This book is a part of a broad study about Confucianism and its implications for modernization of the Confucian regions (covering Mainland China, Taiwan, Hong Kong, Macao, Japan, South Korea, North Korea, Vietnam and Singapore). The purpose of this book is to compare the ethical, social and economic principles advocated by Adam Smith and Confucius. Adam Smith is the most influential thinker in developed economies in modern times. Confucius was the most influential thinker in the Confucian regions (except Singapore) before the West became influential in these regions. It is important to note that among the Confucian regions only Singapore under Lee Kuan Yew has explicitly admired Confucius after the Second World War. The book shows that it is important to compare the two great thinkers in order to understand whether or not Westernization of the Confucian regions is sustainable and whether or not there will be "clashes of civilizations" between the Confucian regions and the West. The reader may also see how China has made fun of Confucius in the last one hundred fifty years and why the world has made fun of China during the same period of time.