Adapting to democracy: Societal mobilization and social policy in Taiwan and South Korea

Democratic transition and institutional change do not necessarily guarantee greater political inclusion, particularly when it comes to the policy influence of civil society groups. Rather, political inclusiveness requires strategic adaptation among societal actors. Actors need to seize upon opportunities endemic to political change. This article provides a comparative analysis of health care reform in democratizing Taiwan and South Korea, focusing on two social movement coalitions, the National Health Insurance Coalition in Taiwan and Korea's Health Solidarity. Both movement coalitions were critical in shaping welfare reform trajectories in Taiwan and South Korea during the late 1990s, despite having been shut out from earlier episodes of health care reform. I argue that these groups (1) strategically adjusted their mobilization strategies to fit specific political and policy contexts, (2) benefited from broad-based coalition building, and (3) effectively framed the issue of social welfare in ways that gained these movements ideational leverage, which was particularly significant given the marginal place of leftist ideas in the postwar East Asian developmental state model. Joseph Wong is assistant professor of political science at the University of Toronto. He is the author ofHealthy Democracies: Welfare Politics in Taiwan and South Korea, published by Cornell University Press. Wong received his Ph.D. from the University of Wisconsin-Madison. The author thanks Edward Friedman, Jay Krishnan, Ito Peng, Richard Sandbrook, Linda White, along with the three anonymous reviewers for their helpful comments on earlier drafts of this paper. Thanks also to Uyen Quach and Nina Mansoori for their research assistance.     

Dilemmas and choices in educational policies: The case of South Korea and Taiwan

In the face of a similar challenge for economic development, South Korea and Taiwan differed greatly in their approaches to educational reform. South Korea permitted a rapid expansion in educational system, allowed the development of academic education, and pursued a relatively high tuition policy for higher education. In contrast, Taiwan controlled the growth of education, promoted vocational education, and maintained a relatively low tuition policy for higher education. Political dynamics, rather than economic efficiency considerations, explain the divergent choices in the educational reforms of these two countries. Tun-jen Cheng is associate professor of government, College of William and Mary, Williamsburg, Virginia, 23187–8795. He has published extensively on politicl economy and democratic change in East Asian newly industrializing countries. He is currently working on institutional designs of Korean democracy.     

From technological catch-up to innovation-based economic growth: South Korea and Taiwan compared

This paper sets out to analyse the divergent models pursued by South Korea and Taiwan in regard to technological catching-up and their ongoing transition towards innovation-based economies. It is found that South Korea's former high-debt and chaebol-dominated model inclined it to pursue a Schumpeterian scale-based technological development, while Taiwan's former pro-stability, small- and medium-sized-enterprise (SME)-based model tended to favour its emphasis on a neo-Marshallian network-based technological development. It will be argued that the state's approach to economic liberalisation and firms' demand for capital for technological upgrading are the major factors that have underpinned the adjustment efforts of these two countries.     

Competitive industrial policy and macro performance: Has South Korea outperformed Taiwan?

Taiwan adopted a competitive industrial policy before South Korea but pursued it more cautiously. According to orthodox theory, Taiwan's less interventionist policy should have increased its initial per capita income lead over South Korea. In fact, the income gap narrowed, and income distribution improved relatively in South Korea, casting doubt on the orthodox criticism of South Korean industrial policy. But some qualification of the South Korean success is in order. The South Korean gains were achieved at the cost of greater consumption fore gone and greater concentration of economic power than in the case of Taiwan. Moreover, the crucial post‐1985 Taiwanese economic slow down was partly due to economic maturation as well as to tardy financial reform and to the opportunities created by the Chinese diaspora for Taiwanese firms to invest abroad.     

Aid and state-building,Part II: Afghanistan and Iraq

Part I of this article found that, in South Korea and Taiwan, institutional legacy and continuity as well as the politics of aid did matter for post-war state-building. The inheritance and continuity of Weberian states and the receipt of aid either as budget support or increasingly aligned with local priorities helped to foster state-building. Part II of the study in this article explores a different dynamic of post-war aid to Afghanistan and Iraq which had a legacy of neopatrimonial and weak states. It argues that under more adverse initial conditions – for a neopatrimonial state – the role of aid regime and state-building strategies become even more important. Under these conditions, aid and state-building strategies may undermine state-building if they induce discontinuity in the existing state capacity and create parallel institutions to those of the state. Depending on the policies, state weakness may be reinforced if leaders are preoccupied with the politics of patronage.     

