Ha-Joon Chang. Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism New York/Berlin/London: Bloomsbury Press, 2008.
Reviewed by T. Hatch
The neoliberal ideological belief that free trade benefits all economic participants is a risible notion. The agenda of deregulation, privatization, and the opening up of international trade and investment far from bringing prosperity to developing countries has, in the post-1980s world, increased poverty and decreased growth. Professor Chang argues that despite the best efforts the International Monetary Fund, the World Bank, the World Trade Organization (a.k.a. the “Unholy Trinity”), and establishment cheerleaders such as Thomas L. Friedman no wealthy country ever got that way by subscribing to the neoliberal orthodoxy.
Notwithstanding the free trade palaver to the contrary, no developing nation ever attained economic well-being by any other means than a combination of protection, subsidies, and discrimination against foreign investment e.g. South Korea. Besides ignoring the pernicious effects of colonialism and unequal trade deals that neoliberal globalizationalists seem to have overlooked, the post-1982 results of Bad Samaritan economic policies have been slower growth, greater instability, and a greater inequality of income distribution. With the already rich countries controlling 80% of output, 70% of international trade, and 70 to 90% of foreign direct investment, it is difficult to imagine a less developed country ascending to the economic promised land via a “level playing field.”
Chang maintains that “It is actually quite curious that free-market economists who are so much in favor of choice and autonomy do not hesitate to oppose it when it is by developing countries.” This raises the salient question of why it is that the orthodox neoliberals are so intent on forcing developing countries to comply with the international agreements that they are pushing? After all, this is directly counter to their beloved market logic. Why not let the developing countries who refuse to play along be punished or rewarded by investors?
There is also a healthy dose of hypocrisy in all of this Chang asserts. It is essentially a system of Keynesianism for the rich and monetarism for the poor. While the IMF demands that developing countries raise interest rates and run budget surpluses in the face of economic downturn this is precisely the opposite approach currently taken by the United States government. Recently for the paltry sum of twenty billion euros the government of Romania had to genuflect before the IMF, World Bank, and the European Central Bank and agree to austerity measures. Meanwhile, far from the “periphery,” the United States is currently running a fiscal deficit equal to approximately 12% of GDP with interest rates virtually at zero. This moral authority projected from the wealthy west is analogous to that of a four hundred pound aerobics instructor ruthlessly whipping their class into shape.
Burling 2nd floor HF1713 .C5185 2008
More from Ha-Joon Chang
Rethinking Development Economics, 2003.
Burling 2nd Floor HD75 .R47 2003.
Kicking Away the Ladder Development: Strategy in Historical
Perspective, 2002.
Burling 2nd Floor HF1359 .C439 2002.
Thursday, April 30, 2009
Lord of the Flies
William Golding. Lord of the Flies. London/New York: Wideview/Perigee, 1954
Reviewed by T. Hatch
Stranded on an island by an unfortunate plane wreck a group of English boys, inspired by the leadership of a strapping redheaded lad named Jack Merridew, are able to avoid starvation and are eventually rescued by the British Navy. All the while the boys learn many valuable lessons about nature and at the same time enjoy a smashing good adventure. This despite the disinclination of some of their number (namely Ralph and Piggy) to shake off the shackles of ritual and custom enforced by bureaucracy.
Shortly after their forced arrival on the island the natural born bureaucrats Ralph and Piggy convene a meeting of the survivors. Ralph in his untrammeled quest for power hastily arranges an election. Cynically using democracy as a prop Ralph successfully demagogues his way to control on a platform of having fun and being rescued. Jack and his fellow choirboys are initially cowed into submission. But even peace loving choirboys can only endure so much.
Jack and his group in addition to suffering the vicissitudes of oppression are the ones who disproportionately contribute to the well-being of their fellow castaways. In addition to risking great bodily harm to himself hunting wild pigs that inhabit the island Jack selflessly pledges himself to protecting the younger boys. Operating under the best intelligence available at the time Jack and his brave lads are prepared to defend the island society against the encroachment of a monster.
It was only when Ralph and Piggy fail to respond to the threat of the monster and deprive the majority of the means of making fire that Jack and his band of patriots are compelled to act. In a preemptive raid on the camp of the Ralph clique Jack and the boys seize the means of their liberation. In response Ralph, and the oppressive apparatus under his control, attempts to steal the fire starting glasses. Unfortunately it was during this time that Simon and Piggy both adherents to the Ralph tendency met untimely deaths. In the instance of the former it was because he impersonated the monster and in the latter case it was as a result of the defense of the fire starting spectacles. Like the sailors at the Kronstadt garrison these two deaths were a “tragic necessity.”
With the righteous majority victorious the criminal Ralph was on the lamb. But justice is rarely complete and before the will of the people could be achieved Ralph was saved by the British Navy. This too was a result of Jack's selflessness as he had set the fire that the naval war ship spotted. On balance it was a total triumph that only two boys perished. Alls well that ends well.
Burling 3rd floor PR6013 .O35 L6x 1959
More by William Golding:
The Brass Butterfly: A Play in Three Acts
London: Faber and Faber, c1958.
Burling Library Vault PR6013.O35 B7 1958.
The Scorpion God: Three Short Novels
New York: Harcourt Brace Jovanovich [1972, c1971]
Burling Library 3rd Floor PR6013.O35 S36x 1972.
Close Quarters
New York: Farrar, Straus, Giroux, 1987.
Burling Library 3rd Floror PR6013.O35 C5 1987.
Darkness Visible
London: Faber and Faber, 1979.
Burling Library 3rd Floor PR6013.O35 D3x 1979.
The Double Tongue
New York: Farrar, Straus and Giroux, 1995.
Burling Library 3rd Floor PR6013.O35 D68 1995.
Fire Down Below
New York: Farrar Straus Giroux, 1989.
Burling Library 3rd Floor PR6013.O35 F5 1989.
Free Fall.
New York: Harcourt, Brace [1962, c1959]
Burling Library 3rd Floor PR6013.O35 F7x 1962.
The Hot Gates, nd Other Occasional Pieces
New York: Harcourt, Brace & World [1966, c1965]
Burling Library 3rd Floor PR6013.O35 H6 1966.
The Inheritors.
New York: Harcourt, Brace & World [1962, c1955]
Burling Library 3rd Floor PR6013.O35 I5x 1962.
A Moving Target
New York: Farrar, Straus, Giroux, 1984, c1983.
Burling Library 3rd Floor PR6013.O35 M6 1984.
The Paper Men
New York: Farrar, Straus, Giroux, 1984.
Burling Library 3rd Floor PR6013.O35 P3 1984.
The Pyramid
London: Faber, 1967.
Burling Library 3rd Floor PR6013.O35 P9 1967.
Rites of Passage
New York: Farrar, Straus, Giroux, 1980.
Burling Library 3rd Floor PR6013.O35 R5 1980.
Sometime, Never : Three Tales Of Imagination by William G. Golding, John Wyndham, Mervyn Peake.
New York: Ballantine Books [1967]
Burling Library 3rd Floor PR1309.S3 S65x 1967.
The Spire.
New York, Harcourt, Brace & World [1964]
Burling Library 3rd Floor PR6013.O35 S65 1964.
The Two Deaths of Christopher Martin.
New York, Harcourt, Brace [1957, c1956]
Burling Library 3rd Floor PR6013.O35 T8x 1956.
Reviewed by T. Hatch
Stranded on an island by an unfortunate plane wreck a group of English boys, inspired by the leadership of a strapping redheaded lad named Jack Merridew, are able to avoid starvation and are eventually rescued by the British Navy. All the while the boys learn many valuable lessons about nature and at the same time enjoy a smashing good adventure. This despite the disinclination of some of their number (namely Ralph and Piggy) to shake off the shackles of ritual and custom enforced by bureaucracy.
Shortly after their forced arrival on the island the natural born bureaucrats Ralph and Piggy convene a meeting of the survivors. Ralph in his untrammeled quest for power hastily arranges an election. Cynically using democracy as a prop Ralph successfully demagogues his way to control on a platform of having fun and being rescued. Jack and his fellow choirboys are initially cowed into submission. But even peace loving choirboys can only endure so much.
Jack and his group in addition to suffering the vicissitudes of oppression are the ones who disproportionately contribute to the well-being of their fellow castaways. In addition to risking great bodily harm to himself hunting wild pigs that inhabit the island Jack selflessly pledges himself to protecting the younger boys. Operating under the best intelligence available at the time Jack and his brave lads are prepared to defend the island society against the encroachment of a monster.
