Globalization and Its Discontents Revisited

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Globalization and Its Discontents Revisited Page 63

by Joseph E. Stiglitz


  Myriad Genetics, 42, 396

  National Economic Council (NEC), 196, 265, 266, 365

  national income, 8

  national investment, 61

  nationalism, 376

  nationalization, 229

  national savings, 14, 61, 62, 407

  National Security Council, 184

  national treatment, 36

  nativism, 376

  natural gas, 167

  neocolonialism, 59

  “neo-liberal” policies, 169

  Nepal, 178, 313

  Netherlands, 18, 167, 273

  Nevada, 38

  New Deal, 151

  New Deal Democrats, 258

  New Democrats, 175, 258

  New Development Bank, 37

  New Economy, 144

  New England, 57

  new silk road initiative, 379–80

  New York Federal Reserve Bank, 241

  New York Times, 319

  Nigeria, 133, 191

  Nike, 102

  Nixon, Richard, 75

  Nobel Prize, 173, 174, 254, 272

  nondiscrimination, 382

  nongovernmental organizations (NGOs), 150–51

  nonmarket status, 69

  North Africa, 26

  North American Free Trade Agreement (NAFTA), xxxiii–xxxiv, 11, 23, 24, 26, 27, 36, 48, 102

  as check on president’s power, 64

  need for updating of, 70–71

  Perot’s criticism of, 53, 347

  North Sea, 167

  Norway, xxviii, 300, 372, 398, 414

  nuclear proliferation, 268

  Obama, Barack, 353–54, 381, 400, 408, 412

  TPP pushed by, 26, 27, 28, 42, 382

  Obama administration, 27, 48, 94, 365–66, 374, 416, 421

  obesity, 56

  oblasts, privatization and, 249

  Obote, Milton, 136

  Office of Science and Technology, 41, 333

  offshore financial centers, 38

  “off track,” 139

  Ohio, 13

  oil, 390

  oil prices, 201, 226, 237, 278–79, 288

  oil-rich countries, 372

  oligarchy, Russian, 226, 235, 237–38, 250–51, 255, 261, 278, 435

  1 percent, xvii, xviii, 5, 20, 53, 93, 95–96

  One Belt, One Road, 379

  O’Neill, Paul, 263, 264, 265, 315

  opioid addiction, 56

  Opium Wars, 137, 157, 421

  Orbán, Viktor, 360

  Organisation for Economic Co-operation and Development (OECD), xlix, 188, 359, 363, 397

