Joseph Stiglitz

Evaluating Economic Change

Abstract:
In recent years there have been enormous changes in our technology, our economy, and our society. But has there been progress? From most economists the first reaction to this question is: Of course there must have been progress! After all, the growth of new technologies expands opportunity sets, what we can do, the amount of output per unit input. We can choose either to have more output, more goods and services, or to work less. However we make the choice, surely we are better off. But what, then, about the sweeping changes we associate with the phenomenon of globalization? As a result of globalization, the countries of the world are more closely integrated. Goods and services move more freely from one country to another. The countries that have been most successful at both increasing incomes and reducing poverty ? the countries of East Asia ? have grown largely because of globalization. But in the countries that have been less successful, globalization is often viewed with suspicion.

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