10 - Globalization and the Politics of International Finance: The Stiglitz Verdict

Summary

Introduction

Joseph Stiglitz's book, Globalization and Its Discontents (2002) defies easy categorization. It is, in part, an academic monograph meant to be read by professional economists and the serious graduate student; but it is also, in part, a diatribe against the injustices of global finance and politics. It is written at times from the ivory tower, contemplating the vast panorama of international economic relations with a researcher's trained but distant vision; but it also reads in places like a rabble-rousing call from an activist who has no time for the niceties of models and regressions. With a title that rhymes with Sigmund Freud's classic monograph, this is also a book where an academic, who has done pioneering work in his field, cuts loose from the binds of his discipline and assesses the world with passion, concern, and also disappointment.

It is the disappointment that makes this such a compelling book. Stiglitz has seen it all. In 1993 he moved out of the groves of academe to join President Clinton's Council of Economic Advisors. From there he went to the World Bank as Senior Vice President and Chief Economist. Popular globally for championing the cause of the disadvantaged and dispossessed and for not holding back on criticizing the US Department of Treasury and the IMF, he became unpopular in the bastions of power in Washington for these very reasons.