As the world entered the turbulent 1960s, two men, half a world apart, one a doctor and the other a classicist, both foreigners far from home, were charged with shaping the economic strategy of their adopted countries. They held a common objective. Both were determined to create a better world. More than half a century later, their principles still drive the policies of those economies today. Their proposed solutions could not have been more different.
One, Che Guevara, is well known as a revolutionary. He is less well known as the key architect of Cuba’s communist economic system. He was as serious about economics and its effect on society as he was about revolutionary warfare. The other, John Cowperthwaite, is largely unknown today. And yet he was fundamental to establishing Hong Kong’s unique laissez-faire economic policy.
These two men are arguably the originators of the most significant natural economic experiment of the last century, pitting the free-market model of Hong Kong against the state interventionism in Cuba. Each suite of policies has been pursued faithfully for over half a century with remarkable results that have lessons for us all.
REVIEWSThe message is startling. Over the last sixty years, Cuba has been a pure socialist economy and Hong Kong a pure capitalist one. Over this period Cuba’s GDP per capita has doubled. That growth may sound okay but over 60 years it is actually pretty pitiful. Strikingly, over the same period Hong Kong’s per capita GDP has risen fourteen-fold.
Roger Bootle, Chairman Capital Economics A Tale of Two Economies, provides a thorough and penetrating analysis of why Hong Kong has thrived for the last sixty years where Cuba has stagnated. It’s a powerful lesson of how state involvement must be targeted carefully and sparingly if human progress is not to be damaged. The story is an enjoyable read, told through the lens of the architects of the two economies – the unsung hero Sir John Cowperthwaite and the misguided icon Che Guevara. It’s a story that all economic policy makers should know, and a story that will enlighten students of economics and human progress.
Marian Tupy, HumanProgress.orgThis book compares Cowperthwaite with “Che” Guevara. In spite of geography, “each came to represent the beacon of a peculiar political theory in the 1960s and after: Hong Kong, what Milton Friedman and many others called an experiment in ‘free enterprise and free markets’; and Cuba, the last bastion of socialism after the Soviet Union faltered and China reformed. Monnery’s book is a fun, engaging read. I highly recommend him, if you are searching for a book to persuade a friend of the benefits of free enterprise.
Alberto Mingardi, The Library of Economics and LibertyMonnery wrote the excellent (2017) Architect of Prosperity about Sir John Cowperthwaite’s shaping of colonial Hong Kong. Who he, you might ask? Indeed, that was part of the interest – an unknown who had laid the foundations for modern Hong Kong’s role as a financial and trading centre. This new book is, intriguingly, a compare and contrast of Cowperthwaite and Che Guevara, or rather an assessment of the natural experiment of two polar opposite economic systems, both intended to deliver the same aim of economic development and lasting prosperity.
Diane Coyle, Professor of Public Policy, University of CambridgeNever mind the politicians, every journalist and opinion former should read this book. A brilliant book, characterised by objectivity and rigour. Fabulous.
Steve Baker MP, Minister of State for Northern IrelandA superb comparison of the two men’s radically different philosophies, which set the economic destinies of two societies. We can learn much from that experiment.
George C. Leef, James Martin Center 
