see also globalization; protectionism
trade balance, 14
trade chits, 91–92
trade deficits, 61–62, 90–91, 112, 289–90, 298, 425–26
bilateral, 374
U.S., xxxiv, 14, 15, 16–18, 24, 371, 374, 375, 377
trade ministers, 8, 46
trade ministries, 334
WTO and, 117, 119, 313
Trade Representatives, U.S., 158, 267
trade surpluses, 388
trade war, potential for, 62–66, 70
Transatlantic Trade and Investment Partnership (TTIP), xxxiv
transfer price system, 425
Trans-Pacific Partnership (TPP), xxxiv, 20, 26, 27–28, 42, 71, 375, 377, 382, 412, 418
transparency, 190, 196–97, 224, 322
consequences in lack of, 147–48
East Asia financial crisis and, 300, 323–24, 438
IMF’s lack of, 129–30, 147–48
importance of, 315–17
transportation costs, 118, 170, 390
Travelers, 127
Treasury bills:
Ethiopian, 128
U.S., xxxv, 125, 161, 165, 238, 388
Treasury Department, U.S., 114, 159, 205, 268, 300, 323, 408, 431
East Asia financial crisis role of, xxxv, 184, 185, 192–97, 199–200, 205, 221, 300, 301, 318, 354, 355, 361
IMF and, 142, 175, 195, 257
politics and, 257–58
Russia and, 232, 256, 258, 259, 260–61, 262, 278, 360
World Bank and, 175
trickle-down economics, xxix, 19, 173–75, 177, 297
trickle-down-plus economics, 175, 176, 177
Troika, 424
Trump, Donald J., xvii, xxiv, xxxiii, xxxv, xxxvi, xxxvii, xl, xlii, 11, 81, 341, 344, 347, 353, 365, 368, 394, 399, 410–11, 426
America First policy of, xxxiv, xxxvii, 54, 69, 71, 78, 375, 376, 377, 393
attacks on knowledge by, 43, 51, 52
China accused of exchange rate manipulation by, 14
complaints about trade by, 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
and cross-border investments, 31–32, 33
duties on steel threatened by, 423
election to presidency, xv
global warming denied by, 371
and immigration, 43, 45
multipolarization sped up by, 379
power exercised by, 72
and rule of law, 378, 391
tariffs threatened by, 370–71
TPP killed by, 27, 377
Turkey, xxxvi, 380
Twitter, 383
Uber, 384–85
Uganda, 136, 171, 182
uhuru, 136
ujama, 136
Ukraine, 11, 243, 323
unemployment, 32, 67, 90, 109, 110, 113, 121, 124, 125, 175, 207, 213, 214, 308, 320, 328, 337, 388, 406
causes of, 9, 114, 116, 168, 172, 178–79, 181
East Asia financial crisis and, 191
inflation and, 130–31, 176, 306
privatization and, 152
in Russia’s market transition, 237
social costs of, 152–53
in standard competitive model, 131
trade liberalization and, 155, 156
Wall Street’s disregard for, 263
unemployment insurance, 151, 153, 156, 178, 193, 306
“unfair fair trade laws,” 263, 267
Unilever, 163
unionization, 55
United Kingdom, see Great Britain
United Nations (UN), xx, 108, 110, 311, 363, 400
Charter of, 382
United Nations Conference on Trade and Development (UNCTAD), 108
United Nations Development Program, 108
United Nations Monetary and Financial (Bretton Woods) Conference (1944), 109, 113
United Nations Security Council, 112n
United States:
AIIB opposed by, 374, 376–77
China’s capital market liberalization demanded by, 159
Cold War mentality of, 121
economy of, 141, 144–45, 173, 202, 207, 213, 220, 229, 430–31
effect on small countries, 80–81
in G-7, 112n, 397
global reserve system opposed by, xxxv
greenhouse gases emitted by, 371–72
IMF advice ignored by, 141, 144–45
IMF veto power held by, xxv, 110, 195, 205, 314
immigration to, 43–45
increasing poverty in, xvii
inequality in, 360
market model in, 306
nineteenth-century growth of, 118
protectionist trade policies of, 105, 114, 157, 263–69, 332
Russia’s market transition as interest of, 262–69
savings rate in, 162
stagnant wages in, xvii
trade deficit of, xxxiv, 14, 15, 16–18, 24, 371, 374, 375, 377
unskilled-labor-intensive goods imported to, 18–19
uranium deal between Russia and, 267–69
World Bank as led by person from, 116
WTO as helpful to, 392–93
United States Enrichment Corporation (USEC), 267–69, 424
