Globalization and Its Discontents

Why does globalization so often fail to improve living standards in developing countries? How could globalization be reformed to address these failures?

Stiglitz implies that many of the IMF’s mistakes in managing the Asian financial crisis in 1997 stemmed from shortsightedness. Do you agree with his assessment? Why or why not?

Analyze the relationship between developing countries and the IMF. How would you describe this relationship? What are the current strengths and weaknesses in this relationship? How could the IMF’s dealings with the developing world be improved?

To what extent should the IMF be involved in developing countries’ policy-making processes? Do you agree with Stiglitz’s arguments on this issue? If so, why, and if not, why not?

According to Stiglitz, what major factors contribute to the IMF’s consistently inaccurate forecasts and ineffective remedies? Are there any other major factors that you think should also be considered?

Are bailouts effective, in your view? What makes a bailout effective or ineffective? How could future bailouts achieve better results than prior ones?

What is social capital? How can it affect a country’s recovery from an economic crisis? Do you believe it should be factored into the IMF’s policies and decision-making? Why or why not?

Compare and contrast the original mandate of the IMF and its current stance. What has changed, and what has remained the same? Discuss at least two or three points, and analyze how this change (or lack thereof) has affected IMF policy.