Ha-Joon Chang at the Institute for Public Policy Research on 10 October 2011. |
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Born | October 7, 1963 [1] Seoul, South Korea[2] |
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Nationality | South Korean |
Institution | University of Cambridge |
Field | development economics |
Alma mater | Seoul National University, University of Cambridge |
Influences | Robert Rowthorn Friedrich List |
Influenced | Rafael Correa |
Awards | Gunnar Myrdal Prize 2003, Wassily Leontief Prize 2005 |
Information at IDEAS/RePEc |
Ha-Joon Chang (Korean: 장하준, Hanja: 張夏准, b. South Korea in 1963) is one of the leading heterodox economists and institutional economists specialising in development economics. Currently a Reader in the Political Economy of Development at the University of Cambridge, Chang is the author of several influential policy books, including 2002's Kicking Away the Ladder: Development Strategy in Historical Perspective.[3][4][5]
He has served as a consultant to the World Bank, the Asian Development Bank and the European Investment Bank as well as to Oxfam[6] and various United Nations agencies.[7] He is also a fellow at the Center for Economic and Policy Research[8] in Washington, D.C.
Chang is also known for being an important academic influence on the economist Rafael Correa, currently President of Ecuador.[9][10][11]
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After graduating from Seoul National University Department of Economics, he trained at the University of Cambridge. Chang's contribution to heterodox economics started while studying under Robert Rowthorn, a leading British Marxist economist,[12] with whom he worked on the elaboration of the theory of industrial policy which he described as a middle way between central planning and unrestrained free market. His work in this area is part of a broader approach to economics known as institutionalist political economy which places economic history and socio-political factors at the centre of the evolution of economic practices.
In his book Kicking Away the Ladder (which won the European Association for Evolutionary Political Economy's 2003 Gunnar Myrdal Prize), Chang argued that all major developed countries used interventionist economic policies in order to get rich and then tried to forbid other countries from doing similarly. The World Trade Organization, World Bank and International Monetary Fund come in for strong criticism from Chang for what he presents as "ladder-kicking" of this type, which he in turn portrays as the fundamental obstacle to poverty alleviation in the developing world. This and other work led to his being awarded the 2005 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought from the Global Development and Environment Institute (previous prize-winners include Amartya Sen, John Kenneth Galbraith, Herman Daly, Alice Amsden and Robert Wade).[13][14]
The book's methodology was criticized by Douglas Irwin, Professor of Economics at Dartmouth College and author of a 2011 study of the Smoot-Hawley tariff,[15] writing on the website of the Economic History Association:
Chang only looks at countries that developed during the nineteenth century and a small number of the policies they pursued. He did not examine countries that failed to develop in the nineteenth century and see if they pursued the same heterodox policies only more intensively. This is a poor scientific and historical method. Suppose a doctor studied people with long lives and found that some smoked tobacco, but did not study people with shorter lives to see if smoking was even more prevalent. Any conclusions drawn only from the observed relationship would be quite misleading.[16]
In contrast, Stanley Engerman, Professor of Economic History at Rochester University praised Chang's approach:
Ha-Joon Chang has examined a large body of historical material to reach some very interesting and important conclusions about institutions and economic development. Not only is the historical picture re-examined, but Chang uses this to argue the need for a changing attitude to the institutions desired in today's developing nations. Both as historical reinterpretation and policy advocacy, "Kicking Away the Ladder?" deserves a wide audience among economists, historians, and members of the policy establishment.[17]
Following up on the ideas of Kicking Away the Ladder, Chang published Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism in December 2008.[18] Chang countered Irwin´s criticisms by arguing that, while state interventionism sometimes produced economic failures, it had a better record than unregulated free market economies which very rarely succeeded in producing economic development. He cited evidence that GDP growth in developing countries had been higher prior to external pressures recommending deregulation and extended his analysis to what he presented as the failures of free trade to induce growth through privatisation and anti-inflationary policies. Chang's book won plaudits from Nobel prize winning economist Joseph Stiglitz but was criticised by economist William Easterly, who said that Chang used selective evidence in his book. Chang responded to Easterly's criticisms, asserting that Easterly misread his argument. Easterly in turn provided a counter-reply.[19][20]
Chang's latest book is 23 Things They Don't Tell You About Capitalism. Amongst many issues, he controversially claims that "the washing machine has changed society more than the Internet".[21]