Making Globalization Work by Joseph E Stiglitz - Essay Example

? Making Globalization Work By Joseph E. Stiglitz Introduction to the and Book Making globalization work is a book written by the noble prize award winner author Joseph E. Stiglitz. The author has serviced the World Bank organization as a senior vice president and chief economist from 1997 to 2000. The surprises of globalization have been brought in this book by the author. The book upholds comprehensive knowledge about the business ideals in context of globalization and its emerging trends. The culture of globalization has been detailed in this comprehensive literature. Context 1 Globalization as a Problem At the first, the author comes out argumentative towards globalization. The author describes globalization as a problem only because it is something, which is being mismanaged by institutions (Stiglitz). The author arguments that international institutions such as the World Trade Organization, the International Monetary Fund or the World Bank have made poor organizations poorer. It is because the benefit has been transferred to the developed nations and because the institutions have prioritized profits over environmental health, the peoples’ lives in the poor countries have been compromised. The author puts responsibility of mismanagement to the international institutions, which look for the size, the volume of an economy and the power in a respective nation to provide benefits and opportunities. The author actually tries to put a light on the context that globalization is a problem if it gets mismanaged or uncontrolled (Stiglitz). Leading the argument the author comes with an objection that United States, which is largest in economic volume, gets the veto power from the IMF. Similarly, the country being the largest in all economies appoints the head of the World Bank, the organization which deals with the sanctioning up of loans to world’s poor countries. On further, the author uncovers the Washington consensus by calling it as an exchange of power between the two dominating figures “The US treasury and the World Bank Organization”. The review of this perception tells that wealthy countries are not accountable as accountability is all what is imposed on poor nations (Seal 5-6). Stiglitz settles the argument by describing the implications of Washington Consensus, which is a consensus build up just to weaken the already deprived countries. The author asserts the policies of the Consensus, which declare lending machinery, which is often counterproductive instead of out-bringing for the poor nations. The policies actually favor the bureaucracy, the capitalist regime and the high rise authorities which only fall in the idea of profit maximization (Lopez 10-14). The author explains that mismanagement of globalization is caused by four major practices; high privatization, low investment, low taxes reforms on imports, and high volatility of the foreign capital. The argument of the author extends on the consequences of these practices which have been adopted by the poor nations as proposed by the power block (The World Controlling Economic Machinery). All the countries have got from these practices and policies is that they have gone to more economic instability. It is deprivation of the countries, which they have received from these undermining practices and policies (Stiglitz 5-7). Context 2 Managing Globalization as a Solution The book has provided extensive knowledge on how globalization can become the benefit of the deprived (Lopez). It has explained the propositions of the author that how globalization can be turned to the benefit of the underprivileged world. Balancing out the trend of globalization and its affects is the second context/segment of the book, presenting globalization as a solution if it gets managed in accordance to the improvement of people’s lives (Putterman). Stiglitz proposes certain solutions in regards of globalization and the trend of it. The author talks about the changes and reforms in the globalization system of management. It talks about changing the motives and norms of the power governing states, which are entirely in the direction of power and acquisition. With an eloquent expression the book has asserted practices of secrecy and dishonesty, which are prevailing in the system of globalization (Barnes & Noble). Actually, these are the norms which have to be removed as proposed by the author to make globalization turn into the favor of the societies, the people of the societies, improving their conditions and lives’ situations (Stiglitz 8-10). Reform is also what is needed in the treasury system, which overfunds the developed countries for their overconsumption. Reform in the treasury can outstandingly change the situation of the poor countries. By the reform the flow of capital will be balanced out and regulated in a manner that each country and society can grow and flourish. Another proposition is that the political element n the system of globalization should be removed. It is the political biasness that has ruined the culture of the system. It needs to be sorted out or simply get removed to restore the integrity of the globalization management system (Stiglitz). Stiglitz stays up with the argument that the bribery system should be taken out from the poor countries, which is actually responsible for government and international companies’ deals. The deals have actually destroyed the environment of the countries, their forest, and their lands and this is because of the briberies present in the poor countries of the world. If the bribery is removed, the half of the problem of the deprived nations is gone. This is what the review tells and so as the assessment of the author’s explanation (Stiglitz). Apart from all, there is an eloquent expression that comes out in the book against the corporate culture, which is feeding the power occult and the power keepers. The need is to restore integrity as proposed by the author by means of adopting moral obligations. Only by adopting the concept of morality can change the system of corporations, which is going at a very short term benefit and not the long gain from the trend of globalization. A major reform is needed in the corporate system, to track globalization in the benefit of all and not just for the benefit of one segment (the authoritative). In an overall context, the author describes globalization as a universal thing to attain benefit. He proposes that if power regulators change their ideas and thinking styles, they can really bring the difference in the world by using the trend of globalization at the favor of the people’s living. The spirit of the book is that management of globalization creates universal solutions and mismanagement of it deliberately creates universal problems. The author comprehensively addresses the challenges the poor countries are facing by providing a solution of global management (Stiglitz). The book gets summarized in the final word of the author which says that United States can never change the situation of the world’s economics until it work in the favor of offering results to the poor nations. This is the only global solution the power governing state has got for regulating the world economics (Seal 5-8). Conclusion Continuing the argument of the book “Globalization and its Discontents”, the author Joseph E. Stiglitz expands with his view, thought and perception in this book “Making Globalization Work”. The author has captured the lights on globalization by discussing the challenges the globalization has brought to the poor nations due to mismanagement of it. The text has talked about the roles of the ideals, the institutions, which have taken the responsibility to control world’s economics and the responsibility to improve people’s lives in the most deprived parts of the world. The motive of the institutions should be to balance out the affect of globalization, by providing equal opportunities and equal favors to all parts of the world. This is what the author is essentially proposed to the dominators of the world and to the policy makers who are taking the least benefit of the trend of globalization. Works Cited Barnes & Noble. Making Globalization Work. 2013. 2013 йил 8-November . Lopez, Greg. Introduction. 2013. 2013 йил 2013-November . Putterman, Louis. “Book Reviews.” Journal of Economic Literature XLIII (2005): 135-196. Seal, Rebecca. Great diagnosis, but what's the cure? 2006 йил 24-September. 2013 йил 8-November . Stiglitz, Joseph E. Making Globalization Work. New York: Norton & Company, 2007. Stiglitz, Joseph. Review. 2013. 2013 йил 8-November . Read More