How Nations Escape Poverty: Vietnam, Poland, and the Origins of Prosperity

by Rainer Zitelmann

Overview

A rigorous defense of free markets and open enterprise in the tradition of Adam Smith.

During the 20th century, Vietnam and Poland were both victims not only of devastating wars, but also of socialist planned economies that destroyed whatever war hadn't already. In 1990, Vietnam was still one of the poorest countries in the world, while Poland was one of the poorest in Europe. But in the three decades since then, both countries have drastically improved their citizens' standards of living and escaped the vicious cycle of national poverty. 

In this book Rainer Zitelmann identifies the reasons behind the sensational growth of both nations' economies, drawing out the lessons that other countries can learn from these two success stories. To explain the source of their success, he returns to Adam Smith's 1776 treatise, The Wealth of Nations: the only way to overcome poverty is through economic growth, Smith wrote, and economic freedom is the crucial prerequisite from such growth. 

Developments over the past 250 years have proved Smith right. The market economy has led to a global decline in poverty unparalleled in human history. Compare this to the fifty years of "development aid" in Africa that have only entrenched the status quo, and it is clear which approach yields superior results. Despite these strides, almost ten percent of the world's population still lives in extreme poverty. So, what measures actually help to alleviate poverty today? Through a wealth of data and stories from the everyday lives of Polish and Vietnamese people who experienced reforms, Zitelmann demonstrates the persistent relevance of Smith's ideas to economic flourishing in the 21st century. 

Product Details

ISBN-13:	9781641773959
Publisher:	Encounter Books
Publication date:	03/26/2024
Pages:	240
Sales rank:	465,845
Product dimensions:	6.00(w) x 9.00(h) x (d)
Age Range:	18 Years

About the Author

Rainer Zitelmann (1957) studied history and political science and graduated with distinction. In 1986, he was awarded a doctorate in philosophy for his thesis Hitler’s National Socialism. The study, which was awarded the grade “summa cum laude,” received worldwide attention and recognition. From 1987 to 1992, Zitelmann worked at the Central Institute for Social Science Research at the Free University of Berlin. He then became editor in chief of Ullstein-Propyläen publishing house, at that time Germany’s third-largest publishing group, and headed various departments of the German daily newspaper Die Welt. In 2000, he set up his own business, Dr. ZitelmannPB, GmbH, which has since become leading PR agency for real estate companies in Germany. He sold the business in 2016. In 2016, Zitelmann was awarded his second doctorate, this time in sociology, with his thesis on the psychology of the super-rich, The Wealth Elite. Zitelmann has written and edited a total of 28 books, which have achieved substantial success in more than 30 languages around the world. He is a much sought-after guest speaker in Asia, the United States, South America and Europe. Over the last few years, he has written articles and given interviews to many of the world’s leading media outlets, including the Wall Street Journal, the Times, the Daily Telegraph, Forbes, Newsweek, Le Monde, Corriere della Serra, Frankfurter Allgemeine Zeitung, Der Spiegel, Neue Zürcher Zeitung, and numerous media in Asia and Latin America.

Editorial Reviews

"How Nations Escape Poverty is a magnificent book in which Zitelmann explains in a sublime manner why freedom is the path to escape from poverty. This is a lesson that politicians need to learn but, above all, Zitelmann's insights must be taken into account by the citizens of those countries that have been devastated by populism, such as Argentina today. The population needs to learn urgently about this matter and, by reading a book like this, citizens will surely demand new reforms from their representatives that will ultimately lead them to prosperity and distance their country from the path of decline. I absolutely recommend reading this book. In it, readers will find case studies, graphs and engaging testimonies that will enlighten those unversed in economics and make them familiar with the reform cycle that led Vietnam and Poland to embrace the ideas of liberty. Of course, this will enable those who read this book to benefit from those insights." 

—Manuel Adorni Economist spokesman for the Government of Argentina under President Javier Milei 

"The German social scientist and entrepreneur Rainer Zitelmann, in How Nations Escape Poverty: Vietnam, Poland and the Origins of Prosperity, relates what happens when poor nations with onerous planned economies scrap their plans and open themselves up to trade...the recent histories of both Vietnam and Poland teach the same lesson: that a nation can do wonders when it stops trying to manage itself into perfection and shield its citizens from risk."

—The Wall Street Journal

"Zitelmann's thesis is unashamedly pro-capitalist. His argument is that Poland and Vietnam's successes owe themselves to economic growth focused on wealth creation and enterprise, and the reformers that encouraged it... This is a novel read that brings a different perspective on how the tenets of capitalism are viewed by people in emerging nations. It is also a useful insight into two fascinating countries that are set to play an important part in the 21st century." 

—Financial Times 

“Read this brilliant, highly readable, inspiring book before the woke cancel culture hears about it! The astonishing tales told here about the miraculous transformation of two seemingly disparate nations—Poland and Vietnam—from socialist sinkholes of misery into vibrant, prosperous, opportunity-rich economies resoundingly reaffirm the truth of the positive, inclusive power of free markets. This book couldn’t be more timely in today’s troubled world.”

—Steve Forbes, editor-in-chief, Forbes

 

“Many great libertarian thinkers were economists or philosophers. Zitelmann is a historian and sociologist. He does not argue theoretically, but empirically. In his book, he shows that development aid and redistribution do not eliminate poverty, but private property, entrepreneurship, and capitalism do.”

—John Mackey, co-founder, Whole Foods Markets

 

“Anti-capitalists believe that the economy is a zero-sum game. They want to help the poor by taking money away from the rich. They want to help poor countries through development aid. Based on scientific studies, Zitelmann shows that this concept has never worked. But as soon as people are given more economic freedom, their standard of living improves dramatically, as Zitelmann demonstrates through the examples of Poland and Vietnam. Capitalism is so effective that even a few drops of it can work wonders. What miracles would only be possible with real capitalism?”

—Jennifer Grossman, CEO, Atlas Society

 

“Public intellectuals in relatively free economies have crippled poor nations struggling to rebuild after years of socialism by lying to the world about how jobs and wealth are created. A powerful and needed antidote to the lies of the self-hating academics is Dr. Rainer Zitelmann's new book examining and highlighting the success of Poland and Vietnam emerging from imposed economic statism. The model that built the modern West can also rebuild those nations enslaved during the Cold War: property rights, low tax and regulatory regimes, open trade and limited government.”

—Grover Norquist, president of Americans for Tax Reform

 

“One of the most exciting developments over the last quarter-century has been the revival of social and economic freedom in both Eastern Europe and Asia. Zitelmann’s case studies show how they did it, and what other countries need to do to enjoy a similar revival.”

—Eamonn Butler, director, the Adam Smith Institute, London

 

“Imparting surprises on every page, even for sophisticated theorists of capitalism, Zitelmann’s book makes a major new contribution to the wealth of nations.” 

—George Gilder, author of Wealth and Poverty

 

“This book reminds us with unimpeachable data that economic freedom is the key to prosperity and socialism is the best path to despair. The paradox is why so many young people are taught and believe exactly the opposite. We might as well be teaching them that the sun rises in the west and sets in the east.”

—Stephen Moore, senior economist, The Heritage Foundation

 

“Rainer Zitelmann has been one of the most prolific and effective defenders of free enterprise for many years. In his new book, Zitelmann details the political and economic reforms that turned once poor and stagnating communist basket cases of Vietnam and Poland into fast-growing economies whose people enjoy much improved standards of living. It should be read by would-be reformers everywhere.”

—Marian Tupy, senior fellow, the Cato Institute, and founder of HumanProgress.org

 

“Capitalism has lacked a unifying public figure since Milton Friedman left the building in 2006. Now, there is, at long last, a worthy candidate for Friedman’s rightful successor. I praise Dr. Rainer Zitelmann as the reigning public intellectual champion of capitalism. With his book How Nations Escape Poverty, he proves once again that as a historian and sociologist he has followed in the footsteps of the greatest freedom thinkers.”

—Ralph Benko, co-author of The Capitalist Manifesto and co-founder and chairman of the Capitalist League

 

“Billionaires usually get a bad press, but Rainer Zitelmann shows in his outstanding new book that economic growth takes off when free markets permit them to create new products and encourage other people to emulate them. As Adam Smith long ago argued, economic growth is the key to ending poverty. Zitelmann documents his thesis to the hilt through detailed accounts of the economies of Poland and Vietnam. The book is a magnificent achievement.”

—David Gordon, senior fellow, Ludwig von Mises Institute, and editor of the Journal of Libertarian Studies

 

A quick, innovative, and gripping read... and, given the current political season, we find ourselves in the middle of, it could not be timelier. This is a truly international offering.

—Polish American Journal

 

 

From the Publisher