Nobel laureate economist
Joseph Stiglitz in Bangkok
On the post-recovery global economy
By Jon Fernquest 
Joseph Stiglitz is
the winner of the Nobel Prize
in economics
and one of the most important contributors to the discipline
of
economics.Stiglitz is also a public intellectual and one of the leading critics of the current global economic system.
Last week he made an address at a public lecture sponsored by the Bangkok Offices of UNESCAP. Probably the most important point that he made was:
Small
countries cannot just
wait for the world to recover.
Here are some important facts:
1.
All the countries of the world have contributed to the global economic
recovery with
fiscal stimulus programmes.
2. A comparison of fiscal stimulus programmes around the world can be found at the Brookings Institution (G-20 countries) and Dani Rodrick's blog (all countries) (See Brookings article and data from Rodrik article #2 and data from Rodrik article #2).
3. China's fiscal stimulus programmes have been the largest and most talked about (Read article today).
4. The fiscal stimulus programmes of smaller countries such as Thailand are important contributors to the economic recovery as well.
2. A comparison of fiscal stimulus programmes around the world can be found at the Brookings Institution (G-20 countries) and Dani Rodrick's blog (all countries) (See Brookings article and data from Rodrik article #2 and data from Rodrik article #2).
3. China's fiscal stimulus programmes have been the largest and most talked about (Read article today).
4. The fiscal stimulus programmes of smaller countries such as Thailand are important contributors to the economic recovery as well.
Today's article follows the vocabulary:
Joseph
Stiglitz - an
American economist and a professor at Columbia University. He is a
recipient of the John Bates Clark Medal (1979) and the Nobel Memorial
Prize in Economic Sciences (2001). He is also the former Senior Vice
President and Chief Economist of the World Bank (See Wikipedia)
Nobel laureate - a person who has won the Nobel prize
Nobel Prize in economics - award for outstanding contributions in the field of economics and is generally considered one of the most prestigious awards in that field (See Wikipedia)
contributors - people who add something of value (such as knowledge to a field of study)
a discipline, a field of study- a subject of study and research at a university (the disciplines of Chemistry, economics, electrical engineering, etc)
an intellectual - someone who spends a lot of time studying and thinking about complicated ideas (See Wikipedia)
a public intellectual - an intellectual with a large public audience, addressing issues of general concern (Read biographies and explanation)
UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific) - located in Bangkok, Thailand, is the regional arm of the United Nations Secretariat for the Asian and Pacific region. It was established in 1947 (then as the UN Economic Commission for Asia and the Far East - ECAFE) to encourage economic cooperation among its member states (See Wikipedia)
fiscal stimulus - temporary increases in government spending and tax cuts to subsitute for lost consumer spending and get the economy moving again
Nobel laureate - a person who has won the Nobel prize
Nobel Prize in economics - award for outstanding contributions in the field of economics and is generally considered one of the most prestigious awards in that field (See Wikipedia)
contributors - people who add something of value (such as knowledge to a field of study)
a discipline, a field of study- a subject of study and research at a university (the disciplines of Chemistry, economics, electrical engineering, etc)
an intellectual - someone who spends a lot of time studying and thinking about complicated ideas (See Wikipedia)
a public intellectual - an intellectual with a large public audience, addressing issues of general concern (Read biographies and explanation)
UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific) - located in Bangkok, Thailand, is the regional arm of the United Nations Secretariat for the Asian and Pacific region. It was established in 1947 (then as the UN Economic Commission for Asia and the Far East - ECAFE) to encourage economic cooperation among its member states (See Wikipedia)
fiscal stimulus - temporary increases in government spending and tax cuts to subsitute for lost consumer spending and get the economy moving again
FINANCIAL CRISIS
Economic guru: Asia needs to change its mindsetACHARA ASHAYAGACHAT
22/08/2009
The US-initiated financial crisis should change Asia's economic mindset from one of export-led and GDP-based growth to more self-reliance and sustainability, says 2001 Nobel laureate Joseph Stiglitz.
Asia must be less dependent on exports, particularly to the United States, as its markets are huge and they have great potential to propel growth, said Mr Stiglitz at a public lecture in Bangkok yesterday. United Nations Economic and Social Commission for Asia and the Pacific (Escap).
mindset - a typical
way of thinking, an attitude
change Asia's economic mindset - change the way that Asia thinks about economics
export-led growth model, export-oriented industrialization (EOI) - the strategy of generating economic growth by exporting to richer western countries that Japan, South Korea, China, and Southeast Asian countries used after World War II (See Wikipedia)
GDP-based growth - an national economic strategy with goal of highest GDP possible
self-reliance - can do it by yourself, don't need other people that much
go for Y - try to achieve Y s
go for self-reliance - try to achieve self-reliance
sustainability - can continue for a long period of time
propel growth - cause or drive growth, make growth happen
change Asia's economic mindset - change the way that Asia thinks about economics
export-led growth model, export-oriented industrialization (EOI) - the strategy of generating economic growth by exporting to richer western countries that Japan, South Korea, China, and Southeast Asian countries used after World War II (See Wikipedia)
GDP-based growth - an national economic strategy with goal of highest GDP possible
self-reliance - can do it by yourself, don't need other people that much
go for Y - try to achieve Y s
go for self-reliance - try to achieve self-reliance
sustainability - can continue for a long period of time
propel growth - cause or drive growth, make growth happen
The ability to absorb technology and the capability to pump demand and supply to accommodate its own national economies should bring about the reorientation of Asia's economic strategy, especially in light of lessons learned from flawed US policy approaches such as GDP-based measures, reliance on non-bank financial institution self-regulation, and improper consumption of natural resources, he said.
