Book Review Essay Example | Topics and Well Written Essays - 1250 words - 1

Book Review - Essay Example Context 1 Globalization as a Problem At the first, the author comes out argumentative towards globalization. The author describes globalization as a problem only because it is something, which is being mismanaged by institutions (Stiglitz). The author arguments that international institutions such as the World Trade Organization, the International Monetary Fund or the World Bank have made poor organizations poorer. It is because the benefit has been transferred to the developed nations and because the institutions have prioritized profits over environmental health, the peoples’ lives in the poor countries have been compromised. The author puts responsibility of mismanagement to the international institutions, which look for the size, the volume of an economy and the power in a respective nation to provide benefits and opportunities. The author actually tries to put a light on the context that globalization is a problem if it gets mismanaged or uncontrolled (Stiglitz). Leading the argument the author comes with an objection that United States, which is largest in economic volume, gets the veto power from the IMF. Similarly, the country being the largest in all economies appoints the head of the World Bank, the organization which deals with the sanctioning up of loans to world’s poor countries. ... Stiglitz settles the argument by describing the implications of Washington Consensus, which is a consensus build up just to weaken the already deprived countries. The author asserts the policies of the Consensus, which declare lending machinery, which is often counterproductive instead of out-bringing for the poor nations. The policies actually favor the bureaucracy, the capitalist regime and the high rise authorities which only fall in the idea of profit maximization (Lopez 10-14). The author explains that mismanagement of globalization is caused by four major practices; high privatization, low investment, low taxes reforms on imports, and high volatility of the foreign capital. The argument of the author extends on the consequences of these practices which have been adopted by the poor nations as proposed by the power block (The World Controlling Economic Machinery). All the countries have got from these practices and policies is that they have gone to more economic instability. It is deprivation of the countries, which they have received from these undermining practices and policies (Stiglitz 5-7). Context 2 Managing Globalization as a Solution The book has provided extensive knowledge on how globalization can become the benefit of the deprived (Lopez). It has explained the propositions of the author that how globalization can be turned to the benefit of the underprivileged world. Balancing out the trend of globalization and its affects is the second context/segment of the book, presenting globalization as a solution if it gets managed in accordance to the improvement of people’s lives (Putterman). Stiglitz proposes certain solutions in regards of globalization and the trend of it. The author talks about the changes and reforms in the globalization