imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

US to the 3rd World: ''Do as I say, not as I do''

by Joseph Stiglitz Tuesday, Nov. 04, 2003 at 5:48 PM

Emerging markets like Brazil, India, and Mexico should not strive for a mythical free-market economy (which never existed, nor follow the encomiums of US special interests -- for they preach free markets but rely on the government to advance their aims.

Do as the US says, not as it does

America preaches free markets, but at home it's a different story

Joseph Stiglitz, The Guardian (UK), October 29, 2003

Today, many emerging markets, from Indonesia to Mexico, are told that there is a certain code of conduct to which they must conform if they are to be successful. The message is clear: here is what advanced industrial countries do, and have done. To join the club, you must do the same. The reforms will be painful, vested interests will resist, but with enough political will, you will reap the benefits.

Each country draws up a list of what's to be done, and each government is held accountable in terms of its performance. Balancing the budget and controlling inflation are high on the list, but so are structural reforms. In the case of Mexico,opening up the electricity industry, which Mexico's constitution reserves to the government, has become the structural reform of the day demanded by the west. So analysts praise Mexico for its progress in controlling its budget and inflation, but criticise it for lack of progress in electricity reform.

As someone who was intimately involved in economic policy making in the US, I have always been struck by the divergence between the policies that America pushes on developing countries and those practised in the US itself. Nor is America alone: most other successful developing and developed countries pursue "heretical" policies.

For example, both political parties in the US now accept that when a country is in a recession, it is not only permissible, but desirable, to run deficits. Yet developing countries are told that central banks should focus exclusively on price stability. America's central bank, the Federal Reserve Board, has a mandate to balance growth, employment, and inflation - a mandate that brings it popular support.

While free marketers rail against industrial policy, in the US the government actively supports new technologies, and has done so for a long time. The first telegraph line was built by the US federal government in 1842; the internet was developed by the US military; and much of modern American technological progress is based on government-funded research in biotechnology or defence.

Similarly, while many countries are told to privatise social security, America's public social security system is efficient (with transactions costs a fraction of private annuities), and customers are responsive to it.

While the US social security system now faces a problem with under-funding, so does a large fraction of America's private pension programmes. And the public pension system has provided the elderly with a kind of security - against inflation and the stock market - that the private market has not.

Many aspects of US economic policy contribute significantly to the country's success, but are hardly mentioned in discussions of development strategies. For more than 100 years, America has had strong anti-trust laws, which broke up private monopolies in many areas, such as oil. In some emerging markets, telecom monopolies are stifling development of the internet, and hence economic growth. In others, monopolies in trade deprive countries of the advantages of international competition.

The US government also played an important role in developing the country's financial markets - by providing credit directly or through government-sponsored enterprises, and by partially guaranteeing a quarter or more of all loans. Fannie Mae, the government-created entity responsible for providing mortgages for middle-class Americans, helped lower mortgage costs and played a significant role in making America one of the countries with the largest proportion of private home ownership.

The Small Business Administration provided the capital to help small businesses - some of which, like Federal Express, have grown into major businesses. Today, US federal government student loans are central to ensuring that all Americans have access to a college education, just as in earlier years, government finance helped bring electricity to all Americans.

Occasionally, America has experimented with free-market ideology and deregulation - sometimes with disastrous effects. President Reagan's deregulation of the savings and loan associations led to bank failures that contributed to the recession of 1991.

Those in Mexico, Brazil, India and other emerging markets should be told a different message: do not strive for a mythical free-market economy, which has never existed. Do not follow the encomiums of US special interests because, although they preach free markets, back home they rely on the government to advance their aims.

Instead, developing economies should look carefully, not at what the US says, but at what it did in the years when it emerged as an industrial power, and what it does today. There is a remarkable similarity between those policies and the activist measures pursued by the highly successful east Asian economies over the past two decades.

Joseph Stiglitz, professor of economics at Columbia University, is a Nobel prize winner and author of Globalisation and Its Discontents

Report this post as:

Listed below are the 10 latest comments of 13 posted about this article.
These comments are anonymously submitted by the website visitors.
Hee, hee. They're giving out Nobel prizes to village idiots these days Barney Tuesday, Nov. 04, 2003 at 7:15 PM
Russian Robber-Baron love deregulation! death by pollution, crime Tuesday, Nov. 04, 2003 at 7:26 PM
dont reinvent the wheel scottie Wednesday, Nov. 05, 2003 at 5:41 PM
They need to reinvent their corrupt political systems Barney Wednesday, Nov. 05, 2003 at 6:46 PM
Meanwhile at the ranch... Earth to Bush admirer Tuesday, Nov. 25, 2003 at 10:40 PM
Blah blah blah blah blah Max Wednesday, Nov. 26, 2003 at 5:29 AM
Typical republican arrogant shit Earth to Young Republican Wednesday, Nov. 26, 2003 at 11:19 PM
Typical leftist whining Barney Thursday, Nov. 27, 2003 at 12:34 AM
Could you elaborate Curious Thursday, Nov. 27, 2003 at 6:19 PM
Hae you tried the swordfish?? Barney Thursday, Nov. 27, 2003 at 11:59 PM
You are trying to get off track Curious Saturday, Nov. 29, 2003 at 4:16 PM

Local News


lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

Amy Goodman interview on cell phone safety A08 10:29PM

Mesa, Arizona police officer kills unarmed white man A08 9:50PM

Israeli leaders should be prosecuted for war crimes A08 9:48PM

Paraphysique de l'autorité A08 12:11AM

Two Podcasts on fbi corruption A06 10:13PM

Fbi assassins assault & try to kill DAVID ATKINS A06 7:29PM

EPA Head Scott Pruitt: Of Cages And Sirens A06 2:15PM

The Shortwave Report 04/06/18 Listen Globally! A05 4:25PM

Nicaraguas Conflic with native Peoples on the Caribbean Coast Near Bluefields in Decade80 A05 12:14PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy