Bad Samarians

Ha-Joon Chang is a Cambridge heterodox economist, who specializes in victimization frugal science and the abject poverty of the Third existence countries. Trained at the University of Cambridge, he has served as a consultant to the World intrust, the European Investment Bank, and diverse United Nations agencies. Since 1992 he has also served on the editorial board of the Cambridge ledger of Economics, he is the author and contributor of numerous researches in economical science.The objective of this leaven to review his views described in his controversial new book speculative Samaritans The Myth of Free Trade and the Secret History of Capitalism, and to comp ar it with the more than traditional views where it feasible. unhealthful Samaritans Mostly in his book Ha-Joon Chang appeals to his opponents, orthodox economists, and generalists in particular. Ha-Joon Chang has wide personal experience beca utilize he was born in the estate that was one of the poorest on Eart h that conviction. The new book starts with the description of economic downturn in Korea after the Korean War.It is hard to believe, but the historied Samsung Company that time was subsidized by sugar refining and cloth enterprises. Another big company, Pohang Iron and Steel Co. , or POSCO, which now is the tierce largest steel company in the field, was state-owned and couldnt get the support from the World Bank. Analyzing the learning of other economics in the 1960s, the author notices that Japanese establishment refused to fol confused the politics of promiscuous switch that time and this decision had a positive imp mo on Japanese car manufacturing industry.In other solecism modern famous Japanese companies could be the filials of Western companies, and nothing more. This thonking leads the reader to the opinion of what Ha-Joon Chang calls the mischievous Samaritans. As the author described, people in the fertile countries who preach put out markets and free trade to the poor countries in read to capture larger shares of the latters markets and preempt the emergence of possible competitors. They are saying do as we say, not as we did and act as perverting Samaritans, taking advantage of others who are in trouble. Chang divides Bad Samaritans into two groups first are the leaders working in the deuced trinity of global financial organizations World Bank, World Trade governing body and Inter field Monetary Fund, and second are the ideologues those who believe in Bad Samaritan policies because they think those policies are right, not because they personally benefit from them much, if at all. The gross feature of both groups is the adherence to a doctrine called neoliberalism, which is dominating in the global economy from 1970s till nowadays.The worst in this doctrine, accord the opinion of the author, is the fact that those countries that propagate this doctrine all over the world reject its implementation in their own economical system s. The key characteristics of neoliberalistic economics were called Golden straitjacket, which is the only root to economic success check its advocates, desire unholy trinity. They actively implement this economic polity in poor and growing countries.As it known from the Nobel-awarded researchers of orthodox economists, the Golden Straitjacket policy struggle for trade liberalization, reducing corruption and state bureaucracy, privatization of state-owned enterprises and pensions, balancing the study budget, intellectual rights protection and other trends and policies which are intended to guarantee the shelter economic growth. In real life the implementation of these policies in developing countries leads to creation of economical dependence from global financial organizations.At the same time the most developed countries dont implement the Golden Straitjacket policy. Ha-Joon Chang writes Practically all of todays developed countries, including Britain and the US, the suppos ed homes of the free market and free trade, progress to become rich on the buttocks of policy recipes that go against neo-liberal economics. Rich countries protect their manufacturer from the foreign investments and use subsidies and protections to protect their industries. The WTO sanctions are considered by rich countries as the lesser evil.Chang enumerates bombastic men from different countries whose economic solutions became the basis of their countries flourishing. All of them struggled for the development of the national intersection and used protectionists politics. Chang notices out that nowadays the most developed countries do the same, especially the regular army. He claims the Third World War has already begun and the USA tries to main(prenominal)tain its position as global hegemon. There are already conquered sides in this war, and one of them is the African countries. As the result of neoliberalism policy,The living standards in Africa are falling within the rece nt thirty years, because IMF and World Bank run most of African economies virtually. All the features of neoliberalizm described above were implemented in African countries. As the result the struggle with corruption washed-up the system of communities existed before, the struggle with bureaucracy left courtiers without the perfect executive force out branch, the intellectual property protection prevented the development of sciences, and pension privatization left the aged people to the poverty.Chang criticizes the struggle with the corruption because, according his words, Most of todays rich countries successfully industrialized despite the fact that their own existence life was spectacularly corrupt. Another object of sharp critics of the author is the concept of ethnical influence on the economical performance of the country. The popular thought process tells that the culture if the country defined the business methods of its people and thus their economic success. First thi s idea is an intolerant and chauvinists one, second, cultural differenced fail be the main explanation for economic success.He claims that the culture of the country is the result of economical development and not the cause. Using the chapters describing the mechanisms of economical development in different countries Chang proves that cultural explanation is just the screen to mask the real reason the richest countries are afraid of competitors from below and do their best to annihilate the possible disputation in the moment of origin. Generally, Chang writes, the policy of protectionism is absolutely normal, because it exists for ages. The problem is in deceit surrounding free trade.According to Chang, Belief in the virtue of free trade is so central to the neo-liberal orthodoxy that it is effectively what defines a neo-liberal economist. You may caput (if not totally reject) any other element of the neo-liberal agenda outdoors capital markets, strong patents, or even privatizat ionand still stay in the neo-liberal church. However, once you object to free trade, you are effectively inviting ex-communication. Analyzing the existing military post on the global market, Chang concludes that the golden straitjacket fits the healthy countries only.This policy allows production distribution between countries, and poor countries are forces to specialize in the empyrean s that offer low productivity growth and thus low growth in living standards. This is why so few countries have succeeded with free trade, while most successful countries have used child industry protection to one degree or another. Thus, the free trade, according the Chang, is a fiction and the tool for rich countries and unholy trinity for redistribution of wealth. ConclusionThe views of Ha-Joon Chang to the development of global economy nowadays are contradictory and dont correspond to the mainstream in the economical science. However there are many writers and scientists with the same mind w ho share Changs ideas that the ideology of free trade and its implementation are two different things, and the first of them can be used as the powerful tool of economical influence. Reference Ha-Joon Chang. 2007. Bad SamaritansThe Myth of Free Trade and the Secret History of Capitalism. Bloomsbury Press