One of the most prevalent trends of the 20th and 21st centuries has been the process of globalization. The effects of globalization have had great effects upon the field of economics, as increased interconnectedness globally has given rise to increasing international economic interaction. This interconnectedness brings with it an increased prevalence of neoliberal economic policies globally. The impacts of these policies upon developing economies in particular are a central area of analysis in both The World Is Flat and Bad Samaritans. However, the conclusions drawn by the authors are organized into antipodal camps of thought.
In The World Is Flat, Thomas Friedman posits that the effects of globalization have leveled the playing field of global …show more content…
Chang’s theory is that foreign intervention and establishment of neoliberal policies in developing economies are detrimental to economic growth and handicap the economic success of domestic business in favor of foreign investment. This is illustrated in three main conclusions throughout the book. First, the world’s most powerful economies, such as the United States and Great Britain, promote the narrative that they became prosperous through free market capitalist policies, but in reality became so through strong protectionist policies of state owned industry and high tariffs. Indeed, the United States followed isolationist policies from its creation until World War One. Second, Chang says that real economic development and growth must come slowly, as in order to experience true economic success domestic businesses must be nurtured and protected from stronger, already established competition in other countries that would drive younger businesses out of the market. This is diametrically opposed to Friedman’s position that countries must prepare their workers and businesses to compete within the rapidly evolving phenomenon of globalism. Chang holds up his own country of South Korea as an example, which was once a very poor economy that lacked any real presence in the global markets, but as a result of a highly protectionist approach and state intervention, developed into one of the premier technology hubs in the world
In The World Is Flat, Thomas Friedman posits that the effects of globalization have leveled the playing field of global …show more content…
Chang’s theory is that foreign intervention and establishment of neoliberal policies in developing economies are detrimental to economic growth and handicap the economic success of domestic business in favor of foreign investment. This is illustrated in three main conclusions throughout the book. First, the world’s most powerful economies, such as the United States and Great Britain, promote the narrative that they became prosperous through free market capitalist policies, but in reality became so through strong protectionist policies of state owned industry and high tariffs. Indeed, the United States followed isolationist policies from its creation until World War One. Second, Chang says that real economic development and growth must come slowly, as in order to experience true economic success domestic businesses must be nurtured and protected from stronger, already established competition in other countries that would drive younger businesses out of the market. This is diametrically opposed to Friedman’s position that countries must prepare their workers and businesses to compete within the rapidly evolving phenomenon of globalism. Chang holds up his own country of South Korea as an example, which was once a very poor economy that lacked any real presence in the global markets, but as a result of a highly protectionist approach and state intervention, developed into one of the premier technology hubs in the world