It was only when Ralph and Piggy fail to respond to the threat of the monster and deprive the majority of the means of making fire that Jack and his band of patriots are compelled to act. In a preemptive raid on the camp of the Ralph clique Jack and the boys seize the means of their liberation. In response Ralph, and the oppressive apparatus under his control, attempts to steal the fire starting glasses. Unfortunately it was during this time that Simon and Piggy both adherents to the Ralph tendency met untimely deaths. In the instance of the former it was because he impersonated the monster and in the latter case it was as a result of the defense of the fire starting spectacles. Like the sailors at the Kronstadt garrison these two deaths were a “tragic necessity.”
With the righteous majority victorious the criminal Ralph was on the lamb. But justice is rarely complete and before the will of the people could be achieved Ralph was saved by the British Navy. This too was a result of Jack's selflessness as he had set the fire that the naval war ship spotted. On balance it was a total triumph that only two boys perished. Alls well that ends well.
Burling 3rd floor PR6013 .O35 L6x 1959
More by William Golding:
The Brass Butterfly: A Play in Three Acts
London: Faber and Faber, c1958.
Burling Library Vault PR6013.O35 B7 1958.
The Scorpion God: Three Short Novels
New York: Harcourt Brace Jovanovich [1972, c1971]
Burling Library 3rd Floor PR6013.O35 S36x 1972.
Close Quarters
New York: Farrar, Straus, Giroux, 1987.
Burling Library 3rd Floror PR6013.O35 C5 1987.
Darkness Visible
London: Faber and Faber, 1979.
Burling Library 3rd Floor PR6013.O35 D3x 1979.
The Double Tongue
New York: Farrar, Straus and Giroux, 1995.
Burling Library 3rd Floor PR6013.O35 D68 1995.
Fire Down Below
New York: Farrar Straus Giroux, 1989.
Burling Library 3rd Floor PR6013.O35 F5 1989.
Free Fall.
New York: Harcourt, Brace [1962, c1959]
Burling Library 3rd Floor PR6013.O35 F7x 1962.
The Hot Gates, nd Other Occasional Pieces
New York: Harcourt, Brace & World [1966, c1965]
Burling Library 3rd Floor PR6013.O35 H6 1966.
The Inheritors.
New York: Harcourt, Brace & World [1962, c1955]
Burling Library 3rd Floor PR6013.O35 I5x 1962.
A Moving Target
New York: Farrar, Straus, Giroux, 1984, c1983.
Burling Library 3rd Floor PR6013.O35 M6 1984.
The Paper Men
New York: Farrar, Straus, Giroux, 1984.
Burling Library 3rd Floor PR6013.O35 P3 1984.
The Pyramid
London: Faber, 1967.
Burling Library 3rd Floor PR6013.O35 P9 1967.
Rites of Passage
New York: Farrar, Straus, Giroux, 1980.
Burling Library 3rd Floor PR6013.O35 R5 1980.
Sometime, Never : Three Tales Of Imagination by William G. Golding, John Wyndham, Mervyn Peake.
New York: Ballantine Books [1967]
Burling Library 3rd Floor PR1309.S3 S65x 1967.
The Spire.
New York, Harcourt, Brace & World [1964]
Burling Library 3rd Floor PR6013.O35 S65 1964.
The Two Deaths of Christopher Martin.
New York, Harcourt, Brace [1957, c1956]
Burling Library 3rd Floor PR6013.O35 T8x 1956.
The New Paradigm
Soros, George. The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. New York: Public Affairs, 2008.
Reviewed by T. Hatch
George Soros writing in early 2008 (well before the bottom fell out of the world's financial markets) is quite blunt in his assessment. Unlike the previous economic crises of the past twenty five years or so the current economic woes represent the end of an era. The sea change that has occurred means that the half-century long expansion of credit with the U.S. as the dominant power, and the dollar as the main reserve currency of the world, is essentially over. Alas, the lust for leverage does come with a cost.
An interesting aspect of this book is that Soros makes an argument for being taken seriously as a philosopher. He seeks to explain the current state of economic affairs as well as providing a new way forward through his theory of reflexivity. He argues that market participants operate within a system where two functions simultaneously occur. The cognitive function is about seeking to understand the world while the participating or manipulative function is about a guide to action. Further, these separate functions of thinking and reality are often directly opposed to each other; sometimes they interfere with each other. This interference is “reflexivity.”
