Book review Literature Example | Topics and Well Written Essays - 2000 words

Book - Literature review Example He cogently makes the analogy that forcing developing countries to participate in free trade before the country is ready is akin to forcing his six year old child to get a job – it is a good short-term policy, in that money will be coming in, but a very poor long-term strategy, as the child’s growth will be stunted and he can never become a brain surgeon if he is forced to leave school at the age of six. His arguments are well-grounded, well-reasoned and difficult to refute. Chang begins by analyzing the developing countries in relationship to neo-liberal policies, and shows how the official history differs from the actual reality. According to Chang, the official history of neo-liberal policies is that these policies, which rely on laissez faire domestic policies, low barriers to the international flowing of goods, labour and capital; and â€Å"macroeconomic stability, both nationally and internationally, guaranteed by principles of sound money and balanced budgets† (Chang, 2008, p. 22) were adopted by developing and Third World countries in the 1980s, which led to the fall of communism in 1989, global economic integration, and a new â€Å"golden age of liberalism† (Chang, 2008, p. 23). Not included in this official history of neo-liberalism is any hint of coercion, nor any suggestion that these policies were not good for these developing countries. Chang contrasts this official story with what he calls â€Å"the real history of globalization† (Chang, 2008, p. 24). According to Chang, the real history is far different from the official story of globalism. The real history involves considerable coercion on the part of the neo-liberal countries, who are led by Great Britain and the United States. For instance, Britain, in the 1840s, used its might around the world to force weaker countries to accept low tariffs, while they themselves set their own tariffs high (Chang, 2008, p. 25). The coercion on these countries continue as the World Bank lends