Inclusive partners? Internationalising South Korea’s chaebol through corporate social responsibility-linked development cooperation

Abstract

In recent years, non-traditional or ‘emerging’ donors such as South Korea have organised their development cooperation models in a manner that seeks to complement the capacities of the private sector by extending the overseas activities of domestic businesses. To better understand this process, this article examines the role of South Korea’s large, family-led conglomerates (chaebol) in its growing international development sector. In particular, we focus on how the concept of corporate social responsibility (CSR) has been used to link the role of its large, and frequently scandal-ridden, private companies to international development, and, by extension, how it has helped to internationalise state–business networks long associated with the Korean developmental state. We examine two strategies through which this has been carried out. The first is by extending the logic of creating shared value (CSV, a derivative of CSR) to aid and infrastructure projects in which chaebol and other state-linked businesses have participated. The second is by directly embedding CSR-based aid initiatives in the value chains of the specific chaebol themselves.     

Participatory Democracy or Pseudo-Participation? Local Government Reform in Ireland

Since 1996 local government in the Republic of Ireland has undergone extensive reform. One of the central aims of this reform is the enhancement of local and participatory democracy through generating new forms of participation by communities in local authority decision-making processes, and through strengthening the decision-making role of city and county councillors. Drawing on comparisons with current British local government reforms and on key community governance frameworks, this paper questions the validity of this aim, given the ‘top-down’ nature of the reforms, the ongoing weakness of Irish local government vis-à-vis central government, and the increasingly contractual and consumerist approach of the state towards the voluntary and community sector. It argues that the reforms consolidate Irish local government as a system of local administration rather than local democracy, and that they may threaten the development of participatory democracy, rather than facilitate it.     

The Politics of Competitive Tendering: Political Orientation and Attitudes towards Contracting Out among Finnish Local Politicians

Using survey data on Finnish local politicians (n = 364) we examine the extent to which political orientation affects attitudes towards and perceptions of competitive tendering in social and health service provision. Expectation of cost benefits turns out to be the most important factor accounting for willingness to increase the usage of competitive tendering. The perceived positive impact of tendering on local democracy is also related to local politicians' readiness to implement reforms. However, political orientation does have a strong effect on politicians' perceptions. We also consider whether there are mitigating factors that could mask the relationship between political orientation and attitudes towards tendering. We identify one such factor, municipal employment: public-sector employees form a kind of informal ‘interest group’ resisting public-sector reforms in municipal decision making. In general, our results suggest that macro-level studies on competitive tendering underestimate the effects of political ideology on local decision making.     

Merging county administrations – cross-national evidence of fiscal and political effects

ABSTRACT

While many central governments amalgamate municipalities, mergers of larger county administrations are rare and hardly explored. In this article, we assess both fiscal and political effects of county mergers in two different institutional settings: counties act autonomously as upper-level local governments (Germany), or counties being decentralised branches of the state government (Austria). We apply difference-in-differences estimations to county merger reforms in each country. In both cases, some counties were amalgamated while others remain untouched. Austrian counties (Bezirke) and German counties (Landkreise) widely differ in terms of autonomy and institutions, but our results are strikingly similar. In both cases, we neither find evidence for cost savings nor for staff reductions. Instead, voter turnout consistently decreases in merged counties, and right-wing populists seem to gain additional support. We conclude that political costs clearly outweigh fiscal null benefits of county merger reforms – independent of the underlying institutional setting.     

Imperial governance,sovereignty and the management of chronic instability in Africa

An important political consequence of the crisis of capital in the 1970s has been an increasing intensification of informal imperialism within Africa. This paper argues that the advanced capitalist countries again confronted the endemic problem of overcapacity alongside a decline in the rate of profit and that the major neoliberal reforms foisted upon the African continent were part of the spatio-temporal fix that followed. The quotidian management of many African states was not an intended consequence of structural adjustment, but the subsequent perturbations that beset many developing countries after following such policies has led to such a degree of institutional instability that a new form of imperial governance has come into being. Juridical sovereignty has been maintained, but political sovereignty has been severely compromised through the emergence of this neo-imperial governance. Today an array of external actors is embedded in the sinews of these states, setting the general parameters of state policy to such an extent that one can no longer speak of these countries as possessing de facto independence. The rise of these so-called ‘governance states’ and the new emphasis on ‘governance with government’ constitute a new non-territorial, political form of imperialism.     

