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How Nations Escape Poverty: Vietnam, Poland, and the Origins of Prosperity
During the 20th century, Vietnam and Poland were both victims not only of devastating wars, but also of socialist planned economies that destroyed whatever war hadn’t already. In 1990, Vietnam was still one of the poorest countries in the world, while Poland was one of the poorest in Europe. But in the three decades since then, both countries have drastically improved their citizens’ standards of living and escaped the vicious cycle of national poverty.
In this book, Rainer Zitelmann identifies the reasons behind the sensational growth of both nations’ economies, drawing out the lessons that other countries can learn from these two success stories. To explain the source of their success, he returns to Adam Smith’s 1776 treatise, The Wealth of the only way to overcome poverty is through economic growth, Smith wrote, and economic freedom is the crucial prerequisite for such growth.
Developments over the past 250 years have proved Smith right. The market economy has led to a global decline in poverty unparalleled in human history. Compare this to the fifty years of “development aid” in Africa that have only entrenched the status quo, and it is clear which approach yields superior results.
Despite these strides, almost ten percent of the world’s population still lives in extreme poverty. So, what measures actually help to alleviate poverty today? Through a wealth of data and stories from the everyday lives of Polish and Vietnamese people who experienced reforms, Zitelmann demonstrates the persistent relevance of Smith’s ideas to economic flourishing in the 21st century.
In this book, Rainer Zitelmann identifies the reasons behind the sensational growth of both nations’ economies, drawing out the lessons that other countries can learn from these two success stories. To explain the source of their success, he returns to Adam Smith’s 1776 treatise, The Wealth of the only way to overcome poverty is through economic growth, Smith wrote, and economic freedom is the crucial prerequisite for such growth.
Developments over the past 250 years have proved Smith right. The market economy has led to a global decline in poverty unparalleled in human history. Compare this to the fifty years of “development aid” in Africa that have only entrenched the status quo, and it is clear which approach yields superior results.
Despite these strides, almost ten percent of the world’s population still lives in extreme poverty. So, what measures actually help to alleviate poverty today? Through a wealth of data and stories from the everyday lives of Polish and Vietnamese people who experienced reforms, Zitelmann demonstrates the persistent relevance of Smith’s ideas to economic flourishing in the 21st century.
240 pages, Hardcover
Published March 26, 2024
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Displaying 1 - 7 of 7 reviews
January 8, 2025
Vietname e Polónia como exemplos de que uma economia pró-mercado (capitalista) será sempre melhor do que uma economia socialista/comunista. Só com liberdade económica se combate a presença. Bons exemplos, fundamentos com muitos dados e inquéritos de opinião interessantes.
August 2, 2024
Der Autor bringt in diesem Buch die tragische Geschichte des Sozialismus in Vietnam und Polen und deren Auswirkungen auf die Wirtschaft und das Realvermögen der Bürger näher. Dadurch zeigt das Buch die Überlegenheit des Kapitalismus und der freien Marktwirtschaft über den Sozialismus sowie die destruktiven Folgen der Planwirtschaft. Zudem betont die Reichtumsforschung in diesem Buch die Korrelation zwischen Sozialneid, der Einstellung zu Reichen und dem Wirtschaftswachstum. Ein lesenswertes Werk, das zum Nachdenken anregt und den Horizont in Bezug auf Geschichte, Wirtschaft und Gesellschaft erweitert.
April 6, 2025
What Vietnam can teach the world about resilience, reform, and rising from ruin
There’s something incredibly powerful about a book that blends economic history with human grit—and How Nations Escape Poverty by Rainer Zitelmann does exactly that. In this compact but impactful read, Zitelmann zooms in on Vietnam’s remarkable journey from a war-torn nation to one of the most dynamic economies in Asia. It’s a story of broken systems, bold reforms, and a relentless focus on moving forward.
From Ruins to Reform
Vietnam’s postwar years were nothing short of brutal. The country emerged from the Vietnam War devastated—its infrastructure shattered, its people exhausted, and its economy crumbling under a rigid socialist system. Zitelmann paints a vivid picture of how this centrally planned economy led to widespread shortages, high inflation, and deep poverty.
