poverty and economic inequality rather than creating prosperity. He is also considered as quite critical of IMF because of its ignorance that the overall process of globalization may not work in the presence of inadequate institutions as well as the incomplete markets. (Stiglitz, 2003). His ideas on globalization therefore are based on the presence of more transparent institutions and greater role of Western countries in helping the less developed countries to better integrate themselves into the global economy. His economic ideas are also mostly considered as New Keynesian. Trade In order to understand the Stiglitz ideas on the free trade and its role in the globalized world, t is important to consider the overall arguments in favor of free trade. The advocates of the globalized and free trade believe that free markets and trade can actually increase the overall opportunity set for the countries and they can readily benefit from this. What is however, important to consider that as per Stiglitz this is not the case? Tho ugh he believes that this may be a text book approach however, in reality free trade and markets do not necessarily result into the growth. The overall arguments are based upon the notion that the free trade and investment can only result into the growth when they are competitive. Since the markets of the developing countries are still