Of miracles and models: The rise and decline of the developmental state in South Korea

Abstract

This article argues that the South Korean economic 'miracle' was based on the ability of the state to implement a strongly developmental policy. The state was able to do so because, for a time, it was highly insulated from demands from social classes which might have diverted it from the objective of industrialisation. This insulation, or 'relative state autonomy', derived from an historical trajectory which left the state in an unusually dominant position in relation to these classes. Domestic dominance was one factor enabling the state to insert the South Korean economy into world markets in a more advantageous position than would otherwise have been possible. However, its very success in industrialising the country strengthened various class forces, whose demands and intrusion into politics undermined the autonomy of the state. With industrialisation, the state's freedom of manoeuvre was lessened. International influence only reinforced those class pressures inside South Korea. The overall effect was to force a retreat of the state and an end to a developmental policy.