As developed by political scientist Herbert Simon, the concept of bounded rationality refers to how the complexity of the problems people face limits their ability to act rationally. Ha-Joon Chang points to how bounded rationality undermines the validity of models based on the assumption that individuals are rational, self-interested agents, which is a fundamental precept of free-market economics.

In this economic system, capital, or the means by which goods are produced, is owned and operated privately. Chang generally supports capitalism as the most viable economic framework but suggests that outcomes can be improved through well-crafted government intervention.

A nation with a relatively weak economy and a lower standard of living than is found in the world’s rich countries is a developing country. Throughout the text, Chang explores the factors contributing to the gap between rich and poor countries, dispelling various myths along the way.