Globalization and Its Discontents - Joseph Stiglitz

Joseph Stiglitz is a Nobel Laureate for Economics, 2001. And I thought, well, if he has an opinion on the problems of globalization, I might as well listen. The blurb says – From a leader of the anti-globalization movement, a statement like this [how globalization is not working] would not be remarkable. But coming from Joseph Stiglitz – former Chief Economist at the Worlkd Bank – it is startling and challenging. Exactly my opinion. And the Chief economist was also the Chairman of President Clinton’s Council of Economic Advisors. And if anyone would have a pro-globalization agenda, it would be him, considering his loyalties.
But the author doesn’t have any loyalties so to speak. And he raises his voice as an economist working towards the “greater good”. He analyzes the failings of globalization in varied situations; which leads to the revelation that it is not globalization in itself which has failed, but the manner in which “Globalization” has been imposed on countries not ready for it, through economic and political pressures, or downright blackmail if one were to not mince words.
At some point the book does tend to get repetitive and feels like it is basically a vent to bash IMF. But then whatever the motive of the author, the theories as proposed by the author do seem very credible. I would love to read a counter-view of the author’s allegations against the IMF.
The most disturbing chapter would be the “The IMF’s other agenda”, where the author suggests that IMF, more than acting to bring about a global financial stability, is working for the benefit of “international financial community”. And international financial community for all practical purposes translates to the global mammoth banks and other financial organizations. This does provide a lot sense behind the actions of IMF during the financial crises across South East Asia, Mexico, or Russia. The stand of IMF on trade deficits, fiscal deficits, interest rates, monetary policies, etc. which seem without any reason or logic, with the new agenda in mind, seem perfectly logical. And this is alarming. If we have an international organization working with a bias, it cannot be good for the world.
The book ends with the hope of promise, which is just as good, since the overall picture looks extremely grim and gloomy. A lot of things that matter so much to us seem so paltry and trivial in the larger scheme of things. And the world desperately needs who have the intent and the authority to set things right at the larger stage. It’s a question of yours and mine daily bread.

The Corporation that Changed the World - Nick Robins

Well… I didn’t really finish this book, because I carelessly forgot it in a flight I took from Mumbai to Bangalore… but I had read around 80% of the book so am in a position to comment about the book.

The reason I bought this book is to read up into the history of East India Company and their stance with respect to India. The history books in the school dwelt on the Maratha era and then passed on to the 1857 mutiny and there on to the Independence struggle with only a cursory mention about the impact of the East India Company on the nation from a economic and a political perspective. The only thing that was communicated was the atrocities committed on the Indians under the rule of East India Company and then the British Raj. What this book offers is a proper blend of the rise of East India Company, their functioning, their political and social impact not just in India but globally, and their eventual demise.

The good thing is that the author has managed to keep out any bias while presenting the historical facts. He maintains the business book feel while discussing the operations of East India Company as he compares their functioning, the organizational structure, the capital raising mechanisms and the rampant malpractices of the Company with the modern day organization.

The book gives sufficient detail for a person like me who wants to read on the subject more out of curiosity and for high level information. The writing is entertaining and is not boring in a text book way. It does not mince words about the cruelty that the Britishers subjected the Indians to and how methodically they ruined the entire country’s economy. This is the first business book that sparked my patriotic fury. And it did well to remind me of the struggle that India as a nation has been through to be free from the clutches of the foreign power. All the post-independence rhetoric, however clichéd, strikes true. We as Indians, have struggled for long. It’s about time we did not get carried away with the rampant westernization and rose to the riches of the pre-East-India era, where while there were inter-ruler wars, the per-capita income for the common man, was much higher. It’s high time we stopped being a poor nation.

The Dragon and The Elephant - David Smith

It’s interesting to note that the author chooses to represent China and India with a dragon and an elephant respectively. Size, power and perhaps fury captured well by the representative creatures. The book after all, is about the Chinese and Indian economies, their fall from their glorious history to very recent, but endemic, poverty, and their rising impact in the global economy in the more recent times.

Most books on economics, especially the ones about countries at a specific point in time tend to have a very short shelf life. They are applicable only for a few years after which they are published. This is especially true in the more dynamic times of today. But this particular book would make for a good read well into the future for its historical perspective. It provides a very good sneak-peek into the history of Chinese and Indian Economies and its journey for over 2000 years, the last 50 years or so being obviously more detailed.

The book then goes about discussing the impact of the two giants on the world economy. Overall, this section provides some useful details to the more generic knowledge an average Joe might have. Indeed, the author cites just the right number of examples and facts and figures too convey his point. He could easily have been carried away, but he doesn’t wander away from the theme of the book.

