You’ve probably heard the standard lecture. Free markets are the only way to grow a country. Governments should just get out of the way. If a nation wants to get rich, it needs to open its borders, privatize its industries, and let the "invisible hand" do the heavy lifting. It sounds logical. It sounds scientific.
Ha-Joon Chang thinks it’s mostly a fairy tale.
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Chang isn't some fringe conspiracy theorist. He’s a world-renowned economist, formerly at Cambridge and now a professor at SOAS University of London. He has spent decades poking massive holes in the "neoliberal" orthodoxy that dominates the World Bank and the IMF. His argument is pretty simple but deeply disruptive: the wealthy countries of the West didn't actually follow the rules they now force on the rest of the world.
He calls it "Kicking Away the Ladder." Basically, rich countries used protectionism and government subsidies to get to the top, then turned around and told everyone else, "Hey, you shouldn't do that, it's bad for growth."
The "Bad Samaritans" and the Myth of the Free Market
If you pick up a textbook, it'll tell you that Britain and the US became economic powerhouses because of free trade. Ha-Joon Chang laughs at this. Seriously. In his book Bad Samaritans, he points out that Britain was one of the most protected economies in the world during its industrial rise. They used high tariffs to protect their textile industry from superior Indian products.
The US was even worse—or better, depending on how you look at it. For most of the 19th century and up until World War II, the United States had some of the highest import duties in the world. Abraham Lincoln wasn't just the Great Emancipator; he was a massive fan of protectionism. He knew that if the US just traded freely with Britain, it would stay an agricultural backwater forever.
Chang argues that "infant industry protection" is essential. Think of it like a kid. You don't send a five-year-old out to get a job and compete with adults. You protect them, educate them, and support them until they can hold their own. Why should we expect a brand-new car company in a developing nation to compete with Toyota on day one? It’s a ridiculous standard that ignores how history actually happened.
What Ha-Joon Chang Taught Us About Choice
Here is a weird thing most people don't realize about "free" markets: they aren't actually free.
Every market has rules. You can't sell drugs. You can't sell children. You can't sell votes. We accept these restrictions because of "morality" or "social standards." But 200 years ago, people fought against child labor laws using the exact same "free market" arguments we hear today. They said it would ruin the economy and infringe on the "freedom" of the child to work.
Chang’s point is that the boundaries of the market are politically determined. There is no "objective" free market. When economists say a certain regulation "distorts" the market, they are just making a political statement disguised as math. It’s a clever trick. By framing economics as a hard science like physics, they make it seem like there’s no room for debate.
But there is always room for debate.
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In one of his most famous works, 23 Things They Don't Tell You About Capitalism, Chang breaks down the stuff that makes mainstream economists twitch.
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Take the washing machine. You’d think the internet is the greatest invention of our time, right? Chang argues the washing machine changed the world more. By liberating women from hours of domestic labor, it completely reshaped the workforce and social structures. The internet? It just makes us do things faster. It's a provocative take, but it forces you to look at "value" differently.
Then there’s the myth of the "professional manager." We’re told that CEOs need these massive, eye-watering salaries because they are uniquely talented geniuses. Chang points out that most of these managers are actually interchangeable and that their "expertise" often leads to short-term profit-seeking that guts companies in the long run. He looks at General Motors or the 2008 financial crisis as prime examples. When you pay people to only care about next quarter's stock price, you shouldn't be surprised when the whole house of cards falls over eventually.
The Problem with Modern "Development"
Why are some countries still poor? The standard answer is usually "corruption" or "bad culture."
Chang thinks that’s a cop-out.
While corruption is obviously bad, many countries—like South Korea, where Chang is from—managed to grow incredibly fast while having significant levels of corruption. The difference? They had a "developmental state." The government directed credit, picked winning industries (like steel and electronics), and strictly controlled foreign investment.
If South Korea had listened to the "experts" in the 1960s, they would have stuck to exporting raw materials and low-end agricultural products. Instead, they built POSCO, which became one of the most efficient steel producers on the planet. The experts said it was a mistake. The experts were wrong.
This isn't to say that every government intervention works. History is littered with "white elephant" projects where governments wasted billions. But Chang’s nuance is key: the success isn't in "state vs. market," but in how the state and the market work together.
Economics as "Common Sense"
One of the most refreshing things about Ha-Joon Chang is his tone. He hates jargon. He loves talking about food. In his recent book Edible Economics, he uses stories about chocolate, anchovies, and garlic to explain complex trade theories.
He believes that 95% of economics is just common sense made to look complicated.
If you make it look like "expert-only" territory, the average person stops paying attention. And when the average person stops paying attention, the 1% get to write the rules. Chang wants to democratize economic knowledge. He wants you to realize that you have the right—and the duty—to challenge what the "experts" say about how your society should be run.
A Balanced View: Where Critics Disagree
It wouldn’t be fair to present Chang’s work without acknowledging the pushback.
Many mainstream economists argue that he downplays the benefits of trade liberalization in countries like China and India, which pulled hundreds of millions out of poverty by opening up. They argue that while the US and UK used protectionism in the 1800s, the world is much more integrated now. What worked in 1820 might not work in 2026.
Critics also point out that "picking winners" is extremely dangerous in countries with weak institutions. If a government is already struggling, giving them more power to control the economy might just lead to more "crony capitalism" rather than a South Korean-style miracle. It’s a fair point. Change isn't saying protectionism is a magic wand; he's saying it's a tool that shouldn't be banned from the toolbox.
Moving Beyond the "Neoliberal" Box
So, what do we actually do with this information?
Understanding Ha-Joon Chang’s work changes how you read the news. When you hear about a trade deal or a tax cut, you start asking: "Who does this actually benefit?" and "What did the rich countries do when they were in this position?"
Actionable Insights from Chang’s Philosophy:
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- Question the "Natural" Order: Whenever someone says "the market demands" something, remember that the market is a human invention. We can change the rules if the current ones aren't working for the majority.
- Invest in Capabilities: Wealth isn't just about money; it's about what a country (or a person) can do. Education and industrial capacity matter more than just having a lot of cash in the bank.
- Stop Chasing Short-Term Gains: The most successful economies and companies in history were built on long-term planning, not just hitting quarterly targets.
- Read the History, Not Just the Theory: If you want to know how to get rich, don't look at what rich people say; look at what they did to get there.
Ha-Joon Chang reminds us that economics is ultimately about people. It’s about how we choose to live together and share resources. It’s too important to be left to the "experts" alone.
To really grasp the weight of these ideas, start by looking at your own country’s history. Look at the industries that were subsidized or protected fifty years ago that are now global leaders. You’ll likely find that the "invisible hand" had quite a bit of help from a very visible government.
Practical Next Steps for Further Learning:
- Read "Kicking Away the Ladder": It is the foundational text for understanding his historical critique of free trade.
- Compare South Korea and Ghana: Study the economic trajectories of these two countries from 1960 to today. They started at similar levels of development but took vastly different paths regarding state intervention.
- Audit "Expert" Predictions: Look back at IMF or World Bank predictions for developing nations from ten years ago and see how many of their "free market" prescriptions actually led to the promised growth.
- Explore "Edible Economics": If you find standard business books boring, this is the entry point. It bridges the gap between daily life and global trade in a way that actually sticks.
The goal isn't necessarily to become an anti-capitalist. It’s to become a more informed participant in the capitalist system we actually have, rather than the one described in outdated textbooks.