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Contributions from
the Column
Books and Media
Europe’s future role in the international order
Rules of thumb: sound case studies
Trade theory: for export, not for consumption
Genetics-discourse:
plenty of contributions – even more readers
Documents:the „resource curse“
8-9/2004
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Trade theory: for export, not for consumption
Ha-Joon Chang:
Kicking Away the Ladder. Development Strategy in Historical Perspective.
London, Anthem Press 2002, 186 pp.,
$ 21.95, ISBN 1-84331-027-9
“Like most English manufactured goods, English trade theory is for export, not for consumption at home.“ Friedrich List
Reduce tariffs, abolish import restrictions, protect patents – these are the demands the North is currently imposing on the developing countries of the South. Criticism of such (neo)-liberal standard formulas is usually based on the difficult social consequences of such policies. Ha-Joon Chang takes an entirely different approach in his critique of the “international development policy establishment”. He explores the question of whether the advanced states themselves historically followed the development model they are today preaching to poorer nations. Chang’s book rediscovers the German economist Friedrich List, who back in 1841 concluded that England’s rise to industrial giant was mainly thanks to its well-directed industrial policy. Having reached the peak of mercantile dominance, to safeguard its position and obstruct competitors, England then kicked away the ladder by which it had climbed to the top. 160 years on Chang, basing his arguments on solid empirical foundations, takes issue with numerous historical myths of liberal economics, such as the assumption that the US was a bastion of free trade while aiming towards economic world power. His criticism is levelled at prevailing liberal “market fundamentalism” for obscuring the paths historically trodden by today’s advanced states on their way to the top. In actual fact nearly all the advanced states practised the exact opposite of what they are today imposing on the South through the WTO.
In this carefully-structured, detailed and cogently-argued book Chang, who teaches development studies in Cambridge, investigates the economic and industrial policies followed by today’s advanced states. The history of institutional development confirms his argument. He concludes that essential components of good governance were historically a result rather than a cause of economic success. “Do as I say, not as I did“ – is one way to sum up advanced nations’ policies according to Chang’s book. But it is in fact alarming to see how poorly the crucial theories of established development policy stand up to empirical scrutiny.
Carel Mohn
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