upfront costs, 383
uranium, 267–69, 424
Uruguay, 36
Uruguay Round, 21, 105n, 106, 156–57, 158, 332, 333, 369
USAID, 41
U.S. Steel, xxiii
U.S. trade representative (USTR), 8, 26, 41, 46–47, 384, 418–19
value-added tax, 346
values, 307, 334
Venezuela, 81, 372
Vietnam, 15, 57, 65, 303, 358
Vietnam War, xxiii, xxxiii
viruses, 80, 393
Voices of the Poor, The, 178
Volcker, Paul, 327
wages, xxvi, 8, 23, 44, 179, 213, 214, 407, 410
in China, 57
rents vs., 416–17
stagnant, xvii, xliv
Wall Street, 159, 164, 188, 196, 213, 216, 221, 242, 262–63, 290, 316
Walmart, 11–12, 47, 62, 65, 163, 406, 408
Washington, D.C., 155
Washington Consensus, xxviii, xxix, xliii, 59, 118, 163, 175, 186, 246, 248, 253, 302, 309, 342, 343, 346, 349, 351–52, 355, 398, 405
alternatives to, 181–82, 185, 270, 271, 275
capital account liberalization in, 398
description of, 114, 149–50
discredited by global financial crisis, 344, 369
effects of, 178, 180–82
future of, xxxvii–xxxix
market fundamentalist ideology of, 169
shock therapy vs. gradual approach at, 357–59
social transformation and, 171–72
Stockholm Consensus vs., 351–52
trickle-down economics and, 174–75
Wealth of Nations, The (Smith), 47
welfare state, 392
West Africa, 170
Western Europe, 128
“white man’s burden,” 121
Wilders, Geert, 3
Williamson, John, 398
Wilson, Charles E., 284
Wilson Center, 411
“window guidance,” 165
“winner take all” economy, 383
Wolfensohn, James D., 145–46, 329, 368–69
Wolfowitz, Paul, 368
women, 83
workers’ bargaining power, 19–20, 43, 95, 391
workers’ rights, 108
working conditions, 164
World Bank, xxviii, xxxvi, 101, 103, 105, 106, 108, 119, 135, 139, 140, 142, 150, 157, 158, 170, 172, 173, 184, 198, 205, 215, 216, 217, 248, 275, 293, 303, 316, 318, 342, 345, 348, 369, 439
author’s positions with, 120, 136, 308, 343
control of, 117
creation of, 371, 373
development assistance reform and, 328–32
disclosure standards at, 322
East Asia financial cr
isis and, 186, 188, 191, 310
East Asia Miracle report of, 185, 441
Ethiopia and, 124–25, 129, 356, 357
and global warming, 372
governance of, 365
headquarters of, 120
IMF and, 111–12, 114, 120–21, 146, 147
insurance provided by, 36
mission of, 109, 120–21, 284, 304, 312
motto of, 120
1980s purge in, 111
origin and proper name of, 109
private power deals encouraged by, 166
reforms of, 368–69
Russia’s market transition and, 236, 237, 239, 240, 241, 243, 244, 261, 278, 360
selectivity and, 145–46
structural issues as concern of, 112
Treasury Department and, 175
World Development Report of, 178, 441
World Health Organization (WHO), 108, 120, 312
World Intellectual Property Organization, 41
World Trade Organization (WTO), 25, 41, 66, 68, 82, 108, 119, 157–58, 303, 411–12, 422
balancing the trade agenda and, 332–34
beggar-thy-neighbor policies prevented by, 345
China admitted to, 9, 158, 159, 314
creation of, 369
establishment of, 105n, 113–14, 158
gains to U.S. from, 392–93
governance and, 314–16
ignored by Trump, 378
as limit on president’s power, 63, 65
protests at meetings of, 101
reform of, 369–71
trade interests served by, 305
transparency and, 316
Trump reined in by, 379
World War I, xv
World War II, xv, 88, 109, 110, 113, 114, 136, 225, 235, 337, 345
Yeltsin, Boris, 226, 228, 247, 250–51, 256, 257, 258, 259, 278, 281, 435
Zenawi, Meles, 122–24, 125, 356, 373
Zhu Rongji, 159–60, 184
Zika virus, 80
Further Praise for Globalization and Its Discontents
“Development and economics are not about statistics. Rather, they are about lives and jobs. Stiglitz never forgets that there are people at the end of these policies, and that the success of a policy should be defined not by how fast international banks are repaid, but by how much people have to eat, and by how much better it makes their lives.”