Lastly the book takes a predictive tone as the author states the ten ways in which China and India will impact the world. The author is careful not to over-state things, and is neither overly optimistic nor an alarmist in his visions of China, India and the world in 2050.

As a reader, you will appreciate that the author doesn’t patronize anything about either of the two countries and neither does he take a pro-western or a pro-globalization or pro-anything stance through the book. The book is very simply and completely about what the title suggests. The book serves a very good purpose in giving the people who are getting increasingly aware of the China and India, and maybe would also help to shatter some myths and stereotypes about the countries. After all, they are more than just about the dragons and elephants.

The Debt Threat - Noreena Hertz

Economics has always appealed to not only my intellectual side but my artistic senses as well. Well, I am not a PhD intellectual or anything, and neither is my artistic side heightened to the levels of Picasso. But I still enjoy any book or article or discourse which might have leanings on either the brainy side, or the aesthetic side. And economics for me spreads on both sides of the spectrum. Debt is one among the many financial and economic creations of mankind, which by its very nature is a piece of art really, and requires a mammoth intelligence to understand fully its ramifications.

And Noreena Hertz explores the threatening implications that international debt has in her book. Even if one is not aware of the global economics, you don’t even have to be a whiz to guess what the term “debt threat” might imply. It is very easy to dismiss the book as one more alarmist piece of literature… like global warming or something else.

But I would beg to differ. For one, the author is aware that she might be regarded as a pessimist and an alarmist when she lists the evilness of debts. Secondly the book is not just about how debt is killing a horde of people in poor countries. It is a complete piece of research on how the whole cycle of debt became vicious in nature, how are the countries suffering because of that, what are the outcomes, and the remedies as well. It is a complicated issue, one does realize. And as Bono (yeah, the U2 rockstar) succinctly puts it, the author does do a commendable job on cutting out the acronyms and making this whole issue a lot more understandable for the non-economists but at the same time are concerned about the well being of the world.

The examples in this book seem to be very repetitive. It is one country after another, suffering under the weight of debt their governments has taken. Some dictatorships have taken debts just to lead a comfortable life for themselves, some governments have taken debts to make weapons, some to destroy forests in an attempt to save the economy, and some simply to service older debts. And these examples take the book perilously close to that dreaded “alarmist” tag. But those examples are just to strengthen the point that the author is trying to make. And while perhaps slightly overused, they are not out of place and definitely not unneeded.

The high point of the book is that the author gives a practical way out. Now, as I said, I am no PhD to really say whether her ways are practical. But as a normal civilian, I find the thought process and the logic sound. And as the author herself says, what she has given in the book is a blueprint, a suggestion at a high-level which needs to be refined and chiseled at to come out with policies to thwart the debt threat.
Having said that, though the book speaks about a topic which everyone should know of which itself would go a long way to mobilize public opinion, the book might be a bit heavy for absolutely everyone to read. Maybe if there could be a series of articles in the newspaper… or some other marketing ploy which would increase the target audience manifold would help. While not everyone might have an appetite for books, a newspaper article might be up for grabs. And the more the people are aware of this issue, the better

Freakonomics - Steven D. Levitt and Stephen J. Dubner

How do I describe it? The title suggests it is “Economics for freaks”. Or maybe, “Economics by a Freak”. Either ways, its not economics at all. Or is it?

Well, the book is certainly no PhD literature or a text book in economics. The graphs which so plentifully adorn economics text books like heaps of jewelry encumbering an Indian bride, are conspicuous by their absence. And there are certainly no third derivatives of random variables, etc. etc.

What makes the book fun to read, even for… shall I say, laymen, or the humans who understand English but not Economics, is that the book goes about making inferences from data in a way Sherlock Holmes explains his “Elementary, dear Watson”. At the end of the inference you would go “A-ha”. Look at Freakonomics as a creativity and inquisitiveness stimulating book. At a gathering of philosophers, economists and other pundits there were several unifying themes presented for Levitt’s work. For me, the central message is, ask the right questions, gather the right data, and get the right answers. The first step, and therefore the most crucial one, is ask the right questions. More importantly, ASK. The book addresses questions which would make an economist cringe by their frivolity. Sample these:

• What do school teachers and Sumo wrestlers have in common?


• Where have all the criminals gone?


• What makes a perfect parent?

And so on. Freakonomics gives a “scientific” approach to resolve these, many would say, pointless, questions. And that is where the charm of the book lies.
At the end of book, I really feel inspired to dig for more of Levitt’s research. It would be so absolutely fantastic to have him as a teacher for a couple of terms. There is no way that someone can not enjoy this book. It might not change the way you think. It might not spark that curiosity or the methodology in you. If nothing else, the book is plain fun. You could read it for that!!!