'Unilateralism is the Obstacle to Globalization'

'Unilateralism is the Obstacle to Globalization'
A citizen journalist speak with Joseph Stiglitz, Nobel Laureate in Economics, 2001

Javier Espinoza (javier21a)

Published 2006-10-13

Globalization is not what brings injustice, poverty and isolation to the world but in its current form it has been the source of trouble. Ever since its backers announced globalization as the solution to all our problems it has failed to provide large-scale benefits. On the contrary, there are more people living under the poverty line in Africa now than 20 years ago. The rich get richer and the big countries and corporations manage globalization the way they please.

However, the world can be a better place, according to Joseph Stiglitz, Nobel laureate in Economics, 2001. In a world where a European cow gets a daily subsidy of $2, double the amount of a family's income in developing countries, there is much room for improvement.

Stiglitz, the chief economics advisor to Bill Clinton, argues in his first interview for a citizen reporter Web site that the current state of the world is not due to globalization, which in theory should be a system that allows the free flow of goods and people, investment without restriction of borders, the increase of productivity and life style. In Stiglitz' world, those who design policies based on their own interests have made of the planet a difficult place to live in.

The influential economist puts the United States, the most powerful nation in the world, as one of the main obstacles to an ideal system of cooperation to work.

"The United States unilateralism is one of the main obstacles for globalization to work," says Stiglitz, who is also a former Economic Chief of the World Bank and best-selling author of "The Happy 90s" and "Globalization and its Discontents."

In his new book, "Making Globalisation Work," launched in London recently, Stiglitz outlines the solutions he thinks can make the world a better place.

According to the author, rich nations must open their markets to the poorer countries; there must be a common objective to impose taxes to carbon emissions to force the United States to adhere to the international protocols and there should be a re-structuring of the way money is lent to developing nations to alleviate external debt.

Furthermore, Stiglitz says financial stability can be achieved thorugh a new system in which the global reserves are not in dollars. In his opinion, the U.S. international policies in economics matters "seek equity and justice at a local level but once we cross the border, the sole interest is to obtain the best deal in the benefit of America."

He says that if a new democratic administration were elected in the United States "I would like to serve as an external consultant to share with them what I have learnt but I would not like to form part of a public administration because it is too much work."

Stiglitz claims to have turned himself in the voice of the dissidents of the Washington consensus. He criticizes the economic measures carried out by the administration of George W. Bush.

In an article entitled "Bush is dead wrong" he once wrote: "Some 45 million Americans have no health insurance, up by 5.2 million from 2000. Families lucky enough to have health insurance face annual premiums that have nearly doubled, to $7,500. Families also face increasing job insecurity. This is the first time since the early 1930s that there has been a net loss of jobs over the span of a presidential administration.

"Is Bush really to blame for this? Wasn't the recession already beginning when he took office?

"The resounding answer is that Bush is to blame. Every president inherits a legacy."

And Stiglitz says the president of the United States has destroyed the legacy he inherited when he took office.

But not everything is grim and to the skeptics he brings a message of hope: "I can see why people would be sceptical about the idea of a better world but I do not share their vision. When I was growing up there were problems of discrimination against blacks and marginalization against women in society. Much has changed in that sense."

©2006 OhmyNews