But the heart of the book lies in what came next: Doi Moi—the sweeping market-oriented reforms launched in the late 1980s. These weren’t just economic tweaks. They were a total rethinking of how the country should function. Zitelmann makes it clear that this shift wasn’t ideological; it was about survival. As he puts it, “The only options from Nguyen Van Linh’s point of view were simply ‘renew or die.’”
Why Vietnam Succeeded
So, what made these reforms work? According to Zitelmann, it wasn’t just about policy—it was about mindset. He highlights Vietnam’s pragmatism, its focus on the present, and its openness to learning from other nations as essential cultural assets. Instead of clinging to past ideologies, Vietnam embraced what worked, learned from countries like China and Singapore, and forged its own path.
Another standout point is the role of women in Vietnam’s economic renaissance. Zitelmann celebrates the leadership and entrepreneurship of Vietnamese women, many of whom now run top businesses and drive innovation.
A Model for the Future?
Vietnam’s success raises a larger question: Can other developing nations learn from this model? Zitelmann doesn’t offer a one-size-fits-all solution, but his book suggests that adaptability, reform, and cultural strengths can be just as important as foreign aid or natural resources.
Final Thoughts
How Nations Escape Poverty is a fascinating read for anyone curious about development, economics, or Vietnam’s incredible transformation. It’s not dense or academic—it’s personal, practical, and deeply hopeful. Zitelmann reminds us that poverty is not destiny, and that with the right leadership and mindset, even the most battered nations can rise.
Favorite Quote
“The only options from Nguyen Van Linh’s point of view were simply ‘renew or die.’”
If you're into stories about real-world change, grounded in history but full of forward-looking insight, this book is well worth your time.
There’s something incredibly powerful about a book that blends economic history with human grit—and How Nations Escape Poverty by Rainer Zitelmann does exactly that. In this compact but impactful read, Zitelmann zooms in on Vietnam’s remarkable journey from a war-torn nation to one of the most dynamic economies in Asia. It’s a story of broken systems, bold reforms, and a relentless focus on moving forward.
From Ruins to Reform
Vietnam’s postwar years were nothing short of brutal. The country emerged from the Vietnam War devastated—its infrastructure shattered, its people exhausted, and its economy crumbling under a rigid socialist system. Zitelmann paints a vivid picture of how this centrally planned economy led to widespread shortages, high inflation, and deep poverty.
But the heart of the book lies in what came next: Doi Moi—the sweeping market-oriented reforms launched in the late 1980s. These weren’t just economic tweaks. They were a total rethinking of how the country should function. Zitelmann makes it clear that this shift wasn’t ideological; it was about survival. As he puts it, “The only options from Nguyen Van Linh’s point of view were simply ‘renew or die.’”
Why Vietnam Succeeded
So, what made these reforms work? According to Zitelmann, it wasn’t just about policy—it was about mindset. He highlights Vietnam’s pragmatism, its focus on the present, and its openness to learning from other nations as essential cultural assets. Instead of clinging to past ideologies, Vietnam embraced what worked, learned from countries like China and Singapore, and forged its own path.
Another standout point is the role of women in Vietnam’s economic renaissance. Zitelmann celebrates the leadership and entrepreneurship of Vietnamese women, many of whom now run top businesses and drive innovation.
A Model for the Future?
Vietnam’s success raises a larger question: Can other developing nations learn from this model? Zitelmann doesn’t offer a one-size-fits-all solution, but his book suggests that adaptability, reform, and cultural strengths can be just as important as foreign aid or natural resources.
Final Thoughts
How Nations Escape Poverty is a fascinating read for anyone curious about development, economics, or Vietnam’s incredible transformation. It’s not dense or academic—it’s personal, practical, and deeply hopeful. Zitelmann reminds us that poverty is not destiny, and that with the right leadership and mindset, even the most battered nations can rise.
Favorite Quote
“The only options from Nguyen Van Linh’s point of view were simply ‘renew or die.’”
If you're into stories about real-world change, grounded in history but full of forward-looking insight, this book is well worth your time.
May 15, 2025
This book begins with a defence of Adam Smith and a clear critique of how his ideas have been misunderstood over time. Zitelmann builds his central argument around the claim that prosperity comes from embracing capitalism and fostering a positive, pro-entrepreneurial mindset. He champions economic freedom as the foundation of long-term national success.
One of the most compelling parts of the book is the section on Vietnam. Zitelmann offers a concise, informative look at the Doi Moi reforms, which opened up Vietnam’s economy in ways that echo China's earlier transformation. As someone who has experienced the buzz of modern-day Saigon, I found this historical and geopolitical context both accurate and engaging.
However, the narrative becomes less convincing when the author shifts his focus to Poland. His primary sources are individuals associated with FOR and Leszek Balcerowicz – vocal proponents of radical free-market reforms in the 1990s. This creates a noticeable ideological tilt, with the book presenting a one-sided account of Poland’s economic history. Criticism is heavily directed at the previous PiS government, particularly around democratic backsliding. Yet, there’s little acknowledgement of its popular and economically effective social policies, such as the introduction of a minimum wage and the 500+ child benefit programme, which significantly reduced child poverty.
Zitelmann’s sources dismiss these reforms as fiscally irresponsible, but they have endured multiple political cycles and have not caused the economic collapse that critics predicted. The omission of these successes weakens the book’s argument, especially when more balanced perspectives, like Marcin Piątkowski’s Europe's Growth Champion: Insights from the Economic Rise of Poland, are cited but selectively used. Piątkowski’s analysis, highlighting the historical roots of Poland’s success in universal education, institutional reform, and social cohesion, is largely ignored.
Despite its flaws, the book remains an accessible and thought-provoking read. The comparative angle between Poland and Vietnam is genuinely interesting, particularly when Zitelmann highlights personal anecdotes and lived experiences under socialism. For example, his depiction of socialist Poland, contrasted with post-reform dynamism, brings a human touch to the narrative.
In the end, the book feels like it’s driven more by a predetermined thesis than an open-ended inquiry. Still, it is a useful contribution to debates about development, especially for those willing to read it with a critical eye.
One of the most compelling parts of the book is the section on Vietnam. Zitelmann offers a concise, informative look at the Doi Moi reforms, which opened up Vietnam’s economy in ways that echo China's earlier transformation. As someone who has experienced the buzz of modern-day Saigon, I found this historical and geopolitical context both accurate and engaging.
However, the narrative becomes less convincing when the author shifts his focus to Poland. His primary sources are individuals associated with FOR and Leszek Balcerowicz – vocal proponents of radical free-market reforms in the 1990s. This creates a noticeable ideological tilt, with the book presenting a one-sided account of Poland’s economic history. Criticism is heavily directed at the previous PiS government, particularly around democratic backsliding. Yet, there’s little acknowledgement of its popular and economically effective social policies, such as the introduction of a minimum wage and the 500+ child benefit programme, which significantly reduced child poverty.
Zitelmann’s sources dismiss these reforms as fiscally irresponsible, but they have endured multiple political cycles and have not caused the economic collapse that critics predicted. The omission of these successes weakens the book’s argument, especially when more balanced perspectives, like Marcin Piątkowski’s Europe's Growth Champion: Insights from the Economic Rise of Poland, are cited but selectively used. Piątkowski’s analysis, highlighting the historical roots of Poland’s success in universal education, institutional reform, and social cohesion, is largely ignored.
Despite its flaws, the book remains an accessible and thought-provoking read. The comparative angle between Poland and Vietnam is genuinely interesting, particularly when Zitelmann highlights personal anecdotes and lived experiences under socialism. For example, his depiction of socialist Poland, contrasted with post-reform dynamism, brings a human touch to the narrative.
In the end, the book feels like it’s driven more by a predetermined thesis than an open-ended inquiry. Still, it is a useful contribution to debates about development, especially for those willing to read it with a critical eye.
December 24, 2025
Very good book. Despite being more of a sociology book, economists should read this, matter of fact, anyone should. It gives a very good overview of the importance of how a population views different traits or aspects, such as financial well-being, and how much of an impact it has on prosperity. It is truly interesting how, in communist vietnam people view rich people far more favorably than Western Europeans do, and that might indicate why the former has had so much success in recent times while the latter stagnates.
January 26, 2025
Solo analiza la salida de países del comunismo a través de medidas economicas liberales sin tener en cuenta los otros factores sociales que traen aparejados.
Displaying 1 - 7 of 7 reviews