Joseph E. Stiglitz's Globalization And Its Discontents

2030 Words 9 Pages
In the book “Globalization and its Discontents” by Joseph E. Stiglitz, there are a lot of arguments about how the international community can do better when it comes to providing developing nations with aid. He discusses big organizations like the IMF and the World Bank, and how their efforts might even make the situation worse in some cases. The last chapters in the book, Stiglitz also discusses steps he sees are needed and that he argues should be applied by the international community.
Stiglitz argues that the IMF is wrong in what should be seen as a stable budget. He discusses that Ethiopia's main income was from taxes and from foreign aid. The IMF thought that for the budget to be balanced their expenses has to be less than the income
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This is in both the developed and the developing countries. Weak regulations in the developed world can lead to bad lending conditions which later puts developing countries in more debt. The international community has to be responsible when they go in and to some degree take over the finances of a certain country. Rules have to be set up that protects both the ones lending and the lenders. Both have to have some kind of security from the IMF or the World Bank, or whichever organization involved. People need trust in the process and if rules and regulations are weak it is hard to gain trust. One problem can be that the process of lending might become too complicated. There is already rules in place, and bureaucracy that comes with it. Of course this is complicated. Of course this might take time. The big question here is whether the risk of a bad deal offered from banks is worth a fast result. One can argue that, but the other side would also say that the lives of the people and the future of the country should be the main concern. Not the banks giving the aid. Because it is supposed to be just that. Aid, and not an opportunity to make profits as a

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