Stiglitz and his discontent

Globalization and its Discontents is Joseph Stiglitz's attempt to articulate to a wide audience his trenchant critique of the International Monetary Fund, its vision of globalization and, in effect, the organization of the world capitalist system. This paper argues that while Globalization and its Discontents is deeply flawed, it is ultimately an important book. Stiglitz's critique of IMF-style globalization is rooted in mainstream economic theory, but its conclusions are quite radical. Stiglitz argues that IMF policies favor the rich over the poor, stifle development, undermine democracy, and promote financial instability and crisis. His claims are by no means original. But no economist with comparably impeccable mainstream credentials has asserted so forcefully that globalization's critics are, on many crucial issues, correct. The power of Stiglitz's book lies primarily not in its originality or insight, but in its legitimization of popular criticisms of globalization.