Books That Are Noteworthy

Books that are noteworthy

Mark M. Michalski

Please note that only the first book, Riddles Authors pose a number of interesting and of economic growth, is already available in intriguing questions such as for example these: English, while the other two books are still ▪▪ Why did Australia break away economically only in Polish language. from New Zealand? ▪▪ Why did Austria (almost) catch up with Riddles of economic growth. Switzerland? Driving forces and crises – ▪▪ Why is Mexico much poorer than Spain? comparative analysis. Leszek ▪▪ Why has Venezuela become poorer than Balcerowicz and Andrew Rzońca. Chile? ▪▪ Why does Puerto Rico resemble the former C.H. Beck. 978-83-255-3055-6. GDR? Late in 2014, just a few weeks before Christ- ▪▪ Why did „communist” China overtake „capi- mas I attended a conference in New York. As talist” India? “luck” would have it that day professor Bal- ▪▪ Why has Pakistan developed more slowly cerowicz was at the World Bank in Washing- than Indonesia? ton DC, promoting his new book and shar- Authors then attempt to answer (or at times ing in the Riddles of economic growth. Many just hint some possible causes, or explanations development professionals, policy experts for) these and similar questions while address- and other government officials attended the ing a much broader question: where do the event. I had the pleasure and the privilege of differences in economic growth come from? It translating the very first draft of its introduc- is an important issue to be analyzed in a dif- tory chapter. Before it appeared as a book, its ferent way because its authors systematically excerpt appeared in the WICS Journal (The assess the overall development and the com- WICS morphed into the Business and Public plexity of effects of historical and economic Administration Studies since then). crises. The deeper causes of earlier recessions The book launch led by Balcerowicz was that were determined by the institutional con- filled with fascinating stories and anecdotes. ditions, also affected economic growth and its Leszek’s talk was informative, inspiring and performance. The authors assess the causes of lively. With many questions following – and low labor and capital expenditures, low sav- from what I am told – participants were in- ing rates, structural adjustments and many spired and impressed with the book’s pro- other phenomena. They also compare various vocative, yet highly insightful message. Per- pairs of selected countries, asses and contrast haps it is because the message appears in the their findings with highly successful countries, form of probing questions: how is it that after coming up with many surprising and intrigu- so many decades of studies and research we ing findings. still know so little about what determines eco- The book attempts to elucidate the complex nomic growth? Also, why do some economies causes of the differences in economic perfor- perform much better (you might say: against mance. The issue is important not only from their odds) than other countries? an analytical point of view. It is also a practical

© Business and Public Administration Studies, 2015, Vol. 9, No. 1 27 Published by the Washington Institute of China Studies. All rights reserved. Books that are noteworthy question. Especially now in the early 21st cen- not only those in academia. However, the stu- tury, when we are flooded with information dents of economics and the academicians will and starving for true knowledge. Economic be the main target of this book. „ – said profes- growth is the most concise method and com- sor Stanislaw Gomulka. prehensive way to effectively rescue societies from poverty and increase standards of living. Discovering freedom. Against As long as the economy grows then income of the enslavement of minds. Leszek its members grows as well. For example, as au- Balcerowicz. Profit. 978-83-7785- thors point out, income of the poorest one-fifth 061-9. of South Korea – one of the economic tigers of the world – is approximately four times higher This. 1027-page innovatively and uniquely than the income of the most affluent one-fifth compiled „bible freedom” is highly recom- on the Korean peninsula prior to the Korean mended by the Civic Development Forum War and it is seven times higher than income (FOR). „Discovering freedom. Against the earned by the average North Korean. In the enslavement of minds” is a collection of fifty book, readers may encounter more similar works of libertarian thinkers well known in and surprising examples of speedy economic most of the western democracies. It was col- growth and examples to the contrary. lected and introduced at length, with more Without economic growth, the only mech- than eighty pages of personal reflections by anism enabling some to become richer is for Leszek Balcerowicz. Among the key authors others to become poorer. It is the well known and writers are classics of philosophy (Adam “zero-sum game” proposition. When you are Smith, David Hume, John Stuart Mill and slicing the income pie, it may lead to a reduc- many other great thinkers), as well as the great tion in its size. There are many countries in the philosophers (Polanyi, or one of Poland’s most world who suffer significantly lower per capita brilliant thinkers – Leszek Kolakowski). Even incomes than they did several decades before. some controversial politicians find their place Representatives of an influential school of there, such as Janusz Korwin-Mikke. In his thought – known as growth theory – proxi- lengthy introduction Balcerowicz writes: “An- mate causes of economic growth to accumula- ti-freedom pressures that exist in a democ- tion of capital, employment and productivity racy, of course, do not constitute a departure (labor and capital). This theory does not pro- from democracy and civil liberties. But the de- vide a complete explanation. It is because the fense of liberty in the context of risk of democ- proximate causes require explanation them- racy and civil society. This requires a constant selves. Because of this weakness in the above systematic and professional activities, because paradigm, more and more research looks for these pressures never cease. Thus, the struggle deeper causes of the differences in the rate for freedom will never end”. of growth in and among countries. The stud- One may travel with Leszek Balcerowicz ies usually deal with institutions and their from classical philosophy (Mill, Locke, Pop- systems. The research on economic growth is per), with some of the greatest minds of the interceded by other work dealing with theo- previous era (Tocqueville, Bastiat, Constant), retical micro and macro-economy as well as to the great economists of our times (Hayek, political economy. The book is highly regarded Mises, Friedman), historians (Pipes). We get and endorsed by many economists and policy a glimpse of the key makers of libertarianism practitioners. „Overall, I think the book is one (Nozick) and back to where it all began: Adam of the most interesting ones published in Po- Smith. We read lots about human nature. We land in recent years. (...) It is easy to read and find out why the greatest enemy of democracy therefore may also be of interest to lay people, is just the very nature of man, understand-

