Between development and the state: Recasting South Korean dirigisme

This article offers an alternative understanding and a critique of how South Korea's development has been interpreted by various scholars. The proponents of developmental state overlook the fact that South Korean dirigisme harmed equity, democracy, social cohesion, and thus the people's ability to take the initiative and form a viable civil society. By considering how the state meddled with the economy as a deliberately selected course, an analysis can be made of the dysfunction of developmental statism or “diseased” dirigisme. The inequity between the deprivations suffered by small firm operators and other citizens and the gains reaped by a few business conglomerates (or chaebol), remains symptomatic of South Korea's dirigiste disease. The dominant themes in the current economic discourses are privatisation, marketisation, deregulation and the rolling‐back of the welfare state. However, liberalising the economy without state reform may aggravate the dirigiste disease in South Korea. By linking the state‐led and people‐centred arguments, this article provides a fresh discourse on principles of policy‐making and state‐action to broaden the valuation of development beyond economic efficiency or competitiveness.     

The Limits of Studies in Comparative Development of East Asia and Latin America: the case of land reform and agrarian policies

This paper critically examines the widespread belief that the early implementation of comprehensive land reforms prior to the industrialisation process, coupled with subsequent agrarian state policies channelling the intersectoral transfer of resources, has been a central determinant of East Asia's (mainly Taiwan's and South Korea's) outperformance of Latin America. We argue that, although those agrarian policies should certainly be part of any comparative investigation of the course of capitalist development in each of these two regions, they cannot explain their divergence. The paper contends that the respective scope and timing of agrarian policies has been an expression of the specific contradictions of the early industrialisation process in each region, rather than an autonomous determinant of the course of the latter. Based on insights derived from the Marxian critique of political economy, the paper shows that each region's respective agrarian policies have expressed the differential resolution of the opposition between the rate of profit (industrial capital) and ground-rent (landed property) in the import substituting industrialisation process. In so doing, the paper takes issue with the claim that timely land reforms in Taiwan and Korea have facilitated the subsequent successful turn to an export-oriented industrialisation strategy. An alternative account of the different developmental paths in East Asia and Latin America based on the unfolding of the Marxian ‘law of value’ on a world scale is also provided.     

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.     

Limits of regulatory governance change in the post-developmental state: Korean telecommunications market restructurings from a comparative perspective

This study explains the limits of institutional transformation in Korea from the developmental state to a post-developmental state, in terms of regulatory institutions instead of developmental institutions. The Korean state has taken advantage of the government's discretionary policy changes and power formed by both informal state institutions and informal policy networks, while the regulatory state has placed a special emphasis on social consensus as well as political support for changes of market institutions. New market rules and laws have also been inefficient and ineffective for fair market competition. Limits of regulatory governance change have occurred due to misalignments between informal regulatory institutions in the developmental state and formal regulatory institutions in the post-developmental state. State managers have created discretionary state intervention in policy implementation, politicized the roles of regulatory agencies, and brought ministry-type regulatory state institutions back in. The establishment of effective market institutions has failed due to informal market institutions (unfair and illegal market practices) that have interfered with the policy implementation of new formal market regulations.     

Mediating international and domestic demands: mnemonic battles surrounding the monument to the fallen of the wars of the 1990s in Belgrade

In this article I present a decade-long affair over the erection of the Monument in Belgrade to those killed in the wars of the 1990s where the official Serbian policy was to manage its contested past through cover ups and cultural reframing rather than public acknowledgement. I demonstrate here that, though the open competitions to erect a monument dedicated to the fallen¹1. This was the most contested issue and was changed in every open competition formulation.View all notes of the wars of the 1990s were an opportunity to negotiate different mnemonic agendas, the ruling political elite, as the dominant actor, promoted Serbian victimhood as it meant to bridge gaps in the opposing domestic and international demands. I suggest here that the mnemonic battle in present-day Serbia proves to be an exemplary case of how a post-conflict nation state mediates its contested past when caught in the gap between the domestic demands and those of international relations.     

Whither the Developmental State? Explaining Singapore's continued Developmentalism

This paper examines why the Singapore developmental state, unlike the other East Asian developmental states, has shown no signs of devolving but instead appears to be strengthening its position within society by embarking upon several ‘post-industrial’ economic programmes. By utilising a class relations perspective, the paper argues that the resilience of the Singapore developmental state results from the continued weakness of the domestic capitalist class as well as from the state's collaboration with transnational capital and government-linked corporations. At the same time the working class has continuously been ‘incorporated’ by the state. To illustrate these processes, the paper examines Singapore's Biomedical Sciences Initiative, and the Work Restructuring Scheme, which have reinforced the supremacy of the Singapore developmental state, particularly in the economic sphere. The paper concludes that developmental states need not necessarily devolve, if they can continue to provide economic growth as well as to carefully ‘manage’ class relations in society.     

Integrated resorts and hotel (gambling) service enterprises in Singapore,Macau and Australia: the changing policy landscape

In 2006, Singapore passed legislation allowing the establishment of integrated resorts (IRs) with extensive gaming facilities on the island nation. The Singaporean government was motivated to open two massive IRs in 2010 by the twin objectives of achieving a dramatic elevation in the position of the services industry within their national economy, and to increase state income through lucrative gaming taxes. The Singapore government's decision to take this developmental step was directly influenced by the expansion of Macau into the largest global gambling entity in the world, now dwarfing Las Vegas across all key indicators including revenue and visitor numbers. Macau's position at the pinnacle of Asian gambling, attracting the massive Chinese market, is now beyond dispute. Combined, both Macau and Singapore have altered the IRs services landscape of Asia and Australasia. The economic success of the two Asian gambling giants has seen notable policy responses from national and regional governments. In Australia these policy responses have led to decisions to build new IRs and massively redevelop existing facilities up to a new standard of service aimed at competing with the new facilities operating in Singapore and Macau.     

