In his lecture, Professor Stiglitz, who won the Nobel Prize for economics in 2001, outlined the idea of a new global order based on cooperation rather than neoliberalism. He argued that neoliberalism disadvantaged larger segments of society and failed to deliver the efficiency gains it promised, as it is based on a flawed neoclassical economic model. Global cooperation is required to tackle global issues, with the war in Ukraine potentially reshaping the world's economic architecture. The lecture can be viewed at the bottom of this page.
Following the lecture, research fellow Alice Pearson engaged in a captivating interview with Professor Stiglitz, where he shed light on how his personal background profoundly influenced his perspectives on economic systems. He revealed that his upbringing in an Indiana steel town and his study of Plato played pivotal roles in shaping his research agenda. He went on to explain how the conventional symmetric models of neoclassical economics fail to align with real-world complexities, pointing to information asymmetries in economics as the catalyst for imperfect competition and the consolidation of market power. In response to these insights, he proposed an alternative to neoliberalism, emphasizing the need for a ‘better balance between markets, state, and civil society’, supported by regulations that ensure fair competition while safeguarding people and the environment from exploitation. He concludes by saying that “economic theory is supposed to expose those assumptions that are taken for granted but turn out to be critical in the analysis."
Watch the full lecture and interview.