The Super-Rich and Us

Jacques Peretti investigates how the super-rich are transforming Britain. In part one, he looks at why the wealthy were drawn to Britain and meets the super-rich themselves.

Featuring Ha-Joon Chang, Thomas Piketty, and Richard Brooks.

Watch episode 2 here, which features David Graeber, among others.

Ha-Joon Chang on Economics

In the following video Ha-Joon Chang gives a lecture on his latest book, which is an introduction to economics, titled Economics: The User’s Guide. As an introductory text it covers all the main areas of the field. Rather usefully at the end of each chapter it has a further reading section. This gives an idea of the basic books the Cambridge professor would recommend to cover the whole discipline of economics. The books from this section have been compiled into a list titled Ha-Joon Chang’s Introduction to Economics Book List.

If you could kick out Mubarak, I’m sure that you can do a lot more!

Ha-Joon Chang: In Conversation

The renowned Cambridge Economist, author of the classic work Kicking Away the Ladder: Development Strategy in Historical Perspective was interviewed in May by Serene Richards, a freelance journalist and Universty of London LLM candidate in International Economic Law Justice and Development.

Nestled amongst the leafy streets of Cambridge is the University’s Economics faculty. This, unassuming, 1960s building, plays host to one of the world’s leading development economists: Ha-Joon Chang. An international best selling author, Chang is no stranger to controversy, he is known for his critical analysis of economic orthodoxy and draws upon economic history in much of his work. His most recent book 23 Things They Don’t Tell You About Capitalism gallantly contributes to the ongoing critique surrounding our global economic system. In 2005 the South Korean born economist was awarded the Wassily Leontief prize for Advancing the Frontier of Economic Thought for his book “Kicking Away the Ladder”. I enter his office, quaint and amassed with books. His manner, affable and upbeat, we begin.

You co-wrote a paper entitled “Industrial Policy and the Role of the State in Egypt” which outlined an alternative development policy, comparing Egypt to the East Asian experience, can you tell us a little about your vision at the time?

“We wrote it in 1995/4, it was a time when they [the IMF] were accelerating liberalization and privatization. We felt that in a relatively closed economy like what Egypt was before, liberalizing and opening can bring some benefits because you have more competition and foreign exchanges and so on. But we were worried that this brought, at best, short-term benefits. You really need a long-term strategy to take your country to another level. Back in the early 60s Korea and Egypt had similar levels of income, two of the poorest countries in the world. Today Egypt still is a poor country, with a per capita income of $2000 compared to South Korea’s $20,000. So, what happened during those 50 years that made such a huge a difference is an important question. Of course, there were problems with the earlier economic strategy under Nasser. In my view, it was too closed – but, liberalising everything without any strategy and privatising, without any clear view of what should be done was not a very promising strategy. Unfortunately we have been proven right in that sense because they’ve done a lot of things since the 90s, but where did it end up?”

Continue reading “If you could kick out Mubarak, I’m sure that you can do a lot more!”

23 Things They Don’t Tell You About Capitalism

In the latest issue of Vanity Fair, Joseph Stiglitz writes:

The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow. […]

The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles, but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this is something that the top 1 percent eventually do learn. Too late.

One of the reasons this state of affairs obtains, argues Ha-Joon Chang, is because of the chimera of a ‘free market.’

Continue reading “23 Things They Don’t Tell You About Capitalism”