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Quote by Ha-Joon Chang

“It's not just about the current economic environment. History shows that slashing budgets always leads to recession.”

Quote by Ha-Joon Chang

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Ha-Joon Chang
Ha-Joon Chang

Ha-Joon Chang is a Korean-born economist known for his research on development economics and issues of globalization. His works, such as '23 Billion People's Challenge' and 'Kicking Away the Ladder', challenge traditional development theories and propose new models of development. more

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“The danger is not only that these austerity measures are killing the European economies but also that they threaten the very legitimacy of European democracies - not just directly by threatening the livelihoods of so many people and pushing the economy into a downward spiral, but also indirectly by undermining the legitimacy of the political system through this backdoor rewriting of the social contract.”

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Author:Ha-Joon Chang
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“The history of capitalism has been so totally re-written that many people in the rich world do not perceive the historical double standards involved in recommending free trade and free market to developing countries.”

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Book:Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism
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“It takes time and experience to absorb new technologies, so technologically backward producers need a period of protection from international competition during this period of learning. Such protection is costly, because the country is giving up the chance to import better and cheaper products. However, it is a price that has to be paid if it wants to develop advanced industries.”

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Book:Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity
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“Rich countries have 'kicked away the ladder' by forcing free-market, free-trade policies on poor countries. Already established countries do not want more competitors emerging through the nationalistic policies they themselves successfully used in the past.”

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Book:Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity
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“As South Korea shows, active participation in international trade does not require free trade. Indeed, had South Korea pursued free trade and not promoted infant industries, it would not have become a major trading nation. It would still be exporting raw materials (e.g., tungsten ore, fish, seaweed) or low-technology, low-price products (e.g., textiles, garments, wigs made with human hair) that used to be its main export items in the 1960s.”

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Book:Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism
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“All the alleged key causes of SOE [State-Owned Enterprise] inefficiency - the principal-agent problem, the free-rider problem and the soft budget constraint - are, while real, not unique to state-owned enterprises. Large private-sector firms with dispersed ownership also suffer from the principal-agent problem and the free-rider problem. So, in these two areas, forms of ownership do matter, but the critical divide is not between state and private ownership - it is between concentrated and dispersed ownerships.”

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Author:Ha-Joon Chang
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“The days are over when technology can be advanced in laboratories by individual scientists alone. Now you need an army of lawyers to negotiate the hazardous terrain of interlocking patents. Unless we find a solution to the problem of interlocking patents, the patent system may actually impede the very innovation it was designed to encourage.”

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Book:Bad Samaritans: rich nations, poor policies, and the threat to the developing world
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