Indigenous food sovereignty in a captured state: the Garifuna in Honduras

Abstract

This study explores the emergence of the Afro-Indigenous food sovereignty movement in the context of a captured Honduran state and unequal political economy. In contrast with national-level research that has advocated a policy of food security in the context of non-indigenous campesino movements, this work explains how food sovereignty is more appropriate regarding Garifuna Hondurans. In a political economy that has precluded other options, and given the deep cultural relation that Garifuna activists have to land and autonomy, food sovereignty provides a possibility around which Indigenous development can be animated. It encapsulates a local ‘fight’ response to repression as an alternative to northern ‘flight’, often via migrant caravans, that many Garifuna have undertaken. This study shows how food sovereignty, more than being a technical policy set, is a discursive and material node through which dispossessed and especially indigenous populations can enhance decolonial power in the contestation of entrenched hegemonic and institutionalised power in a corrupt, unequal and colonised political economy.     

Autonomy and managerial reforms in Europe: Let or make public managers manage?

Drawing on a survey of top executives in central governments in 11 European countries (N = 5,190), this study explores variations in the extent and scale of managerial autonomy across and within European states. The article is based on a comparative, multidimensional and relational approach to autonomy. Confirming predictions of qualitative studies, it shows that these variations can partly be explained by the intensity of New Public Management (NPM) reforms and provides a typology of European countries connecting the intensity of neo‐managerial reforms (measured by the declared use of management tools) to the degree of managerial autonomy. Our findings support Donald Kettl's hypothesis differentiating countries where the ‘let the manager manage’ model prevails, as in the Northern countries, by contrast with those, such as the United Kingdom, dominated by the ‘make the manager manage’ programme. The promise of managerial autonomy has also not been delivered to the same extent across and within countries.     

Citizens versus Parties: Explaining Institutional Change in German Local Government, 1989–2008

Abstract

From 1989 to 2008, local governments in Germany have experienced ‘massive’ institutional change. Local constitutions have been altered in all German states giving citizens more say in local politics, while at the same time reducing local parties' influence. The paper first describes the changes according to two analytical models of local democracy. It then tries to explain the institutional change as a process of diffusion in a federal state. Three questions are answered in the explanatory part: Why did some forerunner states start with the reforms at the beginning of the 1990s and not earlier? Why did the reforms continue in other states although there was no general pressure from above? And why did some states continue with the reforms while others did not? In the first part of the paper the changes are described quantitatively while a qualitative approach is used in the explanatory part. The analyses show that the beginning of the reforms is related to ‘massive political failure’ while further reforms are a result of rational learning by different actors (large parties, small parties, non-governmental actors) depending on different means of reform. Based on these results we forecast a continuation of the reforms in the next years leading to a convergence of citizen-oriented local government all over Germany.     

National in Form,Putinist in Content: Minority Institutions ‘Outside Politics’

Abstract

Over the past three decades, Russia has developed a set of institutions for the management of ethno-linguistic diversity based on the principle of ‘national cultural autonomy’. This article examines the positioning of these institutions within Russian society, arguing that while state-endorsed discourses locate them within the culture sphere—treated as distinct from political processes—there is in fact an interpenetration of ‘politics’ and ‘culture’. The article identifies why these institutions position themselves within the ‘cultural sphere’ while also supporting the country’s meta-narratives on inter-ethnic tolerance and, effectively, the political status quo. Soviet legacies of inter-ethnic relations continue to be socially embedded, yet within this framework some dissenting voices are also discerned.     

