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Why Corporatism Failed

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Why Corporatism Failed WHY CORPORATISM FAILED: COMPARING SOUTH AFRICA AND SOUTH KOREA YEJOO KIM DISSERTATION PRESENTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN THE FACULTY OF ARTS AND SOCIAL SCIENCES, AT STELLENBOSCH UNIVERSITY SUPERVISOR: PROF. JANIS VAN DER WESTHUIZEN December 2014 Stellenbosch University http://scholar.sun.ac.za DECLARATION By submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification. December 2014 Copyright © 2014 Stellenbosch University of Stellenbosch All rights reserved i Stellenbosch University http://scholar.sun.ac.za ABSTRACT In this study the aim is to examine what the impact of the imbalance in the power dynamics between the state, business and labour is on corporatist institutions in South Africa and South Korea. In both countries, the corporatist institutions have failed to bring the actors together and to resolve the various issues as these institutions were expected to do. When looking at the establishment of corporatist institutions in the two countries it is clear that the state had to incorporate the interests of labour in their decision-making process due to the increasing power of labour during the democratisation process. However, the current situation proves that the corporatist institutions in South Africa and South Korea have faced various problems. Therefore why the corporatist institutions in the two countries have not functioned properly is explored in this study. It was found that labour has been placed at a disadvantage compared to the state and business. The influence of labour as an agenda setter and a representative of labour has diminished. On the other hand the state and business, which used to form a coalition under the authoritarian governments, have started gaining power along with globalisation. The adoption of neo- liberal economic policies, has resulted in the fragmentation of labour, generating unemployment and irregular jobs. The imbalance of power between the actors has negatively affected the corporatist institutions. Under the circumstances, the corporatist institutions did not ensure that the voice of labour was heard and heeded. Instead of using corporatism, labour in South Africa tends to use the tripartite alliance in order to advance its interests. Labour in South Korea is likely to use mass action, and this tendency prevails in South Africa as well. Also, the corporatist institutions ii Stellenbosch University http://scholar.sun.ac.za have been criticised due to their lack of accountability and institutional problems; this has negatively affected their credibility. The corporatist institutions have become little more than names. In the cases of South Africa and South Korea, corporatism seems to have been adopted as a mere crisis response when the two countries faced political economic crises and it is seen as another control mechanism created by states experiencing democratisation. Furthermore, the imbalance in the relationship between actors negatively affected the corporatist institutions and in the end they collapsed. iii Stellenbosch University http://scholar.sun.ac.za OPSOMMING In hierdie studie word die impak van die magsbalans tussen die staat, sakesektor en georganiseerde arbeid op korporatisme in Suid-Afrika en Suid-Korea ondersoek. In beide gevalle het die korporatiewe instellings nie daarin geslaag om die nodige konsensus tussen die drie sleutel akteurs te bewerkstellig nie. As gevolg van demokratiseringsprosesse in beide state, en die toenemende invloed van arbeid, was die staat verplig om die belange van arbeid in besluitnemingsprosesse in ag te neem. Die korporatiewe instellings in Suid-Afrika, nl. NEDLAC en die KTC in Suid-Korea staar egter verskeie probleme in die gesig, Waarom die korporatiewe instellings nie behoorlik gefunksioneer het nie, word in die studie onder die loep geneem. Arbeid het in ‘n onderdanige posisie jeens die staat en die sake sektor te staan gekom aangesien die invloed van georganiseerde arbeid as ‘n agenda skepper en verteenwoordiger van arbeid afgeneem het. Aan die ander kant het die aanvanklike koalisie tussen die staat en die sakesektor gedurende die outoritere periodes - voor demokratisering - weer eens verstewig as gevolg van die invloed van globalisering. Namate neo-liberale ekonomiese beleide nagevolg is, het die vakbond beweging al meer gedisintegreer, werkloosheid het toegeneem en gelei tot werksgeleenthede wat al meer tydelik en ongereguleer is. Die ongelyke magsbalans tussen die rolspelers het die korporatistiese instellings negatief beinvloed. Onder die omstandighede, kon die korporatistiese instellings nie daarin slaag om aan die stem van arbeid gehoor te gee soos wat gehoop is nie. In plaas daarvan om dus van die korporatistiese instellings gebruik te maak, het arbeid in Suid-Afrika eerder van die vakbond iv Stellenbosch University http://scholar.sun.ac.za beweging se rol in die regerende alliansie gebruik gemaak om beleid te probeer beinvloed. Arbeid in Suid-Korea, soos in Suid-Afrika, is ook meer geneig om van massa aksie gebruik te maak. Daarbenewens is die korporatiewe instellings daarvan beskuldig dat hulle nie deursigtig is nie en gebuk gaan onder institutionele gebreke, wat die geloofwaardigheid van die instellings ondermyn het. In die Suid-Afrikaanse en Suid-Koreaanse gevalle blyk dit dat korporatisme bloot as ‘n soort ‘krisis reaksie’ tot ekonomiese en politieke probleme ontwikkel het – in samehang met demokratisering - en nie as diepgaande beieldsprosesse in eie reg nie. Die gebrek aan ‘n magsbalans tussen die drie rolspelers het daartoe gelei dat die korporatiewe instellings in beide gevalle effektief tot niet gekom het. v Stellenbosch University http://scholar.sun.ac.za ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor, Prof. Janis van der Westhuizen. Without his excellent guidance and unwavering support, I would not have been able to complete this dissertation. I especially appreciate that he shared so much of his time and effort during the final stage of the writing process. Thank you again for believing in me and encouraging me. I would like to thank Dr Sven Grimm, the Director of the Centre for Chinese Studies. Thanks to his support and understanding, I was able to have space and time for this dissertation. Also, since I have started my career as a researcher at the Centre, he has nurtured me and given me many opportunities, encouraging me to make use of them. Without my parents’ understanding and support, the past six years living in South Africa would have not been possible. My sincere thanks should go to Kim Yu-il and Lee Hyo-jung. From the beginning, they supported my decision to study further in South Africa. In spite of the physical distance between South Africa and South Korea, I deeply appreciate their friendship. Kim Su-weon is another individual to whom I owe thanks. I appreciate her honesty and great sense of humour. She is also about to complete her dissertation, and I am grateful that we have shared the important moments together. I hope that we can continue to support one another through the good and bad days in the future. vi Stellenbosch University http://scholar.sun.ac.za Anna-britt Rage is another significant individual that has instilled confidence and courage in me. Maria Huber, a great housemate, makes me feel at home in South Africa. I appreciate her warmth and sincerity. I would like to thank Mrs Erica Goldstone. After having a long day, a conversation with her always makes me see the positive side of life and embrace the next day. Ms Melanie Baily and Ms Nuša Tukić have helped me with technical language editing. Mrs Magda van Niekerk and Mr Fred Pfaff at the Political Science Department have helped me whenever I have needed their assistance. They always made me feel at home with big hugs and kind words. Last but not least, I would like to thank my colleagues and friends at the Centre for Chinese Studies. Especially, Meryl Joy Burgess has helped me keep my sanity at the final stage of writing this dissertation. I do appreciate healthy conversations with her. She has also opened my eyes to various issues ranging from the social issues of South Africa to family recipes, all of which enrich my life. vii Stellenbosch University http://scholar.sun.ac.za TABLE OF CONTENTS DECLARATION .................................................................................................................................... i ABSTRACT ........................................................................................................................................... ii OPSOMMING ...................................................................................................................................... iv ACKNOWLEDGEMENTS ................................................................................................................. vi TABLE OF CONTENTS ................................................................................................................... viii LIST OF FIGURES ............................................................................................................................ xii LIST OF TABLES ............................................................................................................................
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