Adam Smith: Ideas that changed the world is a documentary by Johan Norberg. In his exploration of the
ideas that shaped the 21st Century trade, Norberg introduces Adam Smith, a man who lived in the 18th
Century and yet his revolutionary ideas changed and shaped the world. Considered as the “Father of
Modern Economics”, Smith was born during a time when trade was only made possible using horsedrawn carriages and sailing ships. However, foresaw how global trade can result in global prosperity.
Norberb further explores Smith’s ideas about free trade and how free trade currently drives the world’s
economy. As an example, the documentary highlights the activities of Maersk, a giant cargo company
and the important role it plays in the development and sustainment of global free trade.
The documentary then shifts its focus on how it all started: Smith’s birthplace in Edinburg, Scotland.
Smith was an important figure during his era. He was an economist, philosopher, an author, and largely
known as the “Father of Economics”. Smith published his ideas about the benefits of free trade in his
books, The Wealth of Nations’ and ‘The Theory of Moral Sentiments’. Although Smith is largely known
as an economist, many scholars believe that he was the first moral philosopher to have realized that
business is an enterprise and that all decisions, motives, and actions related to any business need careful
study and considerations. For Smith, wealth is primarily goods and services.
The presenter continues to talk with some distinguished Adam Smith Scholars and the world’s leading
companies to discover how Smith’s ideas continue to be relevant and drive today’s global economy.
However, the documentary also looks at Smith’s believe in whether a government should take a lead in
the management of global economies, or should it be left to market forces? Smith believes that market
forces have the ability to alleviate public poverty.
To further illustrate Smith’s ideas, the documentary focuses on the development of Hongkong from a
poor country into one of the leading cities in the world. Hongkong doesn’t have any natural resources
except for its beautiful harbor and its hard-working people. In 1960s, Hongkong was riddled with
poverty and home to many refugees. But things changed when Sir John Coperthwaite became
Hongkong’s financial Secretary from 1961 to 1971. Coperthwaithe created a system where people’s
individual rights were respected as well as creating a less complicated and strict tax system.
Coperthwaite’s vision a having a peaceful Hongkong, with easy taxes, and tolerable administration of
justice resulted in a prosperous city which attracted investors and visitors; thus, creating opportunities
for earning money. Meanwhile, China’s stringent government policies resulted n poverty and further
crime which according to Smith scholars proves socialism doesn’t work. Seeing the prosperity enjoyed
by Hongkong, China changed its strategy and became more practical and relaxed.
According to Smith scholars, change can happen fast with the right policies in place. In addition, they
believe that the best results can be achieved by allowing your team members to be autonomous and
authentic.
Smith advocates believe that one main causes of corruption in most governments is their complex
structures which is always centralized. The structures should be simplified, and authority and power
should be well-distributed.