Impact evaluations in South Korea and China

While evidence-based policy-making is increasingly in demand, as new policies are required to bring effective results to targeted groups in South Korea and China, few studies have investigated the progress of quantitative impact evaluation that focuses on causality. This paper studies the trends of quantitative impact evaluation of public policy in South Korea and China by surveying major public administration and public policy journals in these two countries from 2000 to 2015. Among published articles in the major journals, our study pool includes research articles directly related to quantitative impact evaluation. Our study found that there has been considerable progress in impact evaluation research in South Korea and China in both data quality and empirical methods. However, empirical impact evaluation still comprises a small fraction (only one to two percent) of all research in public administration and public policy in both countries. We also found limited discussion on the selection mechanism and related bias in South Korea even in recent years, while causality and selection bias have been more commonly discussed in China. Also, advanced empirical methods are more frequently observed in journal articles in China than those in South Korea.     

Should the African lion learn from the Asian tigers? A comparative-historical study of FDI-oriented industrial policy in Ethiopia,South Korea and Taiwan

Ethiopia’s economy has been growing at breakneck speed for well over a decade now, earning the nickname as Africa’s lion. In recent years, the development literature on Ethiopia has paid particular attention to the role of industrial policy, especially the ways in which the Ethiopian experience compares to that of the Asian tigers. But through this comparative-historical perspective, little attention has been devoted to an important aspect of industrial policy in Ethiopia – foreign direct investment (FDI) in the manufacturing sector. This paper compares FDI-oriented industrial policy in Ethiopia in the current era (particularly focusing on light manufacturing) to that of South Korea and Taiwan between 1960 and 1990, arguably the two most generalisable cases among the Asian tigers. The paper argues that FDI-oriented industrial policy in Ethiopia seems to be bringing about short-term economic benefits, and is showing promise for further industrialisation. At the same time, it could benefit from taking more lessons from the long-term economic development perspective that characterised South Korea’s and Taiwan’s approach to FDI. Such a long-term perspective most importantly includes pro-active strategies to transfer technology from foreign firms to the domestic economy and the creation of backward linkages from foreign to domestic firms.     

The Co-evolution of Technology and Institutions in the Catch-up Process: The Case of the Semiconductor Industry in Korea and Taiwan

Abstract

This paper explores the industrial specialisation of latecomer countries, particularly Korea and Taiwan, which are often referred to as successful catch-up cases. The traditional wisdom is that the ‘developmental state’, resource leverage, and technological sophistication in an export-oriented strategy have been the factors for success. However, firm strategies and a supportive government are not sufficient to explain the different features of catch-up patterns. In this paper we propose that differences in industrial specialisation of catch-up countries are attributable to the interaction between technological characteristics and institutional settings, including corporate organisation, industrial structure, and the role of the public sector.     

Aid and state-building,Part I: South Korea and Taiwan

Under what conditions does foreign aid in the aftermath of war foster state-building? This article argues that institutional legacy and continuity and the politics of aid may matter. In the aftermath of war, for an aid regime to reinforce state-building, it may need to ensure continuity in the strength of the state and to use recipient mechanisms and finance policies that generate a greater state capacity. The existence and continuity of a Weberian state may increase the likelihood of effective state-building. If the state is relatively strong, with a Weberian bureaucracy, aid can further reinforce it when aid is spent through national systems or is aligned with local priorities, with efforts to ensure that the recipient leaders reinforce state effectiveness by implementing policies that may require greater state capacity. Evidence for this argument is provided through pairwise comparison of state-building patterns between South Korea and Taiwan.     

Foreign capital in Korea’s economic development, 1960–1985

The relationship between foreign capital and state autonomy is investigated in the rapidly developing South Korean economy. The changing composition and the sectoral distribution of the different types of foreign capital, the role of the Korean state in the acquisition and distribution of foreign capital, and the implications of foreign capital on the autonomy and capacity of the state are studied. The findings show that public loans and state-guaranteed commercial loans in the 1960s and 1970s have supported and strengthened state autonomy, while direct foreign investment (DFI) and commercial loans in the 1980s could potentially undermine it. Significant changes in the 1980s—rapid increase of Japanese DFI in hotels, commerical loans behaving more like DFI, and changing industrial orientation of the Korean economy toward more high-technology sectors—suggest that the types of foreign capital which are more independent of state control and more keen on market signals will increase in the future. This has importnat implications for future Korean economic development. Eun Mee Kim is an assistant professor of sociology at the University of Southern California. Kim has been conducting research on various topics of economic development and political development in South Korea and East Asia, and has published inPacific Focus, andThe Journal of Developing Societies. Kim’s current research includes the industrial organization and growth of the “chaebol” (business conglomerates) in Korea; the political economy of MNC investment by U.S. and Japanese corporations; and economic liberalization and political democratization in Korea and Taiwan.     

The developmental state: Israel, South Korea, and Taiwan compared

The growth performances of the Israeli economy during the years 1948–1973 were excellent by any criteria, and are comparable to the “miraculous” performances of South Korea and Taiwan. Excellent economic performances in the three countries were accompanied by the presence of an autonomous and an interventionist state as well as by strategies of governed development (in the spheres of finance, investment, and international trade). The comparison is used, to shed new light on the Israeli political economy as well as on the replicability of the developmental state model across regions, cultures, and political regimes. First, by comparing the three countries and pointing to the similarities in the role and autonomy of the state, the article offers a different interpretation of the Israeli economy from that offered by both neoclassical and neomarxist interpretations of the Israeli political economy. Second, successful cases of develoment are rare in our world; this should make the study of the Israeli political economy a valuable case-study for the proponents of the developmental state model. By pointing out the similarities in the growth performances and the developmental strategies of Israel, Taiwan, and South Korea, as well as the dissimilarities in their political regimes, their cultural traditions, and their regional settings, this article further strengthens the arguments in favor of state-guided economic development in developing countries. David Levi-Faur is a lecturer of comparative public policy and business and politics at the University of Haifa. He was a visiting scholar at the L.S.E., University of California, Berkeley, the University of Utrecht, and the University of Amsterdam.     

Why East Asia overtook Latin America: Agrarian reform,industrialisation and development

Scholars and policy makers have long debated the causes of the spectacular economic success achieved by the East Asian newly industrialising countries ( NICs ) as well as the lessons that other developing countries can learn from this development experience. Latin America started to industrialise many decades before the East Asian NICs and yet was quickly overtaken by them in the last few decades. This article explores the agrarian roots that may explain the different development trajectory and performance of the East Asian NICs, particularly South Korea and Taiwan, and Latin America. The analysis focuses mainly on three interconnected factors in seeking to understand why the East Asian NICs outperformed Latin America: 1) state capacity and policy performance or 'statecraft'; 2) character of agrarian reform and its impact on equity and growth; 3) interactions between agriculture and industry in development strategies.     

System of cities dynamics in newly industrializing nations

Rapid industrialization in such countries as Korea, Malaysia, and Taiwan suggests that the complex functional structures of cities in the periphery may appear early in development. This paper proposes a 4-stage framework for the dynamics of a system of cities in a developing country undergoing industrialization and encompassing both nonindustrial and industrial development. The synthesis is assessed with evidence from the newly industrializing Asian nations of Korea, Malaysia, and Taiwan. The 4 stages of cities' industrial change include 1) increasing primacy with industrial satellites, 2) increasing primacy with industrial satellites and nodal towns on a transport network, 3) rapidly increasing primacy with rapidly growing industrial satellites and nodal towns on the transport network, and 4) decreasing primacy with slowly growing industrial satellites and rapidly growing peripheral industrial towns. The 4-stage synthesis suggests that economic development in the periphery may occur even while the primate city maintains its hegemony over control and coordination functions. Peripheral industrial growth does not challenge this hegemony. The growth of industrial cities is, instead, part of a process of regional specialization in which the low cost labor in the periphery becomes an attraction for industry. These stages are not inevitable. Government efforts are necessary to develop rural areas in terms of social improvements (education and health), capital infrastructure (transportation and utilities), and fair payments to farmers for their outputs. These seem to be the lessons learned from the industrialization process in Korea, Malaysia, and Taiwan.     

