Rethinking globalization: China's impact on the Washington consensus
The concept of "Kicking Away the Ladder" by Ha-Joon Chang is particularly relevant in the context of the ongoing debate between China and the United States on economic development and globalization.
According to Chang, developed countries, including the US, did not achieve economic success through the free-market and free-trade policies they now advocate for developing countries.
Instead, they used protectionism and interventionist policies to build their industries and economies.
This idea is central to China's critique of the US approach to globalization and economic development.
China argues that the US is being hypocritical, given its own history of protectionism and interventionism.
The US did not follow the same free-trade and free-market policies when it was developing, and now it is trying to "kick away the ladder" by denying other countries the opportunity to use similar policies.
For example, the US used tariffs to protect its manufacturing sector in the 19th century, while Germany and Japan used a combination of protectionism and state-led development strategies to promote their industries.
One specific example of China's approach to economic development is its use of tariffs and subsidies to promote its solar panel industry. China has become a global leader in the production of solar panels, and its policies have helped to drive down the cost of renewable energy worldwide.
In contrast, the US has been critical of China's use of subsidies and tariffs, arguing that they give Chinese companies an unfair advantage. However, China's approach to economic development is not without its challenges.
For instance, China's reliance on subsidies and tariffs has led to trade tensions with other countries, including the US. Additionally, China's focus on industrial policy has raised concerns about the environmental and social impacts of its economic development.
In Africa, there is a growing recognition of the need for a more nuanced approach to economic development that takes into account both the historical experiences of developed countries and the unique needs and circumstances of developing countries.
Many African countries are exploring alternative approaches to economic development, including South-South cooperation and regional
integration. The African Continental Free Trade Area (AfCFTA) is a major initiative aimed at promoting regional integration and economic development in Africa. By creating a single, large market for African countries, the AfCFTA provides a framework for African countries to cooperate on trade and investment and promote economic development through regional integration.
China's approach to economic development, which emphasizes state-led development and protectionism, has been influential in shaping Africa's economic policies. China's experience in promoting industrialization and structural transformation through targeted policies and investments has provided valuable lessons for African countries.
For example, Ethiopia's industrial parks and Rwanda's special economic zones are examples of innovative approaches to economic development that prioritize industrialization and job creation. These initiatives demonstrate the potential for African countries to develop their own economic policies and strategies rather than relying on external models or advice.
Given the influence of China's approach on Africa's economic policies, the implications of "Kicking Away the Ladder" are significant for other developing countries, including those in Africa.
If developed countries are indeed trying to deny developing countries the opportunity to use protectionist policies and other forms of government intervention, this could limit the ability of these countries to achieve economic growth and development.
For instance, countries like India and Brazil may face challenges in promoting their own industries and achieving economic growth if they are forced to adopt free-trade and free-market policies that benefit developed countries.
In the case of India, the country's textile industry has faced significant challenges in competing with imports from developed countries. If India is not allowed to use protectionist policies to promote its own industries, it may struggle to achieve economic growth and development.
Promoting a more equitable and inclusive approach to globalization may require rethinking the current approach to economic development.
One potential solution is for developed countries to recognize the importance of protectionism and interventionist policies in economic development and allow developing countries to use these policies to promote their own industries and achieve
economic growth.
Specifically, the World Trade Organization (WTO) could be reformed to allow developing countries to use protectionist policies to promote their own industries while ensuring that these policies do not harm other countries. For example, the WTO could establish clear guidelines for the use of tariffs and subsidies by developing countries and provide technical assistance to help these countries implement these policies effectively.
Additionally, the International Monetary Fund (IMF) could provide more support to developing countries to help them achieve economic stability and growth. For instance, the IMF could provide more flexible financing options for developing countries and offer technical assistance to help these countries develop their own economic policies. Other countries, such as those in the European Union, could also play a role in promoting a more equitable and inclusive approach to globalization.
For example, the EU could provide more support to developing countries through its development programs and work withthese countries to promote sustainable and inclusive economic growth.
In conclusion, the concept of "Kicking Away the Ladder" by Ha-Joon Chang provides valuable insights into the debate on economic development and globalization.
