Nurture, Then Prosper

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Ha-Joon Chang born in 1963 in South Korea, which at the time had a life expectancy of 53.
Grew up during Korea’s rapid industrialization under five-year plans, nationalization of the banking system, and military dictatorship—experiencing both double-digit growth rates and political repression.
Education and career:
- Earned a PhD at the University of Cambridge.
- Taught for 30-plus years at Cambridge before moving to SOAS University of London in 2022.
- Author of 17 books translated into 46 languages and sold over 3 million copies globally.
- Latest title: Edible Economics: A Hungry Economist Explains the World.
Motivations: pursued economics to reconcile simultaneous positive and negative societal changes witnessed during Korea’s transformation.

Core position: developing countries need an initial period of protectionism to nurture infant industries.
Historical grounding:
- Cites Alexander Hamilton’s 1791 report to Congress on manufactures as origin of the idea—advocates for tariffs, subsidies, infrastructure investment, banking development, government bond markets, and patent systems.
- Notes that the US was heavily protected for nearly a century; South Korea and other East Asian economies used heavy tariff protection successfully.
Key caveats:
- Tariffs and protection can be misused; success depends on disciplined recipients of state support.
- Protection should be a time-limited nurturing phase to allow industries to invest and raise productivity.

Industrial policy was common historically; became taboo mainly between 1980 and 2020.
Recent developments:
- The 2019 IMF working paper “The Return of the Policy That Shall Not Be Named” signaled renewed attention to industrial policy.
- Renewed industrial policy in advanced economies—especially the US—responds to deindustrialization and competition from China.
Assessment:
- Industrial policy is back in fashion, but many new programs (especially in the US) are at risk of being poorly designed; described as a “geriatric version of infant industry protection.”
- Points to continued covert government roles in technology development (example: technologies in the iPhone originating from US government–funded research; semiconductor funded by the US Navy; computer and internet developed by the Pentagon).

Stance on trade:
- No economic development without trade, but criticizes the free-trade absolutist position; advocates “managed trade.”
- Developing economies need protection for new industries and subsidies for export capabilities to earn foreign exchange for importing advanced machines and technologies.
Views on capitalism:
- Different varieties of capitalism exist; institutional choices reflect values and politics.
- Example: top US income tax rate was 91 percent between the late 1940s and mid-1960s—illustrating alternatives in economic management.
- Argues capitalism is flawed but preferable to alternatives; can be made more efficient, humane, and sustainable.

Broad definition of sustainability: environmental, economic, political, and social dimensions.
Policy priorities:
- Avoid exploitative labor practices, precarious jobs, and rapidly rising inequality to ensure political sustainability of growth.
- Foster mass economic literacy so citizens can meaningfully participate in democratic choice over economic policy.
- Combine protective measures for nascent industries with disciplined state support, export promotion, and investments in institutions (banking, infrastructure, patents).

Birth year: 1963
Life expectancy at birth (South Korea, early 1960s): 53
Academic tenure: taught for 30-plus years at Cambridge
Move to SOAS University of London: 2022
Books authored: 17
Languages translated into: 46
Copies sold globally: over 3 million
Hamilton’s report year: 1791
Period when industrial policy became taboo: between 1980 and 2020
IMF working paper year: 2019 (“The Return of the Policy That Shall Not Be Named”)
Top US income tax rate between the late 1940s and mid-1960s: 91 percent

Nurture, Then Prosper
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