A Nested Game Approach to Political and Economic Liberalization in Democratizing States: The Case of South Korea

South Korea enjoyed high rates of economic growth until the mid–1990s. However in mid–1997 the country went into a severe economic crisis which ultimately resulted in a request for an IMF bailout. Leading up to the crisis, the government had embarked upon democratic liberalization but not much economic liberalization. This research explores why the government would lay the foundation for political reform without creating institutions capable of imposing economic reform on the politically powerful business sector. The absence of such institutions put the government in a position where it could not respond to the emerging economic crisis. The government's inability to act eroded its own position of power and governance. From this perspective, the government's inattention to economic reform appears irrational as it led to a weakening of its own position. We build a model of political and economic liberalization showing that the government was engaged in nested games (i.e., games in multiple arenas) with the political opposition, the labor unions, and the powerful business sector. We develop an argument that strong, antiliberal economic actors create incentive for the government in a democratizing state to refrain from economic liberalization, even while moving forward with democratic liberalization.     

The Sources of Growth in Federal Spending

The sharp upsurge in federal spending during the twelve years of the Reagan and Bush administrations is attributable largely—but not entirely—to the growth of outlays for entitlements. But while Reagan succeeded in cutting domestic discretionary spending by almost 10 percent, under Bush it rose by close to 18 percent. This article attempts to account for those differences and concludes by suggesting ways to slow the growth of total federal spending.     

Reviews

Joseph L. Nogee and Robert H. Donaldson, Soviel Foreign Policy Since World War II. New York: Pergamon Press, 1981. viii + 320 pp. Flexicover, £5.45.

Robert H. Donaldson (ed.), The Soviet Union in the Third World: Successes and Failures. Boulder, Colorado: Westview Press / London: Croom Helm, 1981. xiv + 458 pp. Hardcover, $25.00.

Karen Dawisha and Philip Hanson (eds.), Soviet—East European Dilemmas: Coercion, Competition, and Consent. London: Heinemann for the Royal Institute of International Affairs, 1981. xiv + 226 pp. Paper, £5.95.

Jerry F. Hough, Soviet Leadership in Transition. Washington, D.C.: The Brookings Institution, 1980. viii + 175 pp. $11.95 and $4.95.

Sheila Fitzpatrick, Education and Social Mobility in the Soviet Union 1921–1934. Cambridge: Cambridge University Press, 1979. x + 355 pp. £15.50.

Jan Ake Dellenbrant, Soviet Regional Policy: A Quantitative Inquiry into the Social and Political Development of the Soviet Republics. Stockholm: Almqvist & Wiksell, 1980. 192 pp. Sw. kr. 105.—

Maria Hirszowicz, The Bureaucratic Leviathan: A Study in the Sociology of Communism. Oxford: Martin Robertson, 1980. x + 208 pp. £12.50.

Theodore H. Friedgut, Political Participation in the USSR. Princeton, New Jersey: Princeton University Press, 1979. xvi + 353 pp. £11.70.

Ronald J. Hill, Soviet Politics, Political Science and Reform. Oxford: Martin Robertson, 1980. x + 221 pp. Hardcover. £12.00.

Daniel N. Nelson, Democratic Centralism in Romania: A Study of Local Communist Politics. Boulder: East European Monographs, distributed by Columbia University Press, New York 1980. xii + 186 pp. $19.50.

Timothy Dunmore, The Stalinist Command Economy: The Soviet State Apparatus and Economic Policy 1945–53. London: Macmillan, 1980. xii + 176 pp. £20.00.

Paul Marrer and John Michael Montias (eds.), East European Integration and East‐West Trade. Bloomington: Indiana University Press, 1980. vi+432 pp. US, Canada $32.50, UK £19.50, Elsewhere $40.63.

Christoph Bertram (ed.), Prospects of Soviet Power in the 1980s. London: Macmillan in association with the International Institute for Strategic Studies, 1980. 126 pp. £15.00.

Jiri Valenta, Soviet Intervention in Czechoslovakia, 1968: Anatomy of a Decision. Baltimore and London: Johns Hopkins University Press, 1979. xii + 208 pp. £7.75.

R. Selucky, Marx, socialism and freedom. London: Macmillan, 1979. 237 pp. £12.00.

Mihaly Vajda, The State and Socialism. London: Allison and Busby, 1981. 150 pp. £9.95 and £4.50.

Elizabeth Pond, Russia Perceived. A Trans‐Siberian Journey. London: Victor Gollancz Ltd., 1981. 296 pp. £9.95.

Philip T. Grier, Marxist Ethical Theory in the Soviet Union. Dordrecht: D. Reidel, 1978. xvii + 276 pp. No price.

Edward M. Swiderski, The Philosophical Foundations of Soviet Aesthetics: Theories and Controversies in the Post‐War Years. Dordrecht: D. Reidel, 1979. xviii + 225 pp. DM.65, US $34.00.

Edward Braun, The Theatre of Meyerhold: Revolution on the Modern Stage. London: Eyre Methuen, 1979. 299 pp. £9.95.