Middle power identities of Australia and South Korea: comparing the Kevin Rudd/Julia Gillard and Lee Myung-bak administrations

This paper explores the middle power identities of Australia and South Korea during the Kevin Rudd/Julia Gillard (2007–2013) and Lee Myung-bak (2008–2013) administrations. Considering the problems in the existing position, behaviour, impact and identity-based definitions of middle powers, examining how self-identified middle powers have constructed such an identity would offer useful insights into the middle power concept. Relying on a framework that captures an identity's content and contestation, this paper argues that while Australia and South Korea have assumed a middle power identity, their visualisations of this identity are slightly different. Australia has understood its middle power identity in both economic and security terms, whereas South Korea appears to have connected such an identity more with the economic dimension. These differences affect how they envision their respective middle power roles in international affairs.     

Better by design: Korea's neoliberal economy

Abstract

This paper examines the processes of bank and corporate restructuring in South Korea since the 1997–98 economic crisis, and seeks to highlight how the state has intervened in a highly dirigiste manner in order to expedite restructuring in both the commercial bank and corporate sectors. At the same time it demonstrates the clear neoliberal principles that have underpinned the state's attempts to promote restructuring. The state has shown a clear determination to take action against insolvent firms and financial institutions no matter how large or strategically important they may be, to impose hard budget constraints on key economic actors. Furthermore, the state has actively sought to engineer the sale of key domestic firms and banks to foreign investors. We argue that Korea's efforts to create a functioning neoliberal economy have been largely successful and are functional from the perspective of Korean capitalism, if not the perspective of individual Korean firms. Changes in the global economy in the two decades preceding the 1997–98 crisis imposed an increasingly inescapable pressure on the Korean state to effect a neoliberal transformation and Korea's future as a centre of capitalist accumulation has for some time been bound up with the success of the neoliberal project. In conclusion, this paper seeks to draw out the broader implications of this reading of the post-crisis restructuring programme for debates on global economic liberalization and the future of capitalist diversity.