Buttressing Soros' concept of reflexivity is the notion of radical fallibility. The basic premise is that we are bound to be wrong. As a practical matter economic actors habitually operate on the basis of imperfect knowledge and their actions have unintended consequences. Unlike rational expectation theory (the basis of the old paradigm which Soros seeks to supplant) the new paradigm does not set out to create an artificial world in which equilibrium prevails. It is this belief in the market equilibrium orthodoxy that “is directly responsible for the current turmoil.” Regulators abandoned their responsibilities reckoning that the market would correct itself. This hubris was a direct result of those who held that equilibrium theory is a scientific theory. The days are clearly numbered for equilibrium theory and its “political derivative” market fundamentalism.
The irony of this largely persuasive argument is that Soros, an acolyte of the philosopher Karl Popper, is positing a fundamentally Hegelian system. It is this “dialectic” of thought versus action which propelled Soros to the top of the hedge fund universe. Another obvious irony is that Popper was stridently anti theory. It is problematic whether Soros' argument rises to the level of a philosophical system but nonetheless it does seem valid.
Burling 2nd floor HB3722 .S673 2008
Other books by George Soros at Burling Library
The Age of Fallibility: The Consequences of the War on Terror.
New York : Public Affairs, c2006
Burling 2nd floor HN65 .S5873 2006
The Bubble of American Supremacy: The Costs of Bush's in Iraq
New York : Public Affairs, c2004
Burling 2nd floor E902 .S67x 2004
Open Society: Reforming Global Capitalism
New York : Public Affairs, c2000
Burling 2nd floor HB3722 .S67x 2000
George Soros on Globalization
New York : Public Affairs, c2002
Burling 2nd floor HF1359 .S65 2002
Reviewed by T. Hatch
George Soros writing in early 2008 (well before the bottom fell out of the world's financial markets) is quite blunt in his assessment. Unlike the previous economic crises of the past twenty five years or so the current economic woes represent the end of an era. The sea change that has occurred means that the half-century long expansion of credit with the U.S. as the dominant power, and the dollar as the main reserve currency of the world, is essentially over. Alas, the lust for leverage does come with a cost.
An interesting aspect of this book is that Soros makes an argument for being taken seriously as a philosopher. He seeks to explain the current state of economic affairs as well as providing a new way forward through his theory of reflexivity. He argues that market participants operate within a system where two functions simultaneously occur. The cognitive function is about seeking to understand the world while the participating or manipulative function is about a guide to action. Further, these separate functions of thinking and reality are often directly opposed to each other; sometimes they interfere with each other. This interference is “reflexivity.”
Buttressing Soros' concept of reflexivity is the notion of radical fallibility. The basic premise is that we are bound to be wrong. As a practical matter economic actors habitually operate on the basis of imperfect knowledge and their actions have unintended consequences. Unlike rational expectation theory (the basis of the old paradigm which Soros seeks to supplant) the new paradigm does not set out to create an artificial world in which equilibrium prevails. It is this belief in the market equilibrium orthodoxy that “is directly responsible for the current turmoil.” Regulators abandoned their responsibilities reckoning that the market would correct itself. This hubris was a direct result of those who held that equilibrium theory is a scientific theory. The days are clearly numbered for equilibrium theory and its “political derivative” market fundamentalism.
The irony of this largely persuasive argument is that Soros, an acolyte of the philosopher Karl Popper, is positing a fundamentally Hegelian system. It is this “dialectic” of thought versus action which propelled Soros to the top of the hedge fund universe. Another obvious irony is that Popper was stridently anti theory. It is problematic whether Soros' argument rises to the level of a philosophical system but nonetheless it does seem valid.
Burling 2nd floor HB3722 .S673 2008
Other books by George Soros at Burling Library
The Age of Fallibility: The Consequences of the War on Terror.
New York : Public Affairs, c2006
Burling 2nd floor HN65 .S5873 2006
The Bubble of American Supremacy: The Costs of Bush's in Iraq
New York : Public Affairs, c2004
Burling 2nd floor E902 .S67x 2004
Open Society: Reforming Global Capitalism
New York : Public Affairs, c2000
Burling 2nd floor HB3722 .S67x 2000
George Soros on Globalization
New York : Public Affairs, c2002
Burling 2nd floor HF1359 .S65 2002
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