This five-page graduate paper examines the views of Joseph Stiglitz and Philip McMichael concerning the impact of NGOs on developing and transition economies, and compares the recent economic crises in Russia, Asia, and Mexico. The author notes that NGOs must recognize that as transition economies move from planned to market economies they will not benefit from the efficiencies that characterized more developed market economies, but will be plagued instead by the inefficiencies associated with corruption, and by market failures like monopoly, externalities, under-provision of public goods, and asymmetric information.
