Mercantilism Reconsidered
Adam Smith and his liberal followers decisively won the intellectual battle against mercantilist models of capitalism. But recent history tells a more ambiguous story: growth champions such as Japan in the 1950’s and 1960’s, South Korea from the 1960’s to the 1980’s, and China since the early 1980’s have all had activist governments collaborating closely with large business.
CAMBRIDGE – A businessman walks into a government minister’s office and says he needs help. What should the minister do? Invite him in for a cup of coffee and ask how the government can be of help? Or throw him out, on the principle that government should not be handing out favors to business?
CAMBRIDGE – A businessman walks into a government minister’s office and says he needs help. What should the minister do? Invite him in for a cup of coffee and ask how the government can be of help? Or throw him out, on the principle that government should not be handing out favors to business?