Reforms in Government Apparatus: Stiglitz View

Economic Adjustment Policies which has been named as “Washington Consensus” by John Williamson in 1990 has emphasize beside others things on Privatization. This approach which has been highly Supported by international agencies Such as World Bank and International Monetary Fund has, however been criticized by the World Bank Ex-Chief economist and noble prize winner-Joseph Stiglitz. Here in this paper we shall review his thoughtful exoticism of “privatization as followed by developing Countries and Supposed by world Bank and international monetary Fund. Stiglitz is of the view that market and states are Complementary and not substitute to each other. These working together would guarantee the Success of the reforms. However, for the state to play a signaling sole it for to undertake necessary reforms in its apparatus. It is only after taking the necessary step to reform the state apparatus that privatization should be Understand Seriously