Selected Book
Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism
- Hardcover
- Author: Ha-Joon Chang
- Publisher: Bloomsbury Press
- Release Date: December 2007
- ISBN-10: 1596913991
- ISBN-13: 9781596913998
- List Price: $26.95
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Summaries and Customer Reviews provided by Amazon
SummaryA rising young star in the field of economics attacks the free-trade orthodoxy of The World Is Flat head-on—a crisp, contrarian history of global capitalism. One economist has called Ha-Joon Chang “the most exciting thinker our profession has turned out in the past fifteen years.” With Bad Samaritans, this provocative scholar bursts into the debate on globalization and economic justice. Using irreverent wit, an engagingly personal style, and a battery of examples, Chang blasts holes in the “World Is Flat” orthodoxy of Thomas Friedman and other liberal economists who argue that only unfettered capitalism and wide-open international trade can lift struggling nations out of poverty. On the contrary, Chang shows, today’s economic superpowers—from the U.S. to Britain to his native Korea—all attained prosperity by shameless protectionism and government intervention in industry. We have conveniently forgotten this fact, telling ourselves a fairy tale about the magic of free trade and—via our proxies such as the World Bank, International Monetary Fund, and World Trade Organization—ramming policies that suit ourselves down the throat of the developing world. Unlike typical economists who construct models of how the marketplace should work, Chang examines the past: what has actually happened. His pungently contrarian history demolishes one pillar after another of free-market mythology. We treat patents and copyrights as sacrosanct—but developed our own industries by studiously copying others’ technologies. We insist that centrally planned economies stifle growth—but many developing countries had higher GDP growth before they were pressured into deregulating their economies. Both justice and common sense, Chang argues, demand that we reevaluate the policies we force on nations that are struggling to follow in our footsteps. |
Customer Reviews
Average Rating:
Seditious? (Not a review)
Didn't know this but this book was "one of 23 books designated 'seditious' by Korea's Defense Ministry." Tried looking for it in Korea's Yonsei Library but couldn't find a copy even though I found many of the author's other books. Hmmm....makes me want to read it even more.
Informative, readable, clever book
Ha-Joon Chang's book is probably the best book on economics I have ever read. Although it goes against the free trade consensus, Chang's ideas are notable for not falling into typical anti-globalization rhetoric. He is not anti-trade; in fact Chang thinks development should occur on more or less the lines it has for the richer nations.
Although Chang works fully within the academic world, his examples are very understandable and his prose very readable. This is a book that contributes not only to the scholarly discussion but also to popular education.
As other reviewers have noted, the book also contains a good balance of humor, as well as personal examples from Chang's life experience.
The side of capitalism you don't read about.
This piece is arguably the most thorough examination of corporate driven globalization to date. In this highly critical work every aspect of free trade and neo-liberal policy is examined. Mr. Chang is sure to give you the neo-lib reasoning to their policies and breaks them down with the facts.
He starts and ends the book with hypothetical situations. In both instances he presents an purposely exaggerated, but still quite plausible, depiction of what free trade could look like in the future. IMO the best chapter is number two. In this chapter he examines the United State's and British rise to prominence. You quickly realize it was not through a "level playing field" or a "Golden Straight Jacket " as advocated by Thomas Friedman, but through 40% tariffs and mass state intervention.
Specializing in development econ. Chang spends most of the book looking at how the IMF, WTO, and WB have implemented neo-lib policies and consequentially devastated economies in the global south. His argument and evidence are damning! The statistics provide alone are enough to make the book worth reading. The issues of inflation, corruption, child labor, Intellectual property rights and, democracy are all analyzed at length.
The most important thing to take from this work is that free trade is partially acceptable when nations have fully developed and their "infant industries" are ready to step onto the global scene. However, this can take many years where protectionism and other statist policies are required. There is no alternative for developing nations. Nations that stick with their low productivity "natural advantages" stay on the same economic level. Only when countries defy the market and seek new tech. do they climb the latter to prosperity that the Western World is maliciously kicking down.
I'm studying to be a professor in International Relations and I assure my future students this will be a required text!
Confirms Naomi Klein
Naomi Klein's masterful work Shock Doctrine documents in exhaustive detail what is wrong with the free trade theory and practice that is being enforced around the globe. This work, though much smaller and simpler in scale, essentially confirms what Klein says, that the IMF and WTO and World Bank are not the helpers of the developing world, but their enslavers. Klein, however, personalizes her accusations, blaming the Chicago Boys (ie disciples of Milton Friedman's Chicago School of economics) and presents it as almost a grand conspiracy. Chang sees less bad intent and more misunderstanding behind the disastrously wrong prescription being given to the world for how to prosper.
The writing style is clear and simple, and no one should have much trouble following Chang's line of reasoning. He makes good use of a few simple metaphors to prove his point. His image of his son, and his need for sheltering and support until he can get an education and grow up to be a productive member of society is memorable--the point being that urging under-developed countries to compete on a level playing field with mature manufacturing countries is just as silly as sending his 8 year old off to work would be. The comparison is telling because just as the non-productive years of a child's life is what enables him to become well-educated, so too there are children whose future is foreclosed by their need to work from childhood. Developing countries are in just that position.
The main weakness that I see in this book is a certain thinness in the factual support. Very large conclusions are often apparently supported by a handful of examples. His native Korea was as poor as Mozambique just a generation ago, and look what it's done. Therefore, don't rule out Mozambique as a future world power. But are there other similar examples? European travelers thought Japanese were lazy 100 years ago. Ok, but the evidence is one or two small anecdotes. Was that really the general view? Was it really a widespread belief that Germans were inefficient and corrupt?
Also, most who oppose things like NAFTA in this country do so because it is hurting our own economy. Is there really much concern in the US for the consequences for the poor countries? One can only assume that free trade must be beneficial for *someone* and if it isn't the poor countries, it would probably be...us. So the idea that we're doing this for our own benefit may not sit well with American protectionists.
But an enlightening read, and very accessible.
A qui profite? (who profits?)
The author rightfully points out that (firms in) underdeveloped countries can not compete successfully with the big international companies. Dropping their defenses (allowing free trade) usually ruins them. All this is proved very well in the book and is also competently discussed in most other reviews. But this is not the end of the story.
What happens to the population in the developed countries under such free trade? The big companies have the incentive (better profits!) to move factories abroad or just to sell them. Well-paid jobs are lost. Entire industries are moving away. Therefore, the workers in the developed countries also suffer and as a result, the majority of the population suffers too. The only winners for the moment are the big internationals. In the long run they are doomed too.
Take America and China. The big American multinationals (think Wal-Mart) made a deal with China and gradually most American manufacturing moved to Asia. The big multinationals profited, China profited too (it got the plants and the know-how). Who lost? American industry workers lost their jobs. The talking heads explained that everyone benefited. Not true! Cheep goods? What about quality goods and good salaries? When you loose your job and go to work for Wal-Mart, a cheep shirt is no relief. The special skills of the workers are lost and these skills represent valuable investments. You can not benefit without a manufacturing industry. When you have no industry you have no engineering, later - no science. The bad Samaritans are bad also for their own countries