—Christian Science Monitor
“[An] urgently important new book.”
—Boston Globe
“Whatever your opinions, you will be engaged by Stiglitz’s sharp insights for a provocative reform agenda to reshape globalization. A must read for those concerned about the future, who believe that a world of decent work is possible and want to avert a collision course between the haves and the have nots.”
—Juan Somavia, director-general of the International Labour Organization
“[Stiglitz’s] rare mix of academic achievement and policy experience makes Globalization and Its Discontents worth reading. . . . His passion and directness are a breath of fresh air given the usual circumlocutions of economists.”
—BusinessWeek
“This smart, provocative study contributes significantly to the ongoing globalization debate and provides a model of analytical rigor concerning the process of assisting countries facing the challenges of economic development and transformation. . . . Impassioned, balanced and informed. . . . A must-read.”
—Publishers Weekly
“An insightful analysis of why globalization has been failing too many of the world’s poorest citizens and how to build and manage a more inclusive global economy. Timely and provocative.”
—Mark Malloch Brown, administrator, United Nations Development Program
“A great tour of the complexities of economic policymaking. Getting a top economist to subject the U.S. Treasury and the IMF to withering scrutiny . . . is good for the long-term health of the system.”
—Financial Times
“Stiglitz has presented, as effectively as it is possible to imagine anyone making it, his side of the argument, including the substantive case for the kind of economic development policies he favors as well as his more specific indictment of what the IMF has done and why. . . . [His] book will surely claim a large place on the public stage.”
—New York Review of Books
“This book is everyone’s guide to the misgovernment of globalization. Joe Stiglitz was there. He knows. And he explains it here in plain and compelling language.”
—James K. Galbraith, University of Texas at Austin
“A fresh, much-needed look at how institutions—primarily the International Monetary Fund—affect policy. . . . Stiglitz has done important work by opening a window few of us ever get to look through, into institutions that are, after all, public.”
—San Francisco Chronicle
“When Joe and I first met in Kenya in 1969, the creativity of his thinking and his deep commitment to development were immediately striking. During more than three decades of friendship I have always found his ideas interesting and incisive. He is one of the most important economists of modern times.”
—Nicholas Stern, chief economist and senior vice president, World Bank
“Stiglitz . . . is hardly the first person to accuse the IMF of operating undemocratically and exacerbating Third World poverty. But he is by far the most prominent, and his emergence as a critic marks an important shift in the intellectual landscape.”
—The Nation
“Gripping. . . . This landmark book . . . shows him to be a worthy successor to Keynes.”
—Independent (UK)
Also by Joseph E. Stiglitz
The Euro: How a Common Currency Threatens the Future of Europe
Rewriting the Rules of the American Economy: An Agenda for Growth and Shared Prosperity
The Great Divide: Unequal Societies and What We Can Do about Them
Creating a Learning Society: A New Approach to Growth, Development, and Social Progress (with Bruce C. Greenwald)
The Price of Inequality: How Today’s Divided Society Endangers Our Future
Freefall: America, Free Markets, and the Sinking of the World Economy
The Three Trillion Dollar War: The True Cost of the Iraq Conflict (with Linda J. Bilmes)
Making Globalization Work
Fair Trade for All: How Trade Can Promote Development (with Andrew Charlton)
The Roaring Nineties: A New History of the World’s Most Prosperous
Decade Globalization and Its Discontents
Copyright © 2018, 2002 by Joseph E. Stiglitz
All rights reserved
For information about permission to reproduce selections from this book, write to
Permissions, W. W. Norton & Company, Inc., 500 Fifth Avenue,
New York, NY 10110
For information about special discounts for bulk purchases, please contact
W. W. Norton Special Sales at [email protected] or 800-233-4830
Production manager: Anna Oler
Cover design by Milan Bozic
Cover photograph © CSA Plastock / Getty Images
ISBN 978-0-393-35516-1 (pbk.)
ISBN 978-0-393-35522-2 (e-book)
W. W. Norton & Company, Inc.
500 Fifth Avenue, New York, N.Y. 10110
www.wwnorton.com
W. W. Norton & Company Ltd.
15 Carlisle Street, London W1D 3BS
Globalization and Its Discontents Revisited Page 64