By Sa Eun-young
Staff Reporter
Korean economist Chang Ha-joon presents a convincing argument in his book ``Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism.'' The idea that free trade benefits all is taken advantage of by rich and powerful countries with developing nations losing out in the deal.
According to Noam Chomsky, the study dealt with in this book should be titled ``economics in the real world,'' which confirms the solid historical facts and cases the author has based his research and information on. He presents the research in an engaging way, unraveling the points to this issue in such a manner that anybody, even someone who knows absolutely nothing about economics, can understand his fresh and innovative argument.
Chang goes back to the late 19th century, to the early cases of free trade. Even in the early stages of globalization, the choice for free trade was never made by the weaker side, but was a result of force, as was the case of Britain and China during the Opium War (1839-42).
Things have improved a little over the years, however, similar yet subtle manipulation of power is present even today. Proxies such as the World Bank, the International Monetary Fund (IMF) and the World Trade Organization (WTO), may appear to exist to profit all member countries, but Chang says that they are actually run and controlled by the powerful nations _ the bad Samaritans _ who are busy seeking the best for themselves.
He also argues that there are loopholes in the idea that struggling nations need free trade for economic prosperity. He points out that two of the most powerful nations in the world, the U.S. and Britain, in fact had the tightest protectionist policies.
One of the clear examples that Chang uses to present his argument is the comparison he makes between his six-year-old son and developing economies. He says just as a young child's future is stumped without proper schooling, care and investment from his parents, a developing country needs sufficient time to develop technology that can shoulder international competition. The author is not saying that international trade is unimportant, but rather emphasizes that a balanced policy of protectionism and open trade is needed in developing economies according to their needs and capability.