  outsourcing, xxiii, 23

  “overbloated labor force,” 153

  ozone depletion, 312

  Pacific Alliance, xxxiv, 73, 375

  Pakistan, 166, 323, 414

  Panama, 38, 415

  Panama Papers, 39

  Papua New Guinea, 117

  Paris Agreement, xxxvii, 17, 371, 381

  Paris Commune, 253

  pauperism, 173

  pension funds, 35, 352, 372

  Pepsi, 163

  Perot, Ross, 53, 347

  Peru, xxxiv, 73, 372, 375

  Philip Morris, 36, 415

  Philippines, 103

  in East Asia financial crisis, 183

  Pieth, Mark, 415

  Pinochet, Augusto, 273–74

  Poland, 69, 182, 264

  macroshock therapy in, 359–60

  market transition of, 243, 247, 270–71, 275, 276, 277, 359–60, 361, 436–37

  pollution, xlii–xliii, 29, 32, 34, 37, 80, 406

  Portugal, 355, 408

  poverty, 111, 120, 131, 306, 307

  in China, 176, 271–72

  globalization’s exacerbation of, 303, 336

  as IMF concern, 284, 304, 328

  IMF’s exacerbation of, 113, 115, 116, 132, 170

  increases in, 103–4, 121, 122, 157, 191, 226, 258, 271–72, 427

  “participatory” assessments of, 146, 322

  problems interrelated with, 312

  reduction of, xix, 176, 185, 271–72, 335

  in Russia, 226, 244–46, 271–72, 434

  trickle-down economics and, 173–75

  in U.S., xvii

  vicious cycles and, 177

  as World Bank concern, 120–21, 284, 304, 312

  power shift, 376–77

  Prague, 107, 155, 270

  predatory pricing, 68

  “price discovery,” 324

  Price of Inequality, The (Stiglitz), 366

  prices, 69

  aluminum cartel and, 266

  barter and, 243

  equal to marginal cost of production, 67

  marketing boards and, 170–71

  monopolies and, 163–64

  of oil, 201, 226, 237, 278–79, 288

  in Russia’s market transition, 233–34

  in Soviet economy, 230, 232

  two-tier, 272–73

  privacy, 383–84

  privacy rights, 4

  privatization, 149, 150–54, 170, 186, 254, 270, 280, 310, 351

  argument for, 150, 309

  in China, 272, 274, 275

  effects of hasty implementation of, 151–53, 154, 168, 271, 275, 309

  IMF’s pursuit of, 150–52, 168

  as part of comprehensive program, 153–54

  regulation and, 151–52

  in Russia’s market transition, 154, 232, 234–35, 236, 244, 248–51, 255–56, 257

  in U.S., 267–69

  productivity, xliv, 16, 84–85, 164

  in East Asia, 59

  increased by trade, 9

  profits, 67, 390, 414, 416

  property rights, 154, 168, 169, 230, 254–55

  intellectual, 106, 333

  prostitution, 175

  protectionism, xxv, 84, 105, 111, 113–15, 117, 149, 157, 166, 263–69, 332

  aluminum cartel and, 263–66

  economic case against, 53–60

  future of, xxxix–xlii

  prices driven up by, 62

  rising popularity of, 4

  unemployment created by, 60

  uranium and, 267–69

  see also trade

  public services, 417

  purchasing power, 271

  Putin, Vladimir, 11, 259

  Qatar, 304

  quantitative easing, xxxii

  racial justice, 37

  railroads, 352

  Reagan, Ronald, xxii, xl, 13, 19, 85, 111, 160, 425

  Reagan administration, 208, 267

  Reagan era, 207

  real estate, 194–95, 287, 300, 301, 420

  realpolitik, 147, 205, 281

  recessions, 134, 215, 229, 307

  balanced budgets and, 199–200

  capital flight in, 194

  causes of, 150, 160–61, 172, 193

  in East Asia, 198, 200, 203, 205, 213, 219

  in Latin America, 180, 241, 337

  long-term effects of, 214–15

  of 1991, 160, 207

  Regional Comprehensive Economic Partnership, 375

  regional development banks, 372

  regulation, 55, 375, 381

  of financial sector, 176

  harmonization of, 28

  and loss of coal mining jobs, 21

  privatization and, 151–52

  race to bottom on, 27, 28–29

  of sharing economy, 384–85

  trade agreements’ effect on, 48

  see also deregulation

  regulations, compensation for, 415

  regulatory takings, 415

  Reich, Robert, 19–20

  renminbi, 13, 15

  rents, 417

  “rents,” resources and, 167

  “rent seeking,” 41, 111, 153–54, 234, 417

  Republican Party, 48, 63, 66, 86, 372, 416, 419, 426

  research, 383

  research and development (R&D), 419

  reserves, 126, 134

  East Asia financial crisis and, xxx
v, 188, 201, 298–99

  form and function of, 125, 161

  resource allocation, 220, 329

  resources, 167, 177, 178, 191, 235, 236, 240, 282

  stripping of, 235

  revolving doors, 296

  Ricardo, David, xvi, 8, 389, 408

  Riegle-Neal Interstate Banking and Branching Efficiency Act, 413

  “right to know,” 224, 317

  ringgit, exchange rates and, 215, 216

  riots, 101, 118, 132, 143, 172, 212, 213

  risk, 349, 350

  diversification of, 83

  risk management, 10–11, 326–27

  risk markets, 82

  imperfect, 349

  river blindness, 120, 121, 312

  roads, 352

  robber barons, 251

  robots, 13, 57

  Rogoff, Ken, 347

  Romania, 292–94, 323

  royalties, 40–41

  Rubin, Robert, 117, 196, 216, 221, 266

  ruble, 227, 237–39, 241, 260, 278, 287, 290

  rule of law, xix, 24, 37–38, 179, 230, 435

  corporations and, 80

  and foreign direct investment, 31–32

  after Trump, 378, 391

  Russia, xxx, 39, 77–78, 143, 183, 189, 191, 192, 201, 223, 224, 225–26, 287, 292, 300, 323, 373

