The Politics of Economic Reform in South Korea by Tat Yan Kong

Author:Tat Yan Kong [Kong, Tat Yan]
Language: eng
Format: epub
ISBN: 9780415145039
Barnesnoble:
Publisher: Taylor & Francis
Published: 2000-09-28T00:00:00+00:00

Conclusion

This chapter has examined the relationship between democratisation and the evolution of development policy. Democratisation was the consequence of the success of past development policies implemented by authoritarian regimes. In transforming the social structure, these policies created the typical prerequisites for democratisation (e.g. high literacy, a well developed middle class, material affluence) identified by modernisation theorists. In that sense, it could be said, authoritarianism was the victim of its own success.

Korea's democratisation, however, did not signal a dash to the complete political and economic liberalisation seen elsewhere. In those countries where democratisation had led to far-reaching political and economic transformation, authoritarianism was the victim of its own failure, a failure that led to public demands for radical economic alternatives under new leadership. In contrast to the former authoritarian regimes of Eastern Europe or Latin America, Korea's was not discredited by economic failure, and its representatives (i.e. Roh Tae-Woo and the DJP) were in a strong position to survive the test of open political contestation. Apart from enjoying the benefits of buoyant economic conditions (on the basis of which redistributional demands could be accommodated), the ruling party had the benefit of its own solid electoral base in the most populous region. Moreover, the legacy of anti-communism and the electoral appeal of the conservative professional politicians (and the corresponding electoral weakness of the radical forces such as the student movement) helped to ensure that there would be a high degree of continuity in post-democratic political and economic arrangements. Economic success did not sustain authoritarian rule (as President Chun Doo-Hwan might have hoped), but it did steer the transition from authoritarianism along a gradualist route distinct from the radical transitions to liberal capitalist democracy attempted elsewhere.

Within the model of gradualist economic reform initiated in 1981, democratisation brought with it a new official emphasis on redistribution. In not diverting resources away from investment, the absence of proactive redistributive policies was a strength of the Korea Inc. development model. On the other hand, in light of the growing affordability of social programmes and the disproportionate benefits obtained by those who controlled the economy (e.g. chaebol families and senior government officials), the absence of pro-active redistributive measures was a source of de-legitimisation for the authoritarian regime. The consolidation of the new democratic regime depended on its ability to placate the social and economic grievances that stemmed from the authