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.     

The new Korean political economy: beyond the models of capitalism debate

Abstract

A key theme within the literature on the evolution of the Korean political economy since the 1997/8 crisis has been the extent to which Korea remains a ‘developmental state’ or has pursued radical neoliberal reform. These debates have not only reflected a concern with understanding the Korean economy but with a wider set of questions relating to the future of capitalist diversity within a globalized economy. By the late 1980s Korea had come to be regarded as a model of successful state-led late capitalist development. Korean modern economic history has insured that questions relating to the extent that it has pursued neoliberal reform have been of keen interest to students of political economy globally. This paper argues that substantive neoliberal reform has taken place in Korea since 1997. The thesis that a new ‘developmental state’ is in process of consolidating itself is simply wrong. However, the state's reform program interacted with material conditions and political coalitions at the meso level in a complex and uneven manner. In certain critical sectors, such as finance, a neoliberal regulatory regime has been consolidated. In others, such as telecommunications, developmentalist regulatory structures have proven to be highly resilient. In order to fully understand the complexity of the contemporary Korean political economy it is necessary, therefore, to prioritize the importance of meso-level analysis.     

Legitimacy in corrections

Research Summary
To extend research on legitimacy to the correctional system, we study a sample of 202 adult inmates randomly assigned to serve their 6-month sentence at one of two institutions—a traditional prison or a military-style correctional boot camp. Findings show that perceptions of justice system legitimacy changed during the course of incarceration, that the prison (but not the boot camp) proved delegitimizing, and that certain regime characteristics explained why.
Policy Implications
Across academic disciplines, studies continue to link compliance with perceived legitimacy. Compliance with the law, for instance, is related closely to the legitimacy of the justice system and its actors. These findings suggest implementing legitimacy-building policies such as procedurally fair treatment and decision making by police officers and judges. This article, by finding legitimacy to be malleable even at the final stage of the justice process, proposes the efficacy of similar policies in the correctional system. As research from England and Wales has shown, legitimizing strategies in this context could increase compliance both during and after incarceration.     

Quebec nationalism in the 1980s: a spent force?

The Independence Movement in Quebec 1945–1980. By William D. Coleman . Toronto: University of Toronto Press. 1984. Pp. xii, 274. Inder (paper) Conflict and Language Planning in Quebec. Edited by Richard Y. Bourhis . Clevedon, Avon: Multilingual Matters Ltd. 1984. Pp. xvi, 304. Index. $19.95 Problems and Opportunities in U.S.-Quebec Relations. Edited by Alfred O. Hero , Jr . and Marcel Daneau . Boulder and London: Westview Press. 1984. Pp. xv, 320. Index (cloth)