Globalization: A Matrix for Institutional Reproduction
Globalization is not a one-dimensional phenomenon—it is an arena where communities fight for the ability to reproduce their own institutions and generate well-being. Although Joseph Stiglitz views it as a potential force for good, its current form remains stifled by a narrow circle of international organizations. This article analyzes how to transition from administering fear to global governance based on ethics. Readers will learn why previous models failed and what specific reforms can transform globalization into a tool for equitable development that protects the poorest from market fundamentalism.
The Washington Consensus: The Failures of Market Fundamentalism
The Washington Consensus, which dominated for decades, rested on three pillars: fiscal discipline, privatization, and liberalization. This market fundamentalism assumed that markets are self-regulating, leading to the paradox of global governance without a global government. Decisions with universal consequences were made without accountability to citizens. To protect the system from distortion, the primacy of three principles must be restored: transparency, employment stability, and protection against "hot money." The logic of sequencing is crucial here: one must first ensure law enforcement (p), and only then liberalize capital (q) to achieve stability (r). Reversing this order is a logical fallacy that has stood at the threshold of many crises.
Global Governance: The Paradox of Power Without Government
Information economics debunks the dogma of market perfection, pointing to knowledge asymmetry as the source of capital allocation errors. The experiences of Russia and East Asia in the 1990s serve as a warning against "shock therapy" and ignoring local contexts. Russia became a laboratory for the atrophy of social capital, while countries like Poland and China succeeded through gradual reforms. Effective privatization requires a transparent legal framework and real competition, not just a transfer of assets. Furthermore, civilizational maps must be considered: from Asian holism to African post-colonial conditions. Universal prescriptions imposed by the IMF often destroyed the social fabric instead of strengthening it.
The Sequence of Reforms: Chronology Determines the Sustainability of Change
Reform of the International Monetary Fund must begin with radical transparency and a return to its mandate of macroeconomic stabilization. A key proposal is the introduction of a sovereign bankruptcy mechanism (the so-called Super Chapter 11), which would allow for orderly debt restructuring without destroying the economy. Despite its many flaws, globalization has brought about a transfer of knowledge and a reduction in poverty in many regions of the world. However, we must recognize the ontological fact of human interdependence—in an era of global flows, no one is an isolated island. Regulating capital flows and changing the voting system in international institutions are technical means to an end: responsibility for the common good.
Globalization with a Human Face: The Mission for a Just Order
Globalization, in all its complexity, shows us that the future depends on our ability to coordinate actions on a global scale. It is the ultimate maturity test for our species: can we move beyond particular interests to create a system that protects everyone? Stiglitz reminds us that dissatisfaction with the current model has become a learning mechanism for institutions. Can we impose reason on the chaos of markets so that globalization becomes a force for good? Or will it remain merely a mirror reflecting our collective inability to cooperate? The answer to this question will define the shape of civilization in the coming decades.
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