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.     

Globalization and economic disparities in East and Southeast Asia: New dilemmas

The once high-performing East Asian economies were suddenly rocked by the 1997 financial crisis. This raised the question of whether the crisis signals the end of the 'Asian development model' and provides further evidence of the 'globalization of poverty'. This article attempts to answer this question by examining the connection between liberalization (and deregulation) and the pattern of poverty reduction and income inequalities in four East and Southeast Asian economies severly affected by the late 1990s crisis. Based on the findings, it contests the view that globalization means the end of the role of the state. Instead, it is argued that, while some states are playing the role of promoters of the globalization process, others are redefining and resisting globalization. The crisis also has drawn attention to a possible third policy option, which would involve the revitalization of the regulatory role of the state, greater attention to social issues and a more national approach to economic management.     

Gender and institutional strengthening: the World Bank's policy record in Latin America

This article examines the gendered nature of institutional strengthening policies at the World Bank, as part of an attempt to analyse what role gender plays in the institutionalist turn within development policy. It focuses on three snapshots of Bank action wherein debates about gender and institutional strengthening are particularly pertinent: Washington, DC policy texts and Presidential speeches; gender policy enacted in the Latin American and Caribbean region; and an Argentine project loan on social capital promotion and family strengthening. Two themes emerge from these sites: (1) that couplehood between men and women has been identified as a key informal institution necessary for development; and (2) that gender reform has been positioned as an institutional change issue requiring attention to issues such as social marketing. New norms about gender interaction thus emerge as an explicit part of the Bank's reform agenda, and are shaping project experiences across Latin America.     

After pension reform: Navigating the “Third Rail” in China

Studies of pension reform in developing and transition economies tend to take for granted the capacity of states to implement ambitious and complicated new schemes for the provision of old-age income to pensioners. This article explains the fragmented, decentralized pattern of pension administration in China as an unintended consequence of pension reform. Policy legacies from the command-economy period, principal-agent problems in the reform period, and the threat of pension protests left urban governments largely in control of pension administration. The central government thus succeeded in its policy goals of pension reform but failed to gain administrative control over pension funds. Mark W. Frazier is assistant professor of political science and the Luce Assistant Professor of East Asian Political Economy at Lawrence University. He is the author ofThe Making of the Chinese Industrial Workplace: State, Revolution, and Labor Management (Cambridge University Press, 2002). His current research focuses on how central and local governments in China compete over pension reform. The author gratefully acknowledges helpful comments from Mary E. Gallagher, William Hurst, Dorothy Solinger, Jaeyoun Won, and two anonymous reviewers fromStudies in Comparative International Development. Funds for this research were provided by the Luce Foundation, the University of Louisville, and Lawrence University.     

Welfare,Inequality and Financial Effects of a Multi-Pillar Pension Reform: The Case of Peru

This paper studies the potential effects of a multi-pillar pension system on pension inequality, actuarial liability and welfare in Peru, by means of simulations of future distributions of pensions with social security administrative records. The results show that actual pension inequality and actuarial liability can be substantially reduced with welfare preserving policies. The simulations illustrate that when welfare is considered, it is important to define the implied value judgments, which are not universally agreed upon. Therefore, this paper highlights the trade-offs of a pension policy reform and contributes to assess the second generation of pension reforms in Latin America.     

Exploring the three varieties of East Asia's state-guided development model: Korea,Singapore, and Taiwan

In the postwar era, the East Asian state-guided development model has worked well to create successive economic miracles in the region. However, the enduring variances of the individual economies in East Asia still remain. This article explores the empirical diversities hidden behind the intra-regional commonalities. In particular, on the “growthstability-equity” spectrum, the East Asian development paradigm could be sub-divided into three categories: South Korea's “growth-obsessed” pattern (G); Singapore's “growth-with-stability” model (G-S); and Taiwan's “equity-and-stability-based growth” model (G-S-E). Largely derived from the deliberate political choice of a particular strategic path, each model of East Asia has materialized on the basis of strong developmentalist states. However, unlike the multi-goal options (G-S/G-S-E), as in Singapore and Taiwan, the mono-goal options ((G), as in Korea, could gain the chosen objective at considerable cost to the neglected dimensions. As a result, given a set of necessary political conditions, the multi-goal options are a better choice for Third World policy practitioners than are the mono-goal options.     

Political structures and financial liberalization in pre-crisis East Asia

East Asian economies differed dramatically in their vulnerability to the financial shocks of 1997–98. In the current literature on the Asian crisis, one key factor commonly adduced to explain the uneven crises is different national approaches to liberalizing the financial market. While extant analyses have yielded important insights into the correlation between divergent liberalization patterns and uneven crises, they have failed to deal with the crucial question of why East Asian economies diverged in their respective paths to financial market liberalization. To account for differences in liberalization approaches, this article develops an institutional explanation of financial policy choices. It posits that variations in liberalization patterns stem from fundamental differences in the organizational structures of the private sector, the bureaucracy, and the party system that shape the economic interests and political behavior of social groups and state agencies in the policy-making process. In making this argument, the article focuses on Korea, Singapore, Taiwan, and Thailand, the four major East Asian economies that pursued different liberalization strategies during the 1980s and 1990s and had contrasting performance in the recent financial crisis. It argues that cross-national differences in the above-mentioned domestic political structures within the four economies are the primary sources of their divergent liberalization approaches and outcomes, which, in turn, impacted financial stability to differing degrees and generated varying abilities to withstand external shocks. The author thanks Benjamin Cohen, Stephan Haggard, Otto Holman, Geoffrey Underhill, and anonymous SCID reviewers for their helpul comments on earlier drafts. Generous financial support from the Amsterdam School for Social Science Research and the Netherlands Fellowship Program is gratefully acknowledged. The usual disclaimers apply. Xiaoke Zhang is research fellow in the Amsterdam School for Social Science Research and the Department of Political Science at the University of Amsterdam. He is the author ofThe Changing Politics of Finance in Korea and Thailand (Routledge, 2002) and the co-editor ofInternational Financial Governance under Stress (Cambridge University Press 2003).     

State policy and industrial promotion in Taiwan: an interrupted time series analysis, 1956-1994

Over the past decade, the statist perspective has been popular in interpreting the economic success of the East Asian countries. Proponents of this perspective discredit the neoclassical view that market forces alone were the most important dynamic behind these economic achievements. Instead, they credit the state as the key factor of East Asian economic success. This study employs an interrupted time series analysis to examine the validity of the statist perspective on Taiwan's industrial promotion policy. The results suggest that the government of Taiwan has been successful in upgrading the island's industrial structure. This finding supports the statist perspective on development. It does not, however, deny the utility of the neoclassical view since market forces also contributed to the growth of Taiwan's industrial structure.     

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.     

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.     

Redefining Who’s ‘In’ and Who’s ‘Out’: Explaining Preferences for Redistribution in Bolivia

How does welfare state expansion reconfigure political coalitions? This paper challenges traditional accounts that pit social policy ‘insiders’, who univocally oppose policy expansion, against ‘outsiders’ who favour it. It argues that labour market vulnerability and partisan cues can play a critical role in shaping the preferences of both insiders and outsiders, and thus produce new pro-expansion coalitions. To test this claim, it employs historical analysis of key social insurance configurations in Bolivia over the last 30 years, as well as an original survey carried out in Bolivia following that nation’s 2007 extension of a noncontributory national minimum pension.     

美国对台湾“政治安排”的政策及影响

美国对台湾“政治安排”的政策对“合情合理安排两岸政治关系”有重要影响。美国对台湾政治定位的政策是“认知到台湾是中国的一部分”,不支持“台独”或“两个中国”,但同时又“对台湾地位不持立场”。在两岸关系的解决方式方面,美国对台湾的前途持开放立场,但认为应透过对话和平解决,且要尊重两岸民众的意愿。美国这一政策增加了对统一前两岸政治关系做出“合情合理安排”的难度,但在某些方面与大陆对台政策也有一致性。目前,两岸应充分利用这些相契合的政策,推进两岸政治关系做出“合情合理”安排。     

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.     

Still a new democracy? Individual-level effects of social trust on political trust in South Korea

The social capital theory holds that there is a positive relationship between social and political trust; however, despite the prominence of this postulation, this relationship has often been disputed among political scientists. While recent studies on advanced democracies have shown a strong positive relationship between social and political trust, studies on East Asian democracies, which previously showed a weak or negative relation, remain scant, separating these countries into their own category of new democracies. The motivation of this study is based on the importance of revisiting the relationship between social and political trust using recent data from one such country—South Korea—to determine the nature of this previously studied negative or weak relationship. The results of this study indicate that generalized social trust in South Korea is positively associated with political trust. This result is in line with recent findings in advanced democracies. While this positive relationship is consistent and significant across models, a greater portion of political trust is explained by economic and political performance, including factors such as the economy, corruption, inequality, and the welfare system, making institutional performance a critical predictor of political trust.     

The family state: a non-realist approach to understanding Indonesia’s foreign policy

ABSTRACT

The existing literature on Indonesia’s foreign policy has excluded the state from the category of an agent which shapes the country’s external affairs. This trend certainly ignores the notion that foreign policy is a unique state activity taking place in the interface between domestic and international politics. To fill the gap, this article explores the idea about the family state and looks at its influence on the conduct of Indonesia’s international relations. The argument is that the family state pursues order in international society in which sovereignty can be maintained. Indonesia plays the role of an order-maker in Southeast Asia through the Association of South East Asian Nations (ASEAN). The order-oriented actions are displayed by Jakarta’s diplomacy to resolve border disputes with neighbouring countries in the region.     

Changing development models in small economies: The case of Jamaica from the 1950s to the 1990s

By examining in detail the successes and failures of different development models in one developing country over a four-decade period, this article sketches a development model for small economies in the 1990s as an alternative to the neoliberal model pushed by the International Monetary Fund. It reviews the experience of Jamaica with various development models from the 1950s to the 1990s, with special attention focused on the experience of the Seaga government of the 1980s. It also draws lessons from the successful development experience of small European countries and of the East Asian Newly Industrialized countries. In normative terms, the alternative development model attempts to combine growth with equity and democracy. In analytical terms, it takes account of the constellation of domestic forces and appropriate political strategies, as well as of international economic and political conditions. The main features are a strong role for the state in economic interactions with transnational corporations, in identification of export markets and promotion of export production, in selective protection of domestic industry with an export potential, in promotion of agriculture linked to industrial development, in improvement of human resources and promotion of regional economic integration. Within these parameters, a crucial role is assigned to the domestic private sector and a complementary one to foreign investment. Distribution is to be addressed primarily through distribution of productive assets and access to health care and education. Evelyne Huber is professor of political science at the University of North Carolina, Chapel Hill. She is a coauthor ofDemocratic Socialism in Jamaica andCapitalist Development and Democracy. She is currently involved in research on the changing role of the state in Latin America and on comparative social policy. John D. Stephens is professor of political science and sociology at the University of North Carolina, Chapel Hill. He is a coauthor ofDemocratic Socialism in Jamaica andCapitalist Development and Democracy. His current research focuses on options for social democracy and comparative social policy.     

Democratization and bureaucratic restructuring in Taiwan

Taiwan has been moving toward democracy, with a dramatic transition taking place in the past decade. Critical to this transition is a restructuring of the relationship between the state bureaucracy and society. This study focuses on democratization's effect on Taiwan's bureaucracy. In particular, it seeks to examine such aspects of bureaucratic transformation as bureaucratic decisionmaking, legislative-bureaucratic politics, interest group-bureaucratic relations, the expansion of local autonomy, and civil service reform. This study finds that the bureaucratic state is facing a great challenge from political, legislative, and societal forces. The old type of insulated bureaucratic planning and decision making is no longer possible, the bureaucracy is losing its KMT patrons, and bureaucrats are finding themselves answerable to political pressure, legislative oversight, and interest group lobbying. While the bureaucracy has lost its previous level of discretion in terms of macro-management and the formulation of developmental policies, the bureaucratic state has not withered away. Qingshan Tan is Associate Professor of Chinese and East Asian politics and Director of the International Relations Program in the Department of Political Science at Cleveland State University. His recent publications are on issues of democratization in Taiwan and China.     

Conflict management and constructive engagement in ASEAN's expansion

This article examines the expansion of membership in ASEAN which has occurred during the second half of the 1990s, and identifies the factors behind this process, with particular attention devoted to the efforts aimed at implementing the conflict management mechanisms of ASEAN on a wider regional level. The study takes as its starting point the rapprochement between the original member states of ASEAN and Vietnam and Laos, which began during the second half of the 1980s and gained momentum following the resolution of the Cambodian conflict in 1991. The first half of the 1990s was characterised by the gradual acceptance by other Southeast Asian countries of ASEAN's code of conduct for inter-state interaction. This paved the way for the accession to full membership in ASEAN of Vietnam in 1995, of Laos and Burma in 1997 and of Cambodia in late 1998. Given the considerable discrepancy in the level of economic development between the new and old members of ASEAN, the economic motivation for expanding ASEAN would be to facilitate foreign investment in the new members and open new markets for exports within an expanded ASEAN Free Trade Area (AFTA). The article argues, however, that the political and security considerations are more important in explaining why the original members embarked on the process aimed at bringing all 10 Southeast Asian countries into ASEAN. It is in this context that the policy of constructive engagement and peaceful management of inter-state conflicts comes into play.     

The ASEAN free trade area and the construction of a Southeast Asian economic community in East Asia

In October 2003, ASEAN leaders decided to establish an ASEAN Economic Community (AEC) by 2020. An AEC is presented by advocates as a logical step following the completion of the ASEAN Free Trade Area (AFTA) by ASEAN6 in 2003. Adopting a critical political economy approach inspired by the work of Mitchell Bernard and Robert W. Cox, this article argues that the decision to launch AFTA and an AEC are motivated primarily by the desire to transform Southeast Asia into an investment site and a production base for the world market within East Asia, in competition with China. AFTA and a future AEC are decisions taken within the structural context of an East Asian region characterised, among others, by the organisation of Japanese production and the developmental state.