Helen Manderbach is a long time activist and member of The Kutztown Area Democratic Club.

A Review

Globalization and Its Discontents, by Joseph Stiglitz — a Nobel prize laureate in economics , 2002 — recounts the disastrous effects the IMF (International Monetary Fund) and the World Bank policies have had on third world countries. Their stated mission was to stabilize governments and eradicate poverty. The absolute opposite happened over a twenty year period beginning in the early ‘80s, thanks to conservative market ideology.

Some third world government leaders rejected their ideas and survived the crises that threw other countries into chaos. The true purpose of the IMF and World Bank was co-opted by new conservative rules. That same thinking has dominated our economic policies, and only now are Americans waking up to the side effects of free trade agreements, privatization, liberal banking rules, etc. And the result has been an explosion of outrageous profit in the banking and investment community while poverty increases worldwide.

Stiglitz is unremitting in his criticism of all of the participants in this global scheme. Robert Rubin, Treasury Secretary under Clinton, is one of those cited for overriding advice from others and later failing to admit his errors in the face of obvious disaster.

If you wondered, as I did, why riots have accompanied WTO (World Trade Organization) meetings — (think Seattle 1999) — you must read everything you can on globalization. Students are the usual “anarchists”, as the press calls them, at these demonstrations. (The 9/11 hijackers were college students tuned in to these trade practices like the other WTO protesters . But they took their protest to an extreme level — and then some.)

I digress.

Since ‘02 Stiglitz has written more on the subject. You may have read about The Three Trillion Dollar War or The Roaring Nineties. His writings have not been well received by the banking community. And most unfortunate of all, he has been excluded from Obama’s group of economic advisers. According to Newsweek, Larry Summers can’t stand him. Stiglitz is not welcome for his views on banking regulation and other progressive positions. Robert Rubin, alas, is definitely on the team.

The economic condition of the world right now is the news of the day. Finally, attention is being paid to the banking and investment industry.We can hope that the crisis will bring about long-delayed reforms, and that Joseph Stiglitz will be recognized for his prescient views.