Economic Development In South Korea Research Articles

The origins and development of the Northeast Asian political economy: industrial sectors, product cycles, and political consequences

Theories of the product cycle, hegemony, and the world system are used to analyze the creation and development of the Northeast Asian political economy in this century. Japan, South Korea, and Taiwan have each developed in a particular relationship with the others; the three taken together form a hierarchical, constantly interacting political-economic unit. During the period of colonial rule Japan was unique in building an imperial economic unit marked by a strong role for the state (whether in Tokyo or Taipei), by a tight, integral Unking of all three nations into a communications and transport network running toward the metropole, and by a strategy of both using the colonies for agricultural surpluses and then locating industries there. After 1945 a diffuse American hegemony replaced Japan's unilateral system, but elements of the prewar model have survived: strong states direct economic development in South Korea and Taiwan (here termed “bureaucratic-authoritarian industrializing regimes”); both countries are receptacles for Japan's declining industries; and both countries develop in tandem, if in competition, with each other. The most recent export-led competition has seen Taiwan succeed where South Korea has (temporarily?) failed, leaving Seoul in an export-led “trap,” burdened with rapidly increasing external debt. Taiwan, furthermore, has industrialized relatively free of social disruption, whereas Korean society resisted its transformation at Japanese hands and remains more rebellious today. There can be one Japan and one Taiwan, but not two or many of either, in the world economy.

Economic Development of South Korea.

Economic Development of South Korea.

South Korea's Economic Development and Its Socio-Political Impact

South Korea's Economic Development and Its Socio-Political Impact

South Korea's Economic Development and Its Socio-Political Impact

South Korea's Economic Development and Its Socio-Political Impact

Economic Development in South Korea: Prospects and Problems

Economic Development in South Korea: Prospects and Problems

Economic Development in South Korea: Prospects and Problems

In the twelve years since the armistice in the Korean War, Korea has scarcely lost its reputation as a cold, barren, and economically bleak country. Reports from U.S. servicemen still stationed along the lonely and near-isolated Demilitarized Zone, seem to confirm that reputation borne of the experiences of the war. And yet Korea has in fact undergone substantial change in the post-war period and is now-in the opinion of most close observers-on the verge of an economic break-through similar to that experienced on Taiwan and one which would make it along with Taiwan one of the more positive examples among developing countries. Speculating on the prospective economic success of any less developed country which, like Korea, has a standard of living still so grossly inferior to most Western or other industrialized nations, inevitably gives rise to some misunderstanding and misinterpretation-and not only between economic observers and the soldier on the DMZ. As the indicators of the Korean economy become more and more promising, Koreans themselves have been inclined to find outside observers, and particularly Americans, overly optimistic; such observers-in their opinion-fail to see some of the serious problems that persist in the economic and socio-economic scene. There is the feeling, moreover, that official American optimism at least may be colored by a desire to reduce the level of U.S. economic aid. On the other hand, it sometimes appears to Americans that Koreans are overly pessimistic: for every problem that is getting better, the Korean seems to find two that are getting worse. The difference in approach may be understandable, but it is important to try to narrow the gap of misunderstanding. The Korean economy has real strengths which have in the past often been discounted. At the same time, it contains real weaknesses, some of which touch upon deep and serious social and political problems. Since recent events in South Korea have generated so much optimism about its future, it seems timely to try to assess these strengths and weaknesses in some perspective. Throughout the period since the end of the Korean War, Korea has known substantial if uneven growth. A large part of the growth, however, was absorbed in the reconstruction and recovery of war damage. Another significant element went into the reestablishment of basic infrastructure that had been lost to South Korea with the division of the country: power,