I am not so sure if Stiglitz had only Asia in mind but I doubt it. “(“)Quite often, countries with large amounts of natural resources suffer from exchange rate appreciation and the result is when they sell the natural resource, the value of currency goes up – they produce natural resources but no jobs. You can see this all over the world where you have rich countries and poor people. That’s why it’s so important to manage the natural resources from a macro-economic point of view,” he said.”
For those who don’t know, Stiglitz is a former chief economist at the World Bank. So maybe his contrarian views on globalization may stem from actual inside knowledge from his tenure at this Bretton Wood’s inspired institution.
Financing investments in natural resources and energy remains a very political end game. As Stiglitz wrote in a piece for Vanity Fair last July 2009, “America sent its Treasury secretaries (from both parties) around the planet to spread the word. In the eyes of many throughout the developing world, the revolving door, which allows American financial leaders to move seamlessly from Wall Street to Washington and back to Wall Street, gave them even more credibility; these men seemed to combine the power of money and the power of politics. ” Of course, Stiglitz is raging mad at this cosy relationship between the generals of global finance and the political brass which is likely going to cost America’s leadership position in the free market world and global influence.
But that is just the way the business of influence works. Don’t blame global finance, just look at the money trail behind the political party contributions. It all starts from there and it really is not a complicated path.