Summary Of Globalization And Its Discontents

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As Joseph E. Stiglitz mentioned in earlier chapters of Globalization and its Discontents, the major positive outcome of Globalization is the close integration it created between unexpected countries. The introduction of Globalization showed the wall between the developed and undeveloped world crumble and started the working economic relationship between the two. Due to Globalization, any country could become involved in the transfer of goods, services, capital, information, and even people. This concept helped promote the idealistic belief that the world could be unified and work together to the benefit of all. All the positive outcomes of Globalization lived on the surface level. If one didn’t look too deeply into the concept, he or she would believe that each country was working on bettering the world for not only…show more content…
In my opinion, the biggest downfall of globalization was that stable governments believed policies worked in a “one-size fits all” manner and remained uneducated on the economy and government workings of the other countries they wanted to do business with. Unfortunately for the other countries involved, this behavior and ignorance was usually a precursor to their downfall. The greatest example of this came in Chapter 5, “Who Lost Russia?” As stated in the text:
The IMF told Russia to privatize as fast as possible; how privatization was done was viewed as secondary. Much of the failure of which I wrote earlier— both the decline in incomes and the increase in inequality— can be directly linked to this mistake. In a World Bank review of the ten-year history of transition economies, it became apparent that privatization, in the absence of the institutional infrastructure (like corporate governance), had no positive effect on growth. The Washington Consensus had again just gotten it wrong. (Stiglitz
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