“Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection, subsidies and other measures) before they can build up their capabilities to compete with superior foreign producers. Of course, when the infant producers 'grow up' and are able to compete with the more advanced producers, the insulation should go. But this has to be done gradually. If they are exposed to too much international competition too soon, they are bound to disappear.”

— Ha-Joon Chang , book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Source: Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008), Ch. 3, Poor theory, poor results, p. 73

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Ha-Joon Chang 44

Economist 1963

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“Ricardo's theory is absolutely right—within its narrow confines. His theory correctly says that, accepting their current levels of technology as given, it is better for countries to specialize in things that they are relatively better at. One cannot argue with that. His theory fails when a country wants to acquire more advanced technologies—that is, when it wants to develop its economy. 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. Ricardo's theory is, thus seen, for those who accept the status quo but not for those who want to change it.”

Ha-Joon Chang book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Source: Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008), Ch. 2: 'The double life of Daniel Defoe; How did the rich countries become rich?', The double life of the British economy, p. 47

“Global economic competition is a game of unequal players … Consequently, it is only fair that we 'tilt the playing field' in favour of the weaker countries. In practice, this means allowing them to protect and subsidize their producers more vigorously and to put stricter regulations on foreign investment. These countries should also be allowed to protect intellectual property rights less stringently so that they can more actively 'borrow' ideas from more advanced countries.”

Ha-Joon Chang book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Source: Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008), Ch. 9, Tilting the playing field, p. 219

“In this highly competitive world, there is a crying need for the government to assure that schools in the country, for one, are able to produce graduates who have the capability to find quality work that mostly requires a sufficient level of technology skills.”

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[www.philstar.com/headlines/2013/02/16/909422/chiz-wants-eco-growth-translated-jobs The Philippine Star]
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“The new trade theory picture of the world looks something like this: Each country has, at any given time, a set of broad resources—land, skilled labor, capital, climate, general technological competence. These resources define up to a point the industries in which the country can hope to be competitive on world markets. […] But a country's resources do not fully determine what it produces, because the detailed pattern of advantage reflects the self-reinforcing virtuous circles, set in motion by the vagaries of history.”

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Source: Peddling Prosperity (1994), Ch. 9 : The Economics of QWERTY

“Who in the same given time can produce more than others has vigor; who can produce more and better, has talents; who can produce what none else can, has genius.”

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“External pressure seems to produce internal unity.”

Kenneth N. Waltz book Man, the State, and War

Source: Man, the State, and War (1959), Chapter V, Some Implications Of The Second Image, p. 149

“Should it not, this essentially producing country, search all parts of the globe and seek to fight with other nations, by exploring in advance the countries likely to favor industries, by studying local needs and resources, by indicating the nature and time of the shipments to be made, etc.?”

Henri Alexis Brialmont (1821–1903) Belgian military engineer and writer (1821-1903)

Source: All the King's Men' A search for the colonial ideas of some advisers and "accomplices" of Leopold II (1853-1892). (Hannes Vanhauwaert), 5. A prospectus by the military Chazal and Brialmont, The military centipede Henri-Alexis Brialmont (1821-1893) http://www.ethesis.net/leopold_II/leopold_II.htm#2.%20 Brialmont in 1853 On The need for a stronger merchant fleet, protected by a naval force, he was amazed that it still did not exist in Belgium, despite the unbridled economic boom that Belgium had entered in, and that had one of the largest ports in Europe. CROKAERT, P. BRIALMONT, A. Brialmont, Eloge et mémoires, 399.

“The market theory is, there should be international mobility of capital. I said, why not international movement of labour? Marketing theory only envisages mobility of all factors of production. That means their medicines can come, but our doctors cannot go. Their engineering goods can come, our engineers cannot go. Secondly, they want the developing countries to open up but deny them access to technology. Certainly, our economies have been too protected. But that has to go gradually.”

V. P. Singh (1931–2008) Indian politician

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“There is no doubt that in a country where the overwhelming majority of the population consists of small agricultural producers, a socialist revolution can be carried out only through the implementation of a whole series of special transitional measures which would be superfluous in highly developed capitalist countries where wage-workers in industry and agriculture make up the vast majority.”

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“If identical goods were being produced at widely differing efficiency in different parts of the United Kingdom or if the United Kingdom and Germany, or Japan, or the United States, were part of a single unit with a single currency, then of course the less efficient producers would be knocked out. That is why Germany is so keen for Britain to go into the European Monetary System, so that it can wipe out the British industries which it is in competition.”

Enoch Powell (1912–1998) British politician

Source: Speech in London (21 March 1980), quoted in Enoch Powell on 1992 (Anaya, 1989), p. 97

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Ha-Joon Chang 44

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