reorientation - start
going in a different direction
strategy - a plan to achieve goals over a period of time
X in light of lessons learned from Y - X because lessons were learned from Y
flawed - in error, has a problem
flawed US policy approaches - US policies that are in error, that have a lot of problems
a non-bank financial institution - a company that acts like a bank but is not regulated like a bank
self-regulation - when the companies being regulated make their own regulations
strategy - a plan to achieve goals over a period of time
X in light of lessons learned from Y - X because lessons were learned from Y
flawed - in error, has a problem
flawed US policy approaches - US policies that are in error, that have a lot of problems
a non-bank financial institution - a company that acts like a bank but is not regulated like a bank
self-regulation - when the companies being regulated make their own regulations
The Nobel laureate economist devoted much of his speech to criticism of the George W Bush and Barack Obama stimulus packages and the way the US government bailed out its financial institutions.
However, he did not pinpoint exactly what Asian countries should do to get themselves out of the US-led malaise that has affected the entire world economically.
devoted much of his speech to Y -
most of his speech was about Y
stimulus packages - government fiscal stimulus programmes
bail out - give money to prevent failure
bailed out its financial institutions - give money to banks to prevent the banks from failing
pinpoint exactly - locate exactly
stimulus packages - government fiscal stimulus programmes
bail out - give money to prevent failure
bailed out its financial institutions - give money to banks to prevent the banks from failing
pinpoint exactly - locate exactly
Mr Stiglitz said it is a time for reflection about how to create a more sustainable global economic architecture - a sort of global reserve fund deviating from the US dollar-based currency approach.
reflection about Y - careful
thought and analysis about Y
malaise - something wrong with a society or group that has no easy or quick solution
the US-led malaise - meaning: the global economic crisis that originated in the US
sustainable global economic architecture - a system for the global economy that will be succcessful over a long period of time
X deviates from Y - X does not match Y, X does not follow Y
US dollar-based currency approach - the current global exchange rate system that uses the US dollar in international trade and for foreign exchange reserves
global reserve fund - the proposed replacement for the current system of using the US dollar in foreign trade
and foreign exchange reserves
reserves, foreign exchange reserves - foreign currencies kept by the central bank of a country
design a new global financial infrastructure - a new system of exchange rates and payments for international trade
malaise - something wrong with a society or group that has no easy or quick solution
the US-led malaise - meaning: the global economic crisis that originated in the US
sustainable global economic architecture - a system for the global economy that will be succcessful over a long period of time
X deviates from Y - X does not match Y, X does not follow Y
US dollar-based currency approach - the current global exchange rate system that uses the US dollar in international trade and for foreign exchange reserves
global reserve fund - the proposed replacement for the current system of using the US dollar in foreign trade
and foreign exchange reserves
reserves, foreign exchange reserves - foreign currencies kept by the central bank of a country
design a new global financial infrastructure - a new system of exchange rates and payments for international trade
Any stimulus package launched by any government, he said, should not only be designed to suit its particular social and economic conditions but also take account of the global economic environment.
"The national economic multiplier effect is important for a global recovery as well. Small countries cannot just wait for the world to recover," he said.
multiplier effects -
when an initial effect grows bigger and bigger as it moves through the
system
national economic multiplier effect - when the government of one country spends money to get the economy moving and growing again
national economic multiplier effect - when the government of one country spends money to get the economy moving and growing again
"It is time that we design a new global financial infrastructure in a democratic manner.
"In a multi-polar world, the efforts need to be bottom-up, but certainly it's going to be a slow and gradual process," Mr Stiglitz said.
multi-polar world - a
world with multiple centers: US, Europe, Asia, Middle East....
efforts - work done to accomplish a goal
bottom-up - starting at the bottom of a structure or organisation and working its way up to the top
top-down - starting at the top of a structure or organisation and working its way down to the bottom
gradual process - activities to achieve goals that take place slowly
efforts - work done to accomplish a goal
bottom-up - starting at the bottom of a structure or organisation and working its way up to the top
top-down - starting at the top of a structure or organisation and working its way down to the bottom
gradual process - activities to achieve goals that take place slowly
(Source: FINANCIAL CRISIS: Economic guru: Asia needs to change its mindset, ACHARA ASHAYAGACHAT, 22/08/2009, link)