The limits to military power: Institutions and defense budgeting in democratic Argentina

This article examines the reasons behind the dramatic decline in military budgets in Argentina under democratic rule. These trends were unexpected, given the, political power the armed forces of that country have wielded in the past. Here it is argued that within the democratic state, there were institutional arrangements that enabled civilian decision makers to trim defense expenditures, despite opposition from the military. The two key institutional traits were found to be the concentration of authority and the autonomy of decision-makers from outside pressures. Because budgetmaking was centered within a well-insulated civilian-run ministry, fiscal planners working at the behest of the president were able to design and implement budgets they wanted, over and above the objections of military officers, and without interference from other branches of government. David Pion-Berlin is a Professor of Political Science at the University of California, Riverside. He is the author of several books, includingThrough Corridors of Power: Institutions and Civil-Military Relations in Argentina (Penn State University Press, 1997), and numerous articles on the subjects of Latin American civil-military relations, military regimes, political economy, and political repression.     

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 impact of scale on management structures and processes

This paper advances the conjecture that the shift to a direct election of mayors in Israel, a most significant step towards recognising local authorities as political entities in their own right, has prevented further progress in the same direction. Hirschman's ‘getting stuck syndrome’ is used here to explore this paradox. Since a highly centralised system is not compatible with a ‘strong mayor system’, there developed an ingenious scheme — ’de facto decentralisation’ — a peculiar blend of formal ‘agency’ relationship, informal ‘partnership’ and ‘grey‐area’ autonomy. This scheme persists apparently because it is well suited to a world of ambiguous and conflicting imperatives.     

The state‐Moro armed conflict in the Philippines Unresolved national question or question of governance?

The continuing struggle of the Moro secessionist movement in the Philippines is one of Southeast Asia's longest armed conflicts. The tenacity of the conflict lies in two competing concerns: the assertion of self‐determination rights of the Moro separatist movement; and the affirmation of the Philippines’ sovereign right to territorial integrity. However, beneath these rights are crucial issues that remain unanswered both by the contending forces—problems where internecine violence and conflict emanate from. This article argues that self‐determination rights can be adequately exercised by people who have clearly defined their national identity and concept of a nation. Unfortunately, the Moro multi‐ethnic national identity has yet to be crystallised while the idea of a Bangsamoro (Bangsa Nation) remains weak. On the other hand, the state has yet to address the Moron’ legitimate demands of political autonomy, socio‐economic development, and social justice and discrimination. Without underestimating the ethnic component of secessionism, the article concludes that poor governance has prolonged, complicated, and further justified the Moros’ quest to secede from the Republic.     

The securitisation of life: Eastern Kurdistan under the rule of a Perso-Shi'i state

Abstract

Since the 1979 Revolution, the Iranian state has adopted a sophisticated set of policies to assimilate the Eastern Kurds. The Kurds are often the main target of the Iranian state’s military operations, its assimilatory strategies, and its regime of surveillance. After the ‘conquest’ (fath) of Eastern Kurdistan (Rojhelat) in 1979, the state tried to retain control over the region through systemic militarisation, the establishment of ‘revolutionary institutions’, and new religious and cultural centres, to transform the demographic, religious and cultural profile of Kurdistan. This paper is an attempt to illuminate the state’s religious nationalism and various forms of assimilatory strategies that the Islamic Republic of Iran has employed to transform Kurdish regions.     

Maintaining disorder: the micropolitics of drugs policy in Iran

Abstract

This article analyses the ways in which the state ‘treats’ addiction among precarious drug (ab)users in Iran. While most Muslim-majority as well as some Western states have been reluctant to adopt harm reduction measures, the Islamic Republic of Iran has done so on a nationwide scale and through a sophisticated system of welfare intervention. Additionally, it has introduced devices of management of ‘addiction’ (the ‘camps’) that defy statist modes of punishment and private violence. What legal and ethical framework has this new situation engendered? And what does this new situation tell us about the governmentality of the state? Through a combination of historical analysis and ethnographic fieldwork, the article analyses the paradigm of government of the Iranian state with regard to disorder as embodied by the lives of poor drug (ab)users.     

