Stiglitz Notes Stiglitz, Joseph. (2006). Making Globalization Work. London: Penguin. xiii.

At IMF, he was for social policies, pushing for the right balance between the private and public sectors and to advance policies promoting equality and full employment. All of these views are widely accepted now, and even the IMF has come around to my point of view that allowing unfettered flows of speculative capital is extremely risky Xiv My research on the economics of information showed that whenever information ia imperfect where some individuals know something that others do not (in other words, always) the reason that the invisible hand seems invisible is that it is not there 90s in US Xv Wall Streets perspective is often shortsighted Recognition of other forms of capitalism. Among the central choices facing all societies is the role of government. Economic success requires getting the balance right between the government and the market. What services should the government provide? Should there be public pension programs? Should government encourage particular sectors with incentives? What regulations, if any, should it adopt to protect workers, consumers, and the environment? This balance obviously changes over time, and will differ from country to country. But I shall argue that globalization, as it has been pushed, has often made it more difficult to obtain the requisite balance xvi. Attitudes towards globalization, and the failures and inequities associated with the way it has been managed, provide a Rorschach test for both countries and their people, revealing their fundamental beliefs and attitudes, their perspectives on the role of government and the market, the importance they attach to social justice, and the weight they put on noneconomic values xviii major events ( Major players have more defined, richer discourse)

4. COPY Globalization encompasses many things: the international flow of ideas and knowledge, the sharing of cultures, global civil society, and the global environmental movement. This book, however, is mostly concerned about economic globalization, which entails the closer economic integration of the countries of the world through the increased flow of goods and services, capital, and even labor. I believe that globalization has the potential to bring enormous benefits to in both the developing world and the developed world. But the evidence is overwhelming that it has failed to live up to this potential. This book will show that the problem is not with globalization itself but in the way globalization has been managed. Economics has been driving globalization, especially through the lowering of communication and transportation costs. But politics has shaped it. The rules of the game have been largely set by the advanced industrialized countries and particularly by special interests within those countries and, not surprisingly, they have shaped globalization to further their own interests 9. One of five concerns raised by discontent with globalization: Globalization advances material values over other values, such as a concern for the environment or for life itself. Globalization should not mean the Americanization of either economic policy or culture, but often it does and that has caused resentment. 10. Real wages in the United States , especially of those at the bottom, have stagnated for more than a quarter century , and incomes are as high as they are partly because Americans work for longer hours than their European counterparts. If globalization is being used to advance the American model of a market economy, many elsewhere are not sure they want it. Those in the developing world have an even stronger complaint that globalization has been used to advance a form of market economics that is more extreme, and more reflective of corporate interests, than can be found even in the United States. ( Ironic considering Hayashis critique of the reduction of Japanese working hours. Q: What happened to Japanese incomes in the same period?)

10. China managed globalization carefully : it was slow to open up its own markets for exports, and even today does not allow the entry of hot speculative money money that seeks high returns in the short run and rushes into a country in a wave of optimism only to rush out again at the first hint of trouble. Chinas government realized that while the rush in might bring a shortlived boom, the recessions and depressions that could be expected to follow would bring long-lasting damage, more than offsetting the short-term gain. China avoided the boom-and-bust that marked other countries in East Asia and Latin America 17. The Washington Consensus, for instance, had paid too little attention to issues of equity, employment, and competition, to pacing and sequencing of reforms, or to how privatizations were conducted. There is by now also a consensus that it focused too much on just an increase in GDP, not on other things that affect living standards, and focused too little on sustainability on whether growth could be sustained economically, socially, politically, or environmentally. ETC 18. IMF old boy governance leading to 90s crises for new markets following its rules vs. healthy, non-IMF like China 19. The conventional wisdom that the United States development was the result of unfettered capitalism is wrong ETC Government hand in US finances 21. In effect, economic globalization has outpaced political globalization ( US doesnt want to institute controls on either its domestic economy or the international financial institutions it runs and profits from, IMF or World Bank) 27. What government should do (i.e. socialist controls) 28. Why economists cant agree theory vs. reality. The results of any theory depend on its assumptions and if the assumptions depart too far from reality, policies based on that model are likely to go far awry 29. But active role of government as in East Asia is proven to work, and Washington Consensus style open markets dont

31. Success of East Asian style managed globalization 32 They chose investment and sovereign debt ( Ishihara advice to reduce personal debt in US) 36. Latin Americas Lost decade due to IMF policies. Non-sustainable growth. 45. Economist fixation on GDP: Easy to measure, easy to raise by paying environmental or social costs . Still, because GDP is relatively easy to measure, it has become a fixation of economists. The trouble with this is that what we measure is what we strive for. East Asia invested in society and employment. Elsewhere, growth has often been accompanied by increase poverty and sometimes even lower income for individuals in the middle. This is what has been happening in the United States: between 1999 and 2004, average disposable income went up by 11 percent in real terms, but median household income the income of the family at the center, the true middle-class family fell by some $1,500, adjusting for inflation, or around 3 percent If economic growth is not shared throughout society, then development has failed. ( Gutting of middle class for GDP while debt increased) 45. In East Asia, govt worked for social & political stability = employment & equity, no conspicuous consumption or wage disparities 46. Japanese senior management income limited to ten times worker (p. 47, three times in China) 71. infant industry or protected developing sectors Japan used in 70s 77. US & Japan decreasing manufacturing, increasing service 85. Half subsidized Japan agriculture. 101. Stiglitzs prediction of US stagnation, Occupy movement. With

stagnation, the threats of disorder from the disillusioned facing despair will increase

111. [314] Japan IP protection weaker than US law makers, but theyre still innovative. Intellectual property is part but only part of a countrys innovation system. IP has less to do with science more with academia and open architecture. 116. TRIPS and US IP monopoly 125. US medical tumeric patent lost to Asians. 129. Intellectual property laws provide the most dramatic illustration of the conflict between international trade agreements and basic values 132, Japan allows honest bribery 145. Boom & bust and recessions are part and parcel of capitalism 163. State regulation only solution to resource overuse. 170. US poor energy efficiency; Japan uses half as much. 171. US refused Kyoto 172. Japan and others polluting less than half of US with higher living standards. It is understandable that corporations do not want to spend money to reduce emissions, but it is unacceptable to let them sabotage global efforts to curb global warming. Rather, US firms would do well to learn from their Japanese competitors ETC Japanese cars popularity after oil shocks 180. US unwilling to commit to environment like Japan and others 246. Volatile economic system with 100 crises in 30 years, problem is US researve system. 247. Japan and Asian doubling of reserves for stability 251. Japans decades long fear of inflation 255. loss of USD value = less appeal for Japanese currency buyers EXAMPLE 258. Japan holding of USD = stability for world 259. Japan proposal of Asian Monetary Fund ( change of US global status quo) 264. Japanese insistence on surplus causes deficits in others 270. Dynamic economy = lose unproductive jobs, get productive ones = Fall in manufacturing in Japan, US, & EU

( Speed Tribes & Hayashi as attacks on Japanese values (hybridity & social cohesion) versus profits and US globalization