Webdiary - Founded and Inspired by Margo Kingston

From the end of February 2007, Webdiary will no longer be publishing articles sourced from Project Syndicate, including those from Joseph E Stiglitz. Subsequent articles in Professor Stiglitz's I Dissent: Unconventional Economic Wisdom series can be accessed via the Project Syndicate site here.

What is at stake is not protecting domestic producers, but protecting our planet. The changing climate on climate change provides political leaders in Europe and other potential members of this “coalition of the willing” an unprecedented opportunity to move beyond mere rhetoric. The time to act is now.

"For the last few years, some bearish economists have warned about America’s real estate boom, its consumption binge, global imbalances, and even unreasonably low risk premiums; but somehow America, and the world, has muddled through. Some conclude that this proves that, even with poor political leadership, we can muddle through for still another year. Perhaps so. But perhaps not: muddling through has in some respects worsened the underlying problems, making the inevitable adjustments all the more painful. Indeed, that may be the main lesson we learn in 2007.": Joseph Stiglitz

"For more than three decades, Phelps has shown that there is an alternative approach. He has tried to understand what we can do to lower unemployment and increase the well-being of those at the bottom. But he has also striven to understand what makes capitalist economies dynamic, what lies behind the entrepreneurial spirit, and what we can do to promote it further. Phelps’ economics remains one of action, not resignation." Joseph Stiglitz

"The British government recently issued the most comprehensive study to date of the economic costs and risks of global warming, and of measures that might reduce greenhouse gas emissions, in the hope of averting some of the direst consequences. Written under the leadership of Sir Nicholas Stern of the London School of Economics, who succeeded me as Chief Economist of the World Bank, the report makes clear that the question is no longer whether we can afford to do anything about global warming, but whether we can afford not to." Joseph Stiglitz

"Americans like to think that if poor countries simply open up their markets, greater prosperity will follow. Unfortunately, where agriculture is concerned, this is mere rhetoric. The United States pays only lip service to free market principles, favoring Washington lobbyists and campaign contributors who demand just the opposite. Indeed, it is America’s own agricultural subsidies that helped kill, at least for now, the so-called Doha Development Round of trade negotiations that were supposed to give poor countries new opportunities to enhance their growth." Joseph Stiglitz

"At its recent annual meeting, World Bank officials spoke extensively about corruption. It is an understandable concern: money that the Bank lends to developing countries that ends up in secret bank accounts or finances some contractors’ luxurious lifestyle leaves a country more indebted, not more prosperous." Joseph Stiglitz

"Globalization can be changed; indeed, it is clear that it will be changed. The question is whether change will be forced upon us by a crisis or result from careful, democratic deliberation and debate. Crisis-driven change risks producing a backlash against globalization, or a haphazard reshaping of it, thus merely setting the stage for more problems later on. By contrast, taking control of the process holds out the possibility of remaking globalization, so that it at last lives up to its potential and its promise: higher living standards for everyone in the world. " Joseph Stiglitz

" The failure hardly comes as a surprise: the United States and the European Union had long ago reneged on the promises they made in 2001 at Doha. Seldom have so many had to give up so much to protect the interests of so few." Joseph Stiglitz

"As the current "development round" of trade talks moves into its final stages, it is becoming increasingly clear that the goal of promoting development will not be served, and that the multilateral trade system will be undermined. Nowhere is this clearer than in a provision that is supposed to give the least developed countries almost duty-free access to developed countries’ markets. The coup de grace was delivered by the world’s richest country, the United States, which once again decided to demonstrate its hypocrisy. " Joseph Stiglitz and Hamid Rashid

"If the Bolivians do not get fair value for their country’s natural wealth, their prospects are bleak. Even if they do, they will need assistance, not only to extract their resources, but also to improve the health and education of all Bolivians – to ensure long-term economic growth and social welfare." Joseph Stiglitz

"The IMF’s meeting this spring was lauded as a breakthrough, with officials given a new mandate for “surveillance” of the trade imbalances that contribute significantly to global instability. The new mission is crucially important, both for the health of the global economy and the IMF’s own legitimacy. But is the Fund up to the job?" Joseph E Stiglitz

"China is about to adopt its 11th five-year plan, setting the stage for the continuation of probably the most remarkable economic transformation in history, while improving the well-being of almost a quarter of the world’s population. Never before has the world seen such sustained growth; never before has there been so much poverty reduction." Joseph E Stiglitz

"One of the more surreal sessions at this year's World Economic Forum in Davos had oil industry experts explaining how the melting of the polar ice cap - which is occurring faster than anyone anticipated - represents not only a problem, but also an opportunity: vast amounts of oil may now be accessible." Joseph E Stiglitz

"Concerned that the Bush administration might be misleading everyone about the Iraq war’s costs, just as it had about Iraq’s weapons of mass destruction and connection with Al Qaida, I teamed up with Linda Bilmes, a budget expert at Harvard, to examine the issue. Even we, as opponents of the war, were staggered by what we found, with conservative to moderate estimates ranging from slightly less than a trillion dollars to more than $2 trillion." Joseph E Stiglitz

"The almighty American consumer had another banner year in 2005, helping sustain global economic growth, albeit at a slower pace than in 2004. As in recent years, he consumed at or above his income level, and the United States as a whole spent well beyond its means, borrowing from the rest of the world at a feverish pace in 2005 – more than $2 billion a day." Joseph E Stiglitz

"What has happened since the beginning of the Development Round at Doha in November 2001 has been a huge disappointment for me. As chief economist of the World Bank, I reviewed the Uruguay Round of 1994 and concluded that both its agenda and outcomes discriminated against developing countries. In March 1999, I went to the headquarters of the World Trade Organization in Geneva to call for a development round to redress these imbalances. For a moment, I thought my call had been heeded." Joseph E Stigliz

"... the real problem for Greenspan's legacy concerns what happened to the American economy in the last five years, for which he bears heavy responsibility. Greenspan supported the tax cuts of 2001 with the most specious of arguments - that unless something was done about America's soaring fiscal surpluses, the national debt would be totally paid off within, say, ten to fifteen years. According to Greenspan, immediate action needed to be taken to avert this looming disaster, which would impede the Fed's ability to conduct monetary policy!" Joseph Stiglitz