Local government in post-communist poland: A study of federalism and executive authority in plock

This article examines the establishment of local government in post-communist Poland. Its purpose is to examine the realignment of central state and local government authority established through the Polish National Assembly's (Sejm) 1990 reforms and to provide an assessment of developing local government autonomy and executive authority in the new city government structure.

The conceptual framework is comparative, using an American perspective to examine issues of local government autonomy and executive authority.     

Governments vs States: decoding dual governance in the developing world

This article begins by questioning the transferability of Western conceptualisations of the ‘state’ to the developing world, particularly to those areas in which security concerns are extreme. It proposes that the complicated relationship between security and political liberalisation produces a reform–security dilemma, which in turn may result in dual-governance structures consisting of an autonomous ‘state’ bureaucracy and a relatively newer, political ‘government’. The dynamics of such a duality are explored through a longitudinal comparison of two critical cases: Iran and Turkey. Both cases reveal evidence of the ‘state’ and ‘government’ as distinct bodies, emerging over time in response to conflicting pressures for security and liberalisation. While the Iranian case remains entrenched in a static duality with an advantaged ‘state’, the Turkish case provides optimism that, under certain conditions, an eventual subordination of the state to the political government can take place.     

Divergent politico-legal responses to past presidential corruption in Zambia and Kenya: catching the ‘big fish’, or letting him off the hook?

The criticisms of globalisation and international institutions often confuse the current state of multilateralism and its asymmetrical organisation; the economic theories it uses (the ‘Washington consensus’); and the reforms it promotes, such as liberalisation. Economic stagnation, however, has many causes other than the multilateral organisations’ reforms, which may have little impact on growth. These reforms may be efficient, irrelevant or powerless vis-à-vis the other determinants of growth. The paper discusses the several determinants of growth other than policy reforms, such as countries' structural and institutional characteristics, and analyses the consequences of reforms, in particular trade liberalisation. These consequences constitute a challenge to the credibility of reforms, but may also lead to deeper thinking about the determinants of economic growth and further developmental reforms.     

Open Government Information: Challenges Faced by Public Human Resource Management in China

The implementation in China of the Regulations of the People's Republic of China on Open Government Information, on May 1, 2008, is considered a potential turning point, a shift from traditional public administration characterized by an entrenched culture of secrecy toward more transparent and accountable administration practices. This article shows, however, that due to a variety of institutional constraints, the implementation of the Regulations is still lacking. Although the success of an open government information (OGI) regime in China ultimately relies on thorough political and administrative reforms, this article presents the argument that short of drastic political system change, the implementation of the Regulations could be improved by adopting innovations at the management level. This article suggests that the Chinese government adopt new human resource management strategies in leadership, training, and performance management that are compatible with OGI in order to significantly improve the implementation of the Regulations. An incremental approach to improving OGI implementation in China will finally pave the way for future political reform.     

Going Underground: the political economy of the ‘left turn’ in South America

This article argues that South America’s ‘revolutionary’ left turn can be best explained by its assertion of state property over natural resource extraction. The recent history of the leftist movements in Venezuela, Bolivia and Ecuador relates to the failures of the neoliberal reforms applied in the region decades before, hence the dismantling of core orthodox policies has been critical for them once in power. This has been possible through the expansion of state action in the economy, but mainly through the governance of hydrocarbon extraction and the control of subsoil rents. Resource extraction has been central to the political economy of Andean left-wing revolutionaries, responsible for many of their successes but also their impending challenges. This rearticulation of underground governance is linked to global transformations that give prominence to emerging economies and reinforces these countries’ position in the world economy as providers of primary commodities.