Public opinion,social cohesion,and the politics of immigration in South Korea

This article analyses public opinion in order to explore the politics of immigration in South Korea. It argues that there are divergent views about immigration and the obligations of the host society to accommodate migrants. Younger, better-educated citizens are representative of a majority that has a generally positive view of immigrants and immigration. A sizeable minority of older and less well-educated citizens, however, is warier of immigration and its effects on South Korean society. Men were more likely than women to have a positive view of immigration, but the differences along gender lines were small. The article also finds that attitudes towards immigration depend to a significant degree on how migrants are described. It thereby highlights the possibility that South Korea’s leaders could use immigration for political gain while also seeking to attract new migrants in order to resolve the country’s economic and demographic problems.     

A note on the effects of graduation under the US GSP on Africa

The Trade and Tariff Act of 1984 includes a new measure, country graduation, designed to shift a greater share of the benefits of the US Generalized System of Preferences (GSP) from the more advanced developing countries to poorer beneficiary countries. This note presents estimates of the effects of graduating Hong Kong, South Korea, Singapore and Taiwan on the poorest countries of Africa. Our results show that the removal of these four countries will do little to increase the GSP benefits of the African beneficiary countries.     

Organising development: Comparing the national systems of entrepreneurship in Sweden and South Korea

The dominant paradigms of economic development have created an artificial institutional division between spontaneous markets and instrumental states. Opposing policy agendas have evolved and remain entrenched. This article seeks to challenge both approaches by reconsidering the role of entrepreneurship in economic development. Adopting an evolutionary perspective, it argues that a national system of entrepreneurship provides an appropriate framework for combining the creative and destructive processes inherent in entrepreneurship with the institutional diversity characteristic of successful economic development. The article illustrates this argument by comparing the development experiences of Sweden and South Korea.     

Reforming government with information technology in South Korea

The South Korean government recently launched 11 major e‐government services after a long period of inter‐ and intra‐ministry politics concerning the allocation of jurisdiction over various e‐government services. This article analyses the politics of e‐government efforts in South Korea. It begins by describing the development of e‐government policy in South Korea for the past two decades, and identifies its four major features as comprehensiveness, fragmentation, the orientation toward operational efficiency and citizen services, and the inclination toward new technological solutions. The article concludes that these features can be attributed to the heavy involvement of the macro political system, its high susceptibility to inputs from experts, and the institutional design of the informatisation subsystem.     

APPRAISING THE NEW INSTITUTIONAL ARRANGEMENTS FOR PRIVATIZATION OF KOREAN STATE-OWNED ENTERPRISES

Privatization is a long-term and complex process involving changes in attitudes, values, perceptions, and mentality. The president of the Republic of Korea and line ministries are pursuing an ambitious course of privatization. Based on common research questions concerning privatization policy, this paper has two objectives: first, to review the past performance of South Korea's privatization policy, and second, to evaluate the new institutional arrangements for the privatization of state-owned enterprises designed by the current government.     

Revisionism in the economics of backwardness

This article introduces the concept of structural competitiveness to explain the rapid development of South Korean steel industry. Three elements of structural competitiveness are: state autonomy, sound economic policy and indigenous technological capability. These elements have a significant bearing on the bargaining capacity of the state, autonomous investment decisions, labour control, the acquisition and absorption of modern technology, and ultimately international competitiveness. Global competitiveness of South Korea does not refute the technological dependence of developing countries. Rather it suggests the kind of socio‐institutional and economic policy contexts that are often necessary to foster competitive industries.     

Economic liberalisation for high-tech industry development? Lessons from China's response in developing the ICT manufacturing sector compared with the strategies of Korea and Taiwan

Abstract

This paper argues that China's response to economic liberalisation, which artificially focuses on promoting particular sizes of firms, cannot improve technological capabilities in the ICT manufacturing industry. Not only have historical and economic conditions created difficulties in adopting Korean and Taiwanese style policies, but also competitive ICT firms in the global economy are increasingly moving from manufacturing to innovation activities against a backdrop of increasing economic liberalisation. Given the WTO and ITA agreements, the main path which Korea and Taiwan employed is now unavailable. The government therefore should leave the size of firms to market forces.