The Golden Straitjacket: A Corset Constraining State Sovereignty
The dominant narrative of globalization promotes the "Golden Straitjacket"—a set of policies based on deregulation and privatization. Ha-Joon Chang exposes this model as a mechanism where the economy grows at the expense of shrinking space for democratic decisions. The imposed corset of neoliberalism causes governments to lose real influence over development directions, as the logic of "one dollar, one vote" displaces the foundations of national sovereignty.
Prosperity Forces Changes in Culture and Work Ethic
Contrary to cultural determinism, it is development that reprograms culture, not the other way around. The examples of Germany and Japan prove that traits such as discipline are the result of industrialization and new incentives, rather than innate characteristics. Productive capabilities and industry are crucial, as they generate productivity growth (TFP) at a pace unattainable for other sectors. Even modern services require a strong industrial base; without it, the post-industrial economy becomes a mirage.
Protectionism: The Foundation of British and American Power
The official history of free trade is a myth. Great Britain and the USA built their power over centuries by using aggressive protectionism and protecting "infant industries." Only after achieving dominance did they begin to promote liberalization—a process Chang calls kicking away the ladder they themselves climbed. In this process, religions like Islam or Protestantism served as institutional modules, building the trust necessary for the market, but their success depended on state support.
The IPR System Blocks Knowledge Diffusion to Poor Countries
The global intellectual property (TRIPS) regime serves to drain capital from the South to the North. Instead of stimulating innovation, excessive patent protection creates barriers for developing countries, which historically (like Switzerland or Korea) grew wealthy through reverse engineering. This system deepens the conflict between market logic and democracy, promoting asymmetric macroeconomics: Keynesianism for the rich and rigorous free markets for the poor.
The Market Does Not Eliminate Structural Sources of Corruption
Corruption is not a moral failing but a result of flawed structures. The market often exacerbates it by creating demand for public goods that should not be commodities. Liberalization, instead of healing the system, can privatize corruption. The key is whether institutions can keep capital within the country or allow it to flee, which determines the real impact of malpractice on GDP growth.
AI and the Digital Economy: New Sources of Inequality
In the era of artificial intelligence, data monopolies are becoming a new form of "kicking away the ladder." Without active state policy, developing countries will be reduced to providing cheap labor for data labeling. The solution is tilting the playing field—using tariffs and subsidies to level the odds for weaker players. A similar logic is required for the green transformation; it necessitates protecting "green infant industries" from predatory competition.
Chang vs. the Mainstream: A Clash of Economic Visions
Chang's heresies strike at the foundations of neoclassical and Austrian economics. The author argues that comparative advantage is not a permanent given but can be created through bold state intervention. Economic success is not the result of a "spontaneous order" but the effect of strategic planning and building economic muscle over decades.
Summary
In the face of the climate crisis and the dominance of algorithms, can we afford the luxury of orthodoxy? Ha-Joon Chang reminds us that development is the art of courage and breaking dogmas. Only heretical thinking, freed from the shackles of the "Golden Straitjacket," allows for the design of economic models tailored to local needs. Instead of blindly trusting textbooks, we must learn from history: the wealth of nations is built with patience, protection, and institutional imagination. The future belongs to those who dare to challenge the status quo.
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