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Transformation of the South Korean State: Structural Changes of the State after the 1997 Financial Crisis

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Author Info
Bum-Soo Chon (Korea National Open University)
Erick Duchesne (State University of New York at Buffalo)
Sunhyuk Kim (Korea University)
Abstract

The entire process of Korean economic development in the 1960s, 1970s, and 1980s demonstrated the possibility of economic development in the third world. The 1997 financial crisis led many to affirm that the Korean state had lost its ability to deal with domestic economic and welfare policies. Using Cerny's three "shifts" in the character and nature of the welfare state, this paper examines changes in the Korean state after the economic crisis and assess whether globalization and neo-liberal economic restructuring have resulted in the emergence of a new type of state in Korea. The results suggest that although globalization undermines the economic and political conditions on which the developmental state was based, there is no indication that the developmental interventionist state, which had been a crucial feature of Korea's industrialized process over the past few decades, has actually weakened. Rather, as compared with previous regimes, the state has become more powerful and more interventionist. Despite a convergence in national economic policies toward the economic paradigm of the competition state, there are still unique domestic responses to globalization according to different national economic ideologies and past practices.

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Paper provided by University of Western Ontario, RBC Financial Group Economic Policy Research Institute in its series University of Western Ontario, RBC Financial Group Economic Policy Research Institute Working Papers with number 20042.

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Date of creation: 2004
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Handle: RePEc:uwo:epuwoc:20042

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Related research
Keywords: South Korea; financial crisis; globalization; models of economic development;

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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  1. Cerny, Philip G, 1995. "Globalization and the Changing Logic of Collective Action," International Organization, MIT Press, vol. 49(4), pages 595-625, Autumn.
  2. Cerny, Philip G., 1995. "Globalization and the changing logic of collective action," International Organization, Cambridge University Press, vol. 49(04), pages 595-625, September. [Downloadable!]
  3. Joseph E. Stiglitz, 1999. "Reforming the Global Economic Architecture: Lessons from Recent Crises," Journal of Finance, American Finance Association, vol. 54(4), pages 1508-1522, 08. [Downloadable!] (restricted)
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