Dependency,the state and class in the neoliberal transition of Taiwan

The remarkable economic growth in Taiwan has served as a model of the developmental state as well as a source of scepticism about neoliberal policy for many less developed countries. However, since the mid-1980s Taiwan has gravitated from its previous statist model to the universally embraced 'market-orientated' restructuring. This study seeks to explain this neoliberal transition. A disaggregated approach is employed to break neoliberalism down into three distinct dimensions: market openness, fiscal austerity, and privatisation of public sector enterprises. The analysis results confirm that: (1) Taiwan's trade dependency on the USA constituted a decisive factor in the state opening its domestic market; (2) distributional politics was forged in a new but weak democracy to incorporate more interest groups in the fiscal expansion of the post-authoritarian era; and (3) the slow but increasingly steady progress of privatisation plans was influenced not by a 'back-to-the-market' idea but by the statist legacy with which bureaucrats attempted to manage public sector enterprises even after they became de jure private firms. The theoretical implications of this transition are discussed in the conclusion.     

From class struggle to class compromise: Redistribution and growth in a South Indian state

This article examines the evolution of class politics and developmental strategies in the state of Kerala in South India. Following Independence, lower‐class mobilisation produced an agrarian transition and resulted in the consolidation of a redis‐tributive‐welfarist state. Since the early 1980s, however, the economic contradictions of labour militancy and redistribution in a sub‐national economy have resulted in the decline of the politics of class struggle in favour of the politics of class compromise. Labour militancy and opposition to capital have given way to corporatist arrangements that emphasise accumulationist strategies of development. This transition has been made possible by the mediating capacity of an interventionist state and the politically hegemonic position of the working class.     

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.     

China's Engagement with Neo-liberalism: Path Dependency,Geography and Party Self-Reinvention

China's post-Mao market reform, even after the Asian crisis, does not conform to the standard IMF/World Bank model and the state continues to mediate market reform. Three principal factors have influenced how the state mediates China's market reform: path dependency, a result of China's communist and nationalist revolution; China's geography, which favours developmental-state-type industrialisation; and most important of all, the Chinese Communist Party's successful post-Mao self-reinvention that has enabled it to remain in power as a monopolistic party. These factors determine that China's engagement with neo-liberalism will be a loose hug rather than an intimate embrace.     

The Case of Nord-Ost: Dubrovka and the Search for Answers

The paper reviews the experience of the group Nord-Ost (The Regional Social Organisation for Assistance and Defence of the Victims of Terrorist Acts) as an example of an NGO that has taken a rights advocacy position which has led it into confrontation with the state. Nord-Ost demands the state's accountability for the consequences of its response to the 2002 Dubrovka terrorist attack. Thus, it confronts challenges common to other rights advocacy groups in Russia today.     

Gender wage inequality and export‐led growth in South Korea

This article investigates the relationship between gender, wage inequality, and export‐led growth in South Korea. The persistent gender wage gap in Korea's manufacturing sector is found to be linked to women's segregation in the country's major export industries where real wage growth has lagged productivity growth, despite favorable market conditions that might drive up women's wages relative to those of men. The interaction of state‐ and firm‐level hiring, training, and promotion practices that structure women's and men's employment opportunities differently appear to have resulted in a relatively weaker fall‐back position for women in labour markets. Econometric results are consistent with the hypothesis that women's weaker fall‐back position limits their ability to bargain for wage increases commensurate with productivity growth. Further, evidence is presented which links gender wage inequality to the growth of Korean exports.     

South Africa's emergence as a middle power

This article seeks to explain South Africa's ostensible emergence as a middle power. It makes the case for the use of a Coxian-based critical theory perspective, which relates the interrelationship between change at the level of world order, the nature of production and the social forces operative in the middle power's state-societal complex to explain South Africa's increasingly active role in international affairs. Playing a mediatory role helps the South African state make diverse foreign policy goals more compatible and it also goes some way in thwarting criticism levelled at its foreign policy in the state-societal domain. Contrary to earlier theorising about middle powers, this article supports a more recent contention that middle powers act in their own (ie dominant societal) interests. The value of such a perspective is illustrated in the light of current debates about the apparent incongruity of South African foreign policy.     

Africa's prospects and South Africa's leadership potential in the emerging markets century

This article examines Africa's role in an evolving international system where powerful emerging markets, such as bric, together with established powers are shaping economic trajectories. The specific focus is on South Africa as an aspiring leader on the African continent, and on its potential for becoming an emerging market shaping the global order together with bric and the West. It is unclear whether a changing global economy in which the postcolonial world plays a greater role will result in improved developmental prospects for Africans as African countries gradually reorient themselves from the West to the South, or whether relations with emerging markets will resemble neo-colonial ties with the West. South Africa's structural weakness, stemming from serious domestic problems of a social, political and economic nature, threatens to undermine its standing in Africa and its emerging market status.     

The Mafioso State: State-led market bypassing in South Korea and Turkey

'Developmental' states often obfuscate the distinction between the state and the market, as state actors prefer political over economic solutions to market problems (market bypassing). Market bypassing is a process of replacing monopolies in the private sector with state monopolies; in so doing, the state transforms itself into a mafioso state. The business of the mafioso state is selling 'protection' to businesses and collecting extracts, either legal or illegal, in return. The result of the mafioso state in the economy is the conglomeration of businesses, as is clearly the case in both South Korea and Turkey.     

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 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.