Globalisation, Economic Development & the Role of the State

by Ha-Joon Chang

The role of the state in the economy has always been a controversial issue in public debate, but it has become more so in the last quarter of a century with the rise of neoliberal thinking that preaches the virtues of unregulated markets and recommends de-regulation, opening-up, and privatisation.

This push for a minimal, pro-business state, especially in developing countries, has been further intensified with both the rise of globalisation and the many radical neoliberal 'reforms' implemented, often under pressure from multilateral agencies (such as the IMF, the World Bank, and the WTO). In this book, the author highlights the failure of neoliberalism, especially in developing countries, or what he terms 'the intellectual bankruptcy of neoliberalism', which, he believes, 'stems ultimately from its failure to base its discourse on a balanced and sophisticated theory of the inter-relationship between the market, the state, and other institutions'. He also tries to construct a credible alternative theoretical framework to neoliberalism, informed by a balanced understanding of empirical evidence.

The issues covered concern a rather wide range of domestic and international policy issues - including trade policy, privatisation, transnational corporations, and intellectual property rights.

Genres: Economics

344 pages, Paperback

First published December 6, 2002

About the author

Ha-Joon Chang is a South Korean institutional economist, specializing in development economics. Currently he is a reader in the Political Economy of Development at the University of Cambridge.

Reviews

[Trashy Pit · Rating 5 out of 5]

Ha-Joon is the man! Read any one of his books. They are all awesome. He does this really weird thing that economists seem unable to do: Take a Look at the facts to see if they back the theories. He shows that the historical evidence again and again goes against the ridiculous nonsense that passes for "Economics" in this country. I don't necessarily agree with everyone of his own interpretations and explanations, but just laying out the evidence is service enough. And anyway with each book his explanations are getting closer to mine, so I obviously like that ( :

[Scott Goddard · Rating 4 out of 5]

Chang is an oddity among his Neoclassical counterparts. He, unlike the majority of his profession, has faith in the function of government. Indeed in this book, he debunks most of the superficially robust arguments against government intervention into the supposedly irreducibly efficient market, and shows how, with the help of government, industries, and more generally the economy itself, can operate at a more socially optimal level.

These arguments are then put in the context of LDC's and how industrial policy can be beneficial for the adopting country. The aspect of this book most deserving of merit, is how Chang constantly refers to empirical evidence, to support a purely theoretically-based point.

[Anum Tanveer · Rating 3 out of 5]

Just Modernise, Honey

[Kathleen]

(-_-)

[Beth · Rating 3 out of 5]

Read it during my time at Cambridge