Stiglitz: Globalization, the IMF, and the Betrayal of the Social Contract

Joseph E. Stiglitz, a Nobel Prize winner and witness to global transformations, presents a critical analysis of globalization, which, instead of the promised prosperity, often leads to deepening inequality and social tragedy. The article exposes the role of the International Monetary Fund and its dogmatic policies, such as the Washington Consensus and shock therapy, which have devastated the economies of developing countries. Drawing on case studies from Russia, Asia, and Poland, Stiglitz argues that more effective, more gradual development strategies exist. He emphasizes the need to restore a moral compass to the global order, prioritizing the social contract over purely financial interests and advocating for reforms, including international debt restructuring mechanisms.