Joseph Stiglitz: Transformation is Difficult, and Takes a Long Time
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The BA hosted on Thursday, 28 July 2011, Joseph Stiglitz, Nobel Laureate in Economics and Professor of Economy, Columbia University, who gave a lecture entitled “Egypt in a Changing World”.
Stiglitz said that the transformations taking place in Egypt and other Arab countries within the “Arab Spring” are difficult and will take a long time. He stressed the role played by different parties and movements internationally to support the democratic transition in Arab countries, something that should be taken into consideration in Egypt, specially that the global economic scene is witnessing transformations due to the financial crisis.
He added that the solution to Egypt’s economic crisis lies in utilizing the unused resources, which requires better intervention from the government, especially regarding competitive advantages in commodities and resources. Stiglitz stressed that economic reform does not depend on the resolution of political problems.
In his book Globalization and its Discontent, Stiglitz tackled the status quo of the Egyptian economy amidst privatization policies, which were long supported by international institutions. He asserted that these destructive policies opened the door for corruption in both the governmental and private sectors, and increased inequality.
He emphasized that international support, in the form of money or ideas, will contribute to improving the economic situation. However, any proposed ideas should not be implemented before they are open to public debate to ensure that no external parties can impose their own agendas on the Egyptian scenario.