Economic Development

Book Review

Kicking Away the Ladder-by Ha-joon Chang

First of all in this book represents the widely range of academic, theoretical and factual based data that contribute in the field of economic development. This book is very understandable and reader can easily read this book. This book is very easy and anyone can understand and also it is not important for anyone who can expert in the field of economic development to read this book. The author uses a historical perspective methods to up his argument with the empirical facts data and theoretical perspective to strong his positions although their positions someone related to a traditionalist approach due to this relation this book may create a positive impressions on the economic development scholars. He collect the data from the IMF and World Bank to make their arguments strong which against their actual positions that would be referred to a large amount of the literature.

Thisreview on the book called Kicking away the ladder-development strategy in the historical perspective written by the Ha-Joon Chang because he is a famous scholar and their academic study related to economic development. The main focus of author in this book on the areas of the economic development. The author used a historical perspective to describe the initial stages of development that how developed countries strengthen their economic development to achieve high level of development. The author demonstrate that the Now Developed Countries (NDCs). Applying a major policies for their development like ITT policies,in these policies industry, trade and technology are main focusing areas. When these policies apply by the developing countries as the same stages of development but they did not achieve high level of development in comparison with the now developed countries. The main objective of the author that he argues the economic development and the advancement of developed countries is not practicing due to the neoliberalism but this economic development is due to the intervention of government and their control, such as protectionism, subsidies and high tariffs that are more important for the economic growth rather than the neo-liberalism concept. The author says that the growth of economy is not due to the promoting of neoliberalism. Neoliberalism was pick up after when their economy succeeded and their goals was achieved.

In the first chapter author says that the important factor that are essential for the developing countries. The “good policies and institutions”, democratic government, free trade and effective institutions. These factors applying by the developed countries to strengthen their economic development. The another view of the author, he says that the initial stages of development countries could applied the principles of free trade and laissez-faire. When we study in the historical perspective the author point friedrich list, commonly known as the the father of “infant industry”. He argues that the analyzing of economic growth by the history-based method in the historical perspective the development of the United Kingdom and United States of America during the nineteenth century. The author points out that any country who achieved high level of development as same as the U.K and U.S.A to strong their positions. The author says that the any country wants same level of U.K and U.S.A who follow the principle by the book title kicking away the ladder that he climbed up.

At the beginning of second chapter, the discussions of the economic development on some way change. The author argues that the economic development of the developed countries and their analysis in the historical perspective how the developed countries like United Kingdom and United States promote and protect the “infant industry”. The advantage of infant industry is to bolster industry by removing the tariffs, government subsidized for imported the raw materials, plants and other researching method to promote the industry.

In the third chapter author discussedabout the democratic structures, free trade, free and fair elections and also talk about the good institutions, protection of property rights and efficient bureaucracy. The stabilization of financial institutions that the developed countries and others international organizations that are claim for the preconditions for the economic development of of the underdeveloped countries. The author argues that the claiming for preconditions for the improvement of the economic growth were initially and their improvement was continued in the early twentieth century. At last the author compares the per capita income of the richest countries in 1875with the current situation of now developing countries.

In the last chapter author summarize his ideas that he discussed about the ITT policies, infant industry, institutional standards development, good institutions, good policies and governance and also “economic development” that covered all his ideas on this major factor . The author says that the developed countries initially improve their economic performance when they “kicking away the ladder” and they climbed up.

At last in this book authors talks about the free and fair elections, democracy. In the second and third chapters author compares the developed and developing countries but the comparisons is very limited. Although the authors demonstrate the developing countries in detail due to the failing of liberal economic policies. Haa-Joon Chang observe that the great pressure on the developing countries from the developed world to adopting a good policies and the good institutions that seem to be necessary for the economic development. In the conclusion of this book the developed countries are attempting to “kicking away the ladder” which they climbed up and improve their economic development. The developing countries adopt the liberal economic policies and institutional standard due to this they become unsucceeded.