  aluminum trade and, 263–66, 436

  barter in, 243

  challenges and opportunities of market transition in, 228–33

  corruption in, 225, 230, 239–40, 248–49, 252, 257, 259, 261, 266, 278, 289, 309

  currency devaluation in, 227, 237–39, 241, 242, 260, 278, 434

  democracy and, 225, 228, 258, 260, 281, 282–83

  differences in institutional functions in, 230

  former Communists in, 228, 258–59, 435–36

  in G-8, 112n

  gas exported by, 11

  global reserve system supported by, xxxv

  gross domestic product of, 104, 235, 236, 243–44

  inequality in, 244–46, 360, 434

  loans-for-share program in, 250–51, 256, 257, 261, 281, 283

  market transition of, 104, 225–26, 270, 274, 275, 276, 277, 359–61, 434, 437

  misguided market transition policies in, 246–56

  1998 crisis in, 237–39, 257, 278, 290

  oligarchy in, 226, 235, 237–38, 250–51, 255, 261, 278, 435

  optimistic vs. pessimistic views of, 226

  parliament of, 228, 258, 261

  poverty in, 226, 244–46, 271–72, 434

  privatization in, 154, 232, 234–35, 236, 244, 248–51, 255–56, 257

  recommendations for, 277–82

  “reform” story in, 233–42

  rescue package for, 239–40

  “shock therapy” economic reform approach taken in, 232, 234, 249, 253, 257–58, 273, 276, 359, 360

  social transformation in, 227–28, 251–53

  uranium deal between U.S. and, 267–69

  U.S. interests and, 262–69

  Western advisers and, 225–27, 228, 232, 236, 253, 256, 257–69, 277–78

  Russia, Imperial, 157

  Russian Revolution, 225, 227–28, 235, 254

  safety nets, 115, 151, 156, 161, 168, 172, 178, 232, 273, 327

  safety regulations, 381

  sales, 407

  Samsung, 188

  Samuelson, Paul, 8, 409

  Saudi Arabia, xxxvi

  savings:

  domestic, 14, 61, 62, 91

  long-term, 35

  savings and loan debacle, 160, 196, 207

  savings rates:

  comparison of, 162

  in East Asia, 162, 168, 174, 185, 192

  Scandinavia, xvii, xxviii, xliv, 398

  scarcity, IMF reforms and, 133

  science, 51–52

  Seattle, Wash., xxxii, 101, 107, 155, 156, 332

  selectivity, 145–46, 330

  self-employment, 193

  self-finance, 224

  Seoul, 141

  September 11 terrorist attacks, xxxii, 316, 324, 370

  sequencing, 168–73, 181, 232

  consequences in ignoring of, 170

  definition of, 116, 170

  social transformation and, 171–72

  see also gradualism; “shock therapy”

  services:

  nontraded, 10

  trade in, 94, 157

  service sector economy, 83, 85, 88–89, 385–87

  Severino, Jean Michel, 205

  Seychelles, 364

  sharecropping, 175–76

  share ownership, 220, 231

  Sharif, Nawaz, 166

  sharing economy, 384–85

  Shleifer, Andrei, 254–55

  “shock therapy,” 271, 357–60

  in Russia’s market transition, 232, 234, 249, 253, 257–58, 273, 276, 359

  short-term capital, 33–35, 426

  short-termerism, 414

  Sierra Leone, 133

  Silicon Valley, 13, 19

  Sinclair, Upton, 75

  Singapore, 38, 163, 168, 195, 213

  Slovakia, 243

  Slovenia, 243, 277

  small and medium-sized enterprises (SMEs), 87

  smallpox, 312

  Smith, Adam, xvi, 8, 16, 32, 47, 168–69, 306, 308, 349, 351, 389, 405, 429

  smoking, 37

  Smoot-Hawley Tariff Act (1930), 63

  social capital, 252–53, 263, 275

  social contract, 153n, 173, 297

  Social Democrats, 258

  socialism, 104, 254, 354

  social justice, 37, 95, 307, 393

  social protection, 78–79, 89–90, 390

  Social Security, 310, 346

  social security systems, 151

  social transformation, 171–72, 330, 441

  social welfare, 306

  soft drink manufacturers, 163

  solar industry, 57, 421

  Soros, George, 281

  South, U.S., 57

  South Africa, Republic of, 12, 77–78, 131, 135, 373, 406, 408

  South China Sea, 382

  Southeast Asia, 237

  South Korea, see Korea, Republic of (South Korea)

  sovereignty, 392

  loss of, xxxv, 24–25

  sovereign wealth funds, 35, 372

  Soviet Union, xviii, 75, 112, 230, 231, 235, 245, 306

  see also Russia; other former members of

  Special Drawing Rights (SDRs), 331

  specialization, 389

  spillovers, 12–13, 32

  Sputnik, 243

  Sri Lanka, 57

  stability, 104, 109, 113, 120, 131, 175, 186, 194, 196, 208, 217, 274, 280, 284, 300, 312, 381

  stagnant wages, xvii, xliv

  standard of living, 62, 79, 95, 102, 186, 233, 244, 245, 306, 336

  State Department, U.S., 159, 266

  steel, 17, 67–68, 397, 423

  Stern, Nicholas, 373

  stock buybacks, 35

  Stockholm Consensus, 351–52, 399

  Stolper, Wolfgang, 409

  Strauss-Kahn, Dominique, 366

  structural adjustment loans, 111, 115–16, 427–28

  definition of, 102

  structural reforms, 190, 206–11

  structural transformation of economy, 376

  students, 407

  subsidiarity, 28

  subsidies, 17, 22

  agriculture, xxx, xxxii, xlii, 20, 23–24, 73, 105, 341

  in China, 423

  cotton, xxx, xlii, 73, 370

  of exports, 418

  food and fuel, 172, 212, 305, 308

  kerosene, 172

  of movies, 82

  rules against, 67

  Suez Lyonnaise, 166

  Suharto, Mohammed, 166, 219, 302

  suicide, 56

  Summers, Lawrence, 184, 196, 205, 221, 261, 324

  superstar economy, 383

  Supreme Court, U.S., 42, 396

  Swahili, 136

  Sweden, x
xviii, 125, 273, 300, 306, 322, 398, 419

  Switzerland, 241, 242

  “swords to plowshares” agreement, 267

  Syria, xxx

  Taiwan, 150, 174, 176, 213, 228, 229, 306

  Talbot, Strobe, 257

  Tanzania, 136

  Target, 62

  targets, 140

  tariffs, xx, 27, 33, 111, 113, 149, 166, 369

  on autos, 61

  on China, xxxiv, 4, 25, 55

  on Mexico, 23–24, 55

  Trump’s threat of, 370–71

  by WTO, 63

  tax avoidance, 415–16

  taxes, xxii, xxv–xxvi, xxx, 13, 96, 109, 110, 124, 126, 165, 168, 175, 176, 198, 199, 216–17, 280, 324, 440

  on carbon, 17, 371–72

  corporate income, 413, 425

  and globalization, 38

  global reform of, 362–64

  lowering of, 396–97

  regressivity of, 19–20, 87–88

  restructuring of, 85

  tax evasion, 415–16

  tax inversions, 416

  tech bubble, 407

  technology, 21–23, 386, 408, 410, 419

  telecommunications, 57, 85

  telegraph line, first, 119

  “terms of trade,” 105

  terrorism, 393

  financing of, 316

  Texas, 268

  textiles, 8, 21, 89

  Thailand, 34, 116, 118, 175, 287, 289, 290, 291–92, 301, 322, 326, 430

  constitution of, 224

  in East Asia financial crisis, 183, 186, 188–89, 191, 193, 194, 200, 202, 204, 205, 206, 210, 213–14, 217, 219, 298, 299, 301, 430

  Thatcher, Margaret, xl, 19, 85, 111, 160, 267–68

  Third World, 103, 111

  Tibet, 382

  Tientsin, Treaty of (1858), 157

  Tobin Tax, 440

  tourism, 57, 407

  toxic waste, 37

  Toys “R” Us, 196

  Tract on Monetary Reform, A (Keynes), 337n

  trade, 103, 170, 218, 257–69, 305

  aluminum cartel and, 263–66, 436

  balancing the agenda of, 332–34

  beggar-thy-neighbor policies in, 14, 25, 113, 200–201, 299, 345, 422

  beggar-thyself policies in, 200–202, 299

  benefits of, 102

  distributive consequences of, 18–20

  dumping and, 263–66, 267

  increase in, xx

  inequities in, 102, 104–5, 106, 114, 156–58, 159, 263, 332, 386

  international agreements on, 76, 102, 106, 113, 156–57, 159, 304, 314, 332, 338, 370, 374–75, 408–9, 411–12

  job creation and, 8–9, 18

  liberalization of, 114, 149, 155–60, 161, 178–79, 186, 195–96, 329, 349–50, 417, 441

  measurement of, 396

  mismanagement of, xx–xxiv

  overselling of, 7–15

  polls on discontent with, 3–4

  productivity increased by, 9

  seen as zero sum, xlii, 55

  in services, 157

  Trump’s complaints about, xv, xvi, xx–xxi, xxxiii–xxxiv, xliv, 3, 4, 5, 21, 24, 25, 50, 53–54, 55, 60, 61, 62–63, 64, 65, 66, 354, 375

  uranium and, 267–69

 

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