E-Paper
Focus on economic issues also, says Nobel winner
Speaking at a seminar in WSF, Nobel laureate Joseph Stiglitz said that economic issues can not be separated from the social issues.
Speaking at a seminar in WSF, Nobel laureate Joseph Stiglitz said that economic issues cannot be separated from the social issues.
He said, “We talk about economic growth, notions of poverty but not about what is the most important aspect of poverty which is sense of security.”
The former World Bank senior vice president and chief economist between February 1997 and February 2000, emphasised that security in the economic discussion has been left out too often.
“We can not separate economic issues from social issues,” he said.
He emphasised that though the Development Round promoted economic development, it should also promote measures to reduce poverty and economic security.
He added that one of the most important ways in which globalisation had increased economic insecurity in the developing world was the capital market globalisation which played the central role in the East Asian markets.
Criticising the IMF that had been asking the countries to put social security in private hands, the Noble laureate said, "The IMF is trying to force countries to adopt a policy that the US has rejected."
Rejecting that the capital market globalisation leads to stability, he said that this kind of economic model was not appropriate for developing countries since they did not have perfect market conditions.
He said, "Pushing for capital market proposition which increases instability and insecurity," is something that should not be done.
He also emphasised on the elements of enhancing economic opportunity to create jobs.
Terming it as a misconception that globalisation entails a retreat of state, the leading economist Prabhat Patnaik said, “As a matter of fact, a regime of globalisation entails as much state intervention, though the intervention is of a different nature.”
Describing it as another misconception that trade liberalisation is a good thing as against financial liberalisation, “Trade liberalisation is a good thing does not really hold,” adding, “Trade liberalisation in fact has de-industrialisation effect. It can bring about hardships as far as rural market is concerned.”