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He also mentions (p71) a World Bank sponsored and US
backed electricity deal in Pakistan, where narrow private interests earned profits from prearranged
and exorbitant prices.
Stiglitz also refers to ‘Trickle Down’ economics (pp78, 208). This he describes as the
notion that economic growth will eventually reach the poor, as the rich spend their increased
income...
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Instead, wealth trickled up to members of narrow interests. Stiglitz describes how
Boris Yeltsin created a powerful class of oligarchs and businessmen. The IMF loaned billions
to Russia, while political elites benefited from special tax privileges and looted public coffers.
Local government officials squeezed private firms so hard that they had no incentive to
invest (p190)...
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globalization and its discontents
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