28 © Business and Public Administration Studies, 2015, Vol. 9, No. 1 Books that are noteworthy ing therefore what is inside of each and every to fight” is a very different story. This book person. What does democracy really demand shows him „behind the scenes” from child- and consist of? What really threatens our loss hood through his personal and professional of freedom? What do we really know and un- life. The lively stories and anecdotes show his derstand about markets? strong character depicted through such exam- Anyone who questions the direction our ples as early fights with peers in the yard. His modern world is going in, or anyone who feels biographical narrative reveals what ignited that our recent economic, social and politi- his strong emotions, experiences and unrest. cal history makes little sense should read this Life in government, in politics and brokering collection of classical essays. One has to read tough reforms showed that Leszek Balcerow- „Discovering freedom” systematically and icz truly had to have a tough skin to endure slowly. Freedom, is the most often misunder- and to remain firmly convinced of his rational stood word that man knows. We are familiar decisions, because behind his huge economic with the cliché that „with great freedom come knowledge hinged a fragile future of Poland’s great responsibility.” We feel free when we be- successful reforms. His book „You have to come aware of taking responsible steps and re- fight” is the confirmation of how right he was. alizing that these are at once sensible and/or liberating at the same time. And so, everyone Leszek Balcerowicz (b. 1947) – economist, should read this book. It is wise, demanding, Professor of School of Economics in Warsaw and inspiring. and an MBA from St. John’s University in New York. He is the author of economic reforms in One has to fight – Who really Poland started after the fall of communism is Leszek Balcerowicz?. in 1989. He was Deputy Prime Minister and Marta Stremecka and Leszek Minister of Finance in the first non-commu- Balcerowicz. Czerwone i Czarne. nist Polish government after World War II (1989-1991 and also served in 1997-2000). 978-83-7700-160-8. From 2000 to 2007 he was a President of the What was his childhood like? What was his Polish National Bank (NBP). He holds honor- life in the era of Polish economic transforma- ary doctorates from more than 20 universities. tion? The biographical narrative „You have to He is the author of over 100 publications on fight”, or a bit impersonally: “One has to fight” economic issues. For his major contributions is an interview with Martha Stremecka. Here, to the economic transformation in Poland, he Leszek Balcerowicz reveals many previously was awarded the Order of the White Eagle – hidden details of his private life. After his re- the highest Polish state distinction. In 2007, cent opera magna: „Discovering freedom, (re- he founded the Foundation for Civic Develop- leased in 2013) came another book: „Against ment Forum FOR, where he is the Chairman slavery of minds”. „One has to fight” is the of the Council. most recent book by Leszek Balcerowicz. This time, he talks about his life from childhood to adulthood, revealing anxieties and emotions. Leszek Balcerowicz might be considered one of the most interesting political and intellec- tual actors of the last twenty-five years. He is the author and architect of the most difficult economic transition, having served as a Dep- uty Prime Minister in Tadeusz Mazowiecki first non-communist government. „One has