Humanitarian Activist: Prized Economist Joseph Stiglitz Takes on the IMF

Every year universities across the United States award honorary degrees to reputable intellectuals who are making an impact on the world today. One field of study not normally thought of when crediting individuals for great achievement is the profession of economics. Many people find economics to be a dying profession, but this year has proven that the study of economics is alive and flourishing. There have been a number of critical advances in economic policies most notably the winner of the Nobel Peace prize’s work with the concept of micro-credit brought economics to the forefront in the public eye. The University of Southern California has a strong economics program and when bestowing an honorary degree would serve its purpose by selecting candidates whose accomplishments highlight an area of study in which the University has developed exceptional strength. Joseph Stiglitz is an economist who has won a number of awards for his influential work. He is a well-known figure on the topic of globalization and of the growth of individual economies around the world as well as a promoter of social justice who continues to provide new ideas about the world today. While he has his critics, Joseph E. Stiglitz is deserving of an honorary degree from the University of Southern California because Stiglitz takes the knowledge he learns from his individual research and applies it to improving the lives of those less fortunate.

The honorary degree to be proposed for Joseph E. Stiglitz is a Doctor of Science. He is a renowned economist who has distinguished himself as a major contributor to the field of microeconomics. There are a variety of criteriaMeaningful Work: Rethinking Professional Ethics for judging accomplishment. Mike Martin in his book categorizes professional achievement into three categories: craft, compensation, and moral. Each category defines an individual’s motives for seeking and realizing success. For Martin, craft motives are “desires to achieve expertise and desires to manifest technical skill, theoretical understanding, and creativity.” (Martin 22) Expertise comes from higher education and skills acquired from having a career. Joseph Stiglitz is a graduate of Amherst College, has a PHD from MIT, and has taught at a number of universities including Yale and Princeton and is currently University Professor at Columbia University. One of the classes he teaches there Development Policy: Multidisciplinary Roads to Reform “focuses on a selection of salient economic policy issues that confront the developing countries today …clarifying the controversies that have dominated the policy debate.” He has written numerous articles and books detailing his studies and research. His books include The Roaring Nineties and Globalization and Its Discontents.

When bestowing an honorary degree, USC seeks to “elevate the university in the eyes of the world by honoring individuals who are widely known and highly regarded for achievements in their respective fields of endeavor.” Joseph Stiglitz has done a great deal of work on market economies and the characteristics that are associated with them. He stresses the role of governments in fostering economic growth. Stiglitz has been quoted as saying, "Inequality [in incomes] is the most serious problem with globalization." He addresses globalization from all sides focusing in on the influence rich nations have on poorer countries. From schooling and research, Stiglitz developed advanced ideas. He began to see “an incongruity between many of the models that were being taught and the policy positions that our teachers (and we) believed in.” The questioning of these held beliefs allowed Stiglitz to deepen his research to levels never before touched upon. Joseph Stiglitz was the recipient of the John Bates Clark Medal in 1979, an award given out biannually by the American Economic Association. He is also won the Noble Prize in Economics in 2001. Stiglitz’s research was on the theory of information asymmetries. Stiglitz "clarified the opposite type of market adjustment, where poorly informed agents extract information from the better informed." Joseph Stiglitz has made numerous advances to the theories of microeconomics and has helped in the implementation of many governmental policies. These personal gains put the individual in a position where he or she is able to give more fully to the concerns of others.

The recognition from these awards gave Stiglitz credibility and elevated him in ranking among fellow economists. In Martin’s criteria for professional achievement, he finds “professionals typically receive above-average social rewards in the form of income and prestige because compensation motives are desires for social rewards including money, power, authority, recognition, and job stability.” (Martin 23) During the Clinton Administration, Stiglitz served as the chair of the President’s Council of Economic Advisors. After that he went on to serve as the Senior Vice President and Chief Economist at the World Bank. Stiglitz’s time at the World Bank was very memorable because of his remarks regarding the International Monetary Fund. According to one individual, “Particularly concerned with the plight of the developing nations, he [Stiglitz] became increasingly disillusioned as he saw the International Monetary Fund and other major institutions put the interests of Wall Street and the financial community ahead of the poorer nations.” Never one to back down in the face of adversity, Stiglitz held strong to his beliefs even if that meant losing his job. These are important lessons that the students of USC who are embarking on professional paths could take with them and apply to their new careers. Fame is also a factor when a university wants to select an honorand. According to James Freeman, president emeritus of the University of Iowa and Dartmouth College, in his book Liberal Education and the Public Interest, honorary degrees are a way for universities to advertise themselves and thereby generate certain publicity. (Freedman 125) Stiglitz is one of the top economists of modern times. The notoriety he possesses would bring a great deal of positive attention to USC.

Prominence within a field draws attention to the individual. With attention, the individual is able to bring awareness to notable causes. In choosing honorands Freedman emphasizes “intellectual distinction and public service.” (Freedman 118) Because of the fame and recognition, Joseph Stiglitz is able to use his academic achievements for the betterment of others. In recent years, Stiglitz helped found and is currently the Executive Director of the Initiative for Policy Dialogue at Columbia University, implementing first hand his knowledge of policy alternatives for developing countries. The IPD “provides overviews of policy alternatives to inform government officials, represents an international collaborative effort aimed at enhancing the quality of policy dialogue in developing countries over key economic issues, and contributes to the kind of policy analysis that is required if developing countries are to forge strategies that will promote… growth.” Stiglitz is also the chair of the University of Manchester’s Brooks World Poverty Institute, a “multidisciplinary centre of global excellence researching poverty, poverty reduction, inequality and growth.” Poverty issues are gaining increasing attention so it is vital that accomplished individuals like Stiglitz are working on solutions.

The last of Martin’s criteria, moral concerns, provides “opportunities to make ongoing contributions to the well-being of others and places special responsibilities on professionals.” (Martin 23) Stiglitz is making a difference in the world by doing what he loves. The topics Stiglitz analyses are ones that he has personally grown passionate about. He chooses to research these ideas because he wants to; not because a university is paying him to, an admirable quality that students can learn from if they every find themselves in a position of power. According to Freedman, “each honorand’s character and attainment is worthy of emulation and admiration.” (Freedman 132) Stiglitz is a strong individual who does not back down in the face on controversy as seen in his involvement in the World Bank and the IMF. He does not mold into the person others want him to be. “A life is more than outward events, and we understand persons only when we grasp the value commitments embedded in their motives, character and worldview,” says Martin. (Martin16) A number of successes have transpired for Stiglitz, but what makes him worthy of an honorary degree is his person--looking at how he views the world, his motives stimulate his actions and his character.

Despite all the positive things Stiglitz is doing, everyone has his or her share of critics. Joseph Stiglitz may be considered too controversial an individual to be receiving an honorary degree from a notable university. His departure from the World Bank was anything but amicable. Stiglitz is famous for his critical view of globalization. Globalization involves the mobility of goods and services brought about by advances in capital and technology combined with free-market ideology. Stiglitz has been quoted as saying, “Despite all the promises of globalization, the developing countries of the world don’t seem to be, well, developing.” The idea that globalization is not helping poorer countries is contrary to the beliefs of the International Monetary Fund. The IMF aims to help impoverished countries and believes globalization is making an impact. Many conservative individuals may be against hearing the views of Stiglitz. They have confidence in government created institutions like the IMF and may view Stiglitz’s comments as merely a liberal tirade. Some of Stiglitz’s critics argue that the staffs of the World Bank and IMF are committed to bringing growth to impoverished, developing countries. One in particular, Kenneth Rogoff asserts “I, too, came to my position in Washington from the cloisters of a tenured position at a top-ranking American because I care. Unlike you, I am humbled by the World Bank and IMF staff I meet each day.” Rogoff believes that by discounting the IMF as a whole, Stiglitz is disparaging the men and women who do not have misplaced motives.

Stiglitz’s comments regarding the IMF were not a personal attack on the employees who work there. Stiglitz was speaking out against misguided macroeconomic policies. His ideas may be viewed as radical or controversial, but ideas like these are what drive thought and force people to think beyond their personal bubble. The individual chosen to receive the honorary degree delivers the commencement speech at the graduation ceremony. A college commencement is a time of reflection. As an honorand of USC, Stiglitz would share his insights with the students on what it is like working with so many different political personas and the rewards to using the knowledge on learns in the classroom to help others. The University of Southern California in its mission statement asserts that the university “strives constantly for excellence in teaching knowledge and skills to our students, while at the same time helping them to acquire wisdom and insight, love of truth and beauty, moral discernment, understanding of self, and respect and appreciation for others.” Stiglitz, through his acts of community service, demonstrates that he does not lack knowledge of the hardships faced by others. He is an accomplished individual who has used his academic success to fight for the truth and to put a stop to the injustices facing those less fortunate. In his new book Making Globalization Work, Stiglitz comments on his aversion to inequalities saying, "Those who are concerned about inequality see much of it arising out of luck — the luck of being born with good genes or rich parents or the luck of buying a piece of real estate at the right time," he writes. "Those who are less concerned feel that wealth is a reward for hard work." (Stiglitz 129) Throughout his work, Stiglitz aims to improve the environment, reduce poverty, and create a more open and tolerant society. People who are often unknowledgeable about an area of study tend to leave it up to the professionals to make the appropriate decision. Stiglitz is a qualified individual who can be trusted to make a well-informed, fair decision.

In giving an honorary degree the university tries to “elevate the university in the eyes of the world by honoring individuals who are widely known and highly regarded for achievements in their respective fields of endeavor.” Stiglitz is highly esteemed for his work in the field of economics. Stiglitz’s organizations are helping to foster growth of others in accordance with the mission of USC. Mike Martin very astutely defines the concept of a professional—“advanced expertise, social recognition, and service to clients and community” (Martin 22) Joseph Stiglitz has the expertise, the authority, and the integrity of a successful professional. Though some do not agree with his ideals, Joseph Stiglitz is worthy of an honorary degree from the University of Southern California for his ability to employ his technical skill with his desire for justice for the less fortunate. In his commencement speech to the graduating student, Stiglitz will address the concerns of the moment using the hindsight he has gathered from all his experience. He has an influential message for the current generation and is a role model they should choose to emulate. Joseph Stiglitz would bring even more prestige to an already affluent university.