Question

Can someone please give me a summary on chapter 1 (the lexus and the olive tree revisted) in the book bad samartians by Ha-Joon Chang

Answer 1

Summary of Chapter One -The lexus and olive tree revisted from BAD SAMARTIANS BY HA-JOON CHANG.

In reading the prologue and first chapter of “Bad Samaritans” by Chang, he speaks on the intentions of developed countries wanting to build or shape the economic growth/advancements in developing countries, “so that the utopian economic structure they longed for can finally be achieved”. Chang's use of the term "Bad Samaritans" represents the idea of good intentions regrettably resulting in bad outcomes. Chang argues that developed countries, in their quest to “uplift” underdeveloped countries, have "unintentionally" been misleading these countries to further path of economic destruction. Developed countries according to Chang has been pushing the practice of neo-liberalism down the throats of these developing countries, claiming that (or swearing by it) neo-liberalism will result in economic success, just as it did in the past for themselves- USA, Britain, and most of Asia. However Chang argues that neo-liberalism played no part in initially building the economies of these economic power houses; but is instead a practice picked up after a country's economic success was achieved, in order to further sustain that stature (through the benefits of free trade and the manipulation of the unholy trinity). So what appears to be Chang's main objective is proving that the economic development and advancements of developed countries, contrary to what is being said, was not due to the practice of neo-liberalism, but instead has mainly to do with government intervention/control - such as protectionism, high tariffs and so on. Chang believes that neo-liberalism is not the answer for promoting the growth of an economy, but is instead a practice contributing to economic growth retardation. Yet at the same time while he argues this, he appears to be a double edged sword, (contradicting himself), by claiming that these economic power houses are unaware of the damage being down by them; nevertheless at the same time he laments about the terms and conditions associated with the unholy trinity- IMF, WTO, and the World Bank Organization- which is largely controlled by these economic giants. I don’t agree with Chang’s belief that these countries are unaware that they are hindering economic growth through the pushing of their neo liberal theories/practices. I think it is just a strategy used by these countries to further dominate the economic market; Neo-liberalism is a more subtle way of kicking away the ladder in my belief.

Thank you.