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The Korean Developmental State: from Dirigisme to Neo-Liberalism

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The Korean Developmental State: from Dirigisme to Neo-Liberalism The Korean Developmental State The Korean Developmental State is a comprehensive and up-to-date analysis of processes of state and economic restructuring in South Korea since the 1997 crisis. The book distinguishes itself from previous studies by consistently arguing that structural changes in the global political economy have played a crucial role in reshaping the Korean state’s own economic project. More precisely, Iain Pirie seeks to demonstrate how the Korean state increas- ingly adopted neo-liberal policies from the 1980s onwards as a rational response to the evolution of global economic structures; an evolution which has been driven by the continuous attempts of major global firms and leading capitalist states to overcome the chronic profitability problems that have dogged the core capitalist area since the late 1960s. The radical restructuring programme the Korean state initiated after the 1997 crisis must be understood as a logical con- clusion to these earlier, more incremental, processes of reform it initiated almost two decades earlier. This book seeks to establish the neo-liberal character of the Korean state through a close analysis of key institutional and policy reforms, and serious engagement with more theoretical debates concerning the nature of the neo-liberal state itself. The Korean Developmental State offers a new perspective on the economic experience of Korea as a development model, one that emphasises global trends and contradictions for Korea’s economic crisis and resulting transformation, and as such will be of significant interest to scholars of Korean studies and the Asian economy. Iain Pirie is an assistant professor at the University of Warwick. His research examines how the changing dictates of international competitiveness have shaped state restructuring processes since the 1970s. Routledge studies in the growth economies of Asia 1 The Changing Capital Markets 8 Economic Development in of East Asia Twentieth-Century East Asia Edited by Ky Cao The international context Edited by Aiko Ikeo 2 Financial Reform in China Edited by On Kit Tam 9 The Politics of Economic Development in Indonesia 3 Women and Industrialization in Contending perspectives Asia Edited by Ian Chalmers and Edited by Susan Horton Vedi R. Hadiz 4 Japan’s Trade Policy 10 Studies in the Economic History Action or reaction? of the Pacific Rim Yumiko Mikanagi Edited by Sally M. Miller, A.J.H. Latham and 5 The Japanese Election System Dennis O. Flynn Three analytical perspectives Junichiro Wada 11 Workers and the State in New Order Indonesia 6 The Economics of the Vedi R. Hadiz Latecomers Catching-up, technology transfer 12 The Japanese Foreign Exchange and institutions in Germany, Japan Market and South Korea Beate Reszat Jang-Sup Shin 13 Exchange Rate Policies in 7 Industrialization in Malaysia Emerging Asian Countries Import substitution and infant Edited by Stefan Collignon, industry performance Jean Pisani-Ferry and Rokiah Alavi Yung Chul Park 14 Chinese Firms and Technology 23 Technology, Competitiveness in the Reform Era and the State Yizheng Shi Malaysia’s industrial technology policies 15 Japanese Views on Economic Edited by Jomo K.S. and Development Greg Felker Diverse paths to the market Kenichi Ohno and Izumi Ohno 24 Corporatism and Korean Capitalism 16 Technological Capabilities and Edited by Dennis L. McNamara Export Success in Asia Edited by Dieter Ernst, 25 Japanese Science Tom Ganiatsos and Lynn Mytelka Samuel Coleman 17 Trade and Investment in China 26 Capital and Labour in Japan The European experience The functions of two factor Edited by Roger Strange, markets Jim Slater and Limin Wang Toshiaki Tachibanaki and Atsuhiro Taki 18 Technology and Innovation in Japan 27 Asia Pacific Dynamism Policy and management for the 1550–2000 21st century Edited by A.J.H. Latham and Edited by Martin Hemmert and Heita Kawakatsu Christian Oberländer 28 The Political Economy of 19 Trade Policy Issues in Asian Development and Environment Development in Korea Prema-chandra Athukorala Jae-Yong Chung and Richard J. Kirkby 20 Economic Integration in the Asia Pacific Region 29 Japanese Economics and Ippei Yamazawa Economists since 1945 Edited by Aiko Ikeo 21 Japan’s War Economy Edited by Erich Pauer 30 China’s Entry into the World Trade Organisation 22 Industrial Technology Edited by Peter Drysdale and Development in Malaysia Ligang Song Industry and firm studies Edited by Jomo K.S., Greg Felker 31 Hong Kong as an International and Rajah Rasiah Financial Centre Emergence and development 1945–1965 Catherine R. Schenk 32 Impediments to Trade in 39 Law and Labour Market Services Regulation in East Asia Measurement and policy Edited by Sean Cooney, implication Tim Lindsey, Richard Mitchell and Edited by Christoper Findlay and Ying Zhu Tony Warren 40 The Economy of the Philippines 33 The Japanese Industrial Elites, inequalities and economic Economy restructuring Late development and cultural Peter Krinks causation Ian Inkster 41 China’s Third Economic Transformation 34 China and the Long March to The rise of the private economy Global Trade Edited by Ross Garnaut and The accession of China to the Ligang Song World Trade Organization Edited by Alan S. Alexandroff, 42 The Vietnamese Economy Sylvia Ostry and Rafael Gomez Awakening the dormant dragon Edited by Binh Tran-Nam and 35 Capitalist Development and Chi Do Pham Economism in East Asia The rise of Hong Kong, 43 Restructuring Korea Inc. Singapore, Taiwan, and South Jang-Sup Shin and Korea Ha-Joon Chang Kui-Wai Li 44 Development and Structural 36 Women and Work in Change in the Asia-Pacific Globalizing Asia Globalising miracles or end of a Edited by Dong-Sook S. Gills and model? Nicola Piper Edited by Martin Andersson and Christer Gunnarsson 37 Financial Markets and Policies in East Asia 45 State Collaboration and Gordon de Brouwer Development Strategies in China 38 Developmentalism and The case of the China–Singapore Dependency in Southeast Asia Suzhou Industrial Park The case of the automotive (1992–2002) industry Alexius Pereira Jason P. Abbott 46 Capital and Knowledge in Asia Changing power relations Edited by Heidi Dahles and Otto van den Muijzenberg 47 Southeast Asian Paper Tigers? 55 Understanding Japanese Saving From miracle to debacle and Does population aging matter? beyond Robert Dekle Edited by Jomo K.S. 56 The Rise and Fall of the East 48 Manufacturing Competitiveness Asian Growth System, in Asia 1951–2000 How internationally competitive International competitiveness and national firms and industries rapid economic growth developed in East Asia Xiaoming Huang Edited by Jomo K.S. 57 Service Industries and Asia- 49 The Korean Economy at the Pacific Cities Crossroads New development trajectories Edited by MoonJoong Tcha and Edited by P.W. Daniels, K.C. Ho Chung-Sok Suh and T.A. Hutton 50 Ethnic Business 58 Unemployment in Asia Chinese capitalism in Southeast Edited by John Benson and Asia Ying Zhu Edited by Jomo K.S. and Brian C. Folk 59 Risk Management and Innovation in Japan, Britain 51 Exchange Rate Regimes in East and the USA Asia Edited by Ruth Taplin Edited by Gordon de Brouwer and Masahiro Kawai 60 Japan’s Development Aid to China 52 Financial Governance in East The long-running foreign policy of Asia engagement Policy dialogue, surveillance and Tsukasa Takamine cooperation Edited by Gordon de Brouwer and 61 Chinese Capitalism and the Yunjong Wang Modernist Vision Satyananda J. Gabriel 53 Designing Financial Systems in East Asia and Japan 62 Japanese Telecommunications Edited by Joseph P.H. Fan, Edited by Ruth Taplin and Masaharu Hanazaki and Masako Wakui Juro Teranishi 63 East Asia, Globalization and the 54 State Competence and New Economy Economic Growth in Japan F. Gerard Adams Yoshiro Miwa 64 China as a World Factory 69 The Rise of the Corporate Edited by Kevin Honglin Zhang Economy in Southeast Asia Rajeswary Ampalavanar Brown 65 China’s State Owned Enterprise Reforms 70 The Singapore Economy An industrial and CEO approach An econometric perspective Juan Antonio Fernandez and Tilak Abeyshinge and Leila Fernandez-Stembridge Keen Meng Choy 66 China and India 71 A Basket Currency for Asia A tale of two economies Edited by Takatoshi Ito Dilip K. Das 72 Private Enterprises and China’s 67 Innovation and Business Economic Development Partnering in Japan, Europe Edited by Shuanglin Lin and and the United States Xiaodong Zhu Edited by Ruth Taplin 73 The Korean Developmental 68 Asian Informal Workers State Global risks local protection From dirigisme to neo-liberalism Santosh Mehrotra and Iain Pirie Mario Biggeri The Korean Developmental State From dirigisme to neo-liberalism Iain Pirie First published 2008 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Ave, New York, NY 10016 Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2007. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2008 Iain Pirie All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the
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