Problems with Capitalism
We learned this week from Stiglitz that capitalism is not always effective. He points out that other countries have to take into consideration their social, political, and institutions before they can can transition into a different system of doing things.
Some developing countries are damaged by the help of Western cultures. The price paid by developing countries are higher than the benefits: high unemployment, longer problems of social dissolution, urban violence and they ethnic conflicts in other parts of the world.
Stiglitz supports gradual globalization rather than shock therapy, because he says timing counts. "Timing and they sequencing are important." (Stiglitz p. 58) This alows time to set up the infratructure of banks, regulations, making new jobs, and entrepreneurship. Shock therapy moves quickly, and fail s to establish a good infrastructure and can have devasting effects on a country.
IMF (International Monetary Fund) does not always recommend the best financial advice and can give money to societies who do not need it. They are supposed to advise countrieson the strategies on globalizations but sometimes use  threats of withdrawing funds if the country they are working with do no do what they say. Dr. Gannon summed it up well "do what we say, not as we do."