And it’s therefore clearly in the interests of rich nations to promote free trade. Free trade, he argues, only works when you want to maintain the status quo of comparative advantages. Without protection, a developing nation’s economy will be forever low-tech, restricted to to the extport of agricultural or other natural resources. But the risk is that the industries will be destroyed by the unequal competition. Similarly, opening up a developing nation to unbridled free trade may certainly provide the incentive to increase their fledgling industries’ productivity (but without providing the wherewithal). It is only by Chang nurturing his son through university that he stands the chance of becoming an engineer or a brain surgeon. Chang argues if this were to happen his son would be forever locked into low-paid manual jobs. The free-traders would have Jin-gyu go out into the streets to clean shoes in order to earn an honest living.

He gets his clothes, food and education paid for by Chang. His 6-year old son, Jin-gyu, is currently protected from the harsh outside world. But his major point is that you should only have a level playing field when players are of equal ability. This book articulates that “but” comprehensively and elegantly.Ĭhang is not anti-globalization (he recognises that development is faster when countries are interconnected - though he does note the DPRK’s invention of synthetic thread, vinalon, developed in complete isolation), and is not anti-free-markets per se. Like listening to an interview with a bullying politician you know there are counter-arguments, if only he would shut up and let you think. But you have a niggling sense of unease that something must be wrong with what’s being said - that it can’t be that simple.

Read a typical book which espouses liberal free-trade globalisation and a typical reaction is “Yes, but…” Books such as “Lexus and the Olive Tree” are well written, and carry you along in the sweep of the argument.

Prof ha joon chang