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Summary 
Stiglitz talks about globalization and the role of governance and financial institutions in giving 
direction and magnitude to its impact. He elaborates on the distinction between the impacts of 
globalization across nations based on the differentiated policy structure. The ones which mainly 
benefitted from globalization were the ones which were earlier technologically backward that 
benefitted due to exchange of knowledge across borders. It was found that till the time there was 
some extent of government control over the strategically important industries, in East Asia 
particularly, the opening up of trade and global markets generated benefits. These benefits got 
dampened or even reversed when the government regulations had to be removed due to US 
treasury and IMF pressure. The major focus is on the pitfalls of globalization, which due to the 
governance by financial community and dominated by north, have adversely affected the 
developing and poor nations. The unfair trade regime followed and dictatorship of IMF in 
devising monetary and fiscal policies led to unequal distribution of the gains of globalization. So, 
this calls for unbiased governance focused on global social justice.
What are the "discontents" and the "darker side" of globalization, according to Stiglitz? 
The liberalization of financial and capital markets brought huge inflow of capital in developing 
economies that gave rise to speculative booms in real-estate industry. Due to business cycles, 
investor sentiments reverted and investors drew back the capital which left economy in dearth of 
capital, pulling down economic activity in economies, and leading to the crisis. The blame for 
crisis rests on the pressure from IMF for unregulated financial and capital markets and not on 
governance of nations, since economies with all kinds of governance were adversely affected. 
Stiglitz appears to be offended by the undemocratic attitude of IMF and US treasury that tried to 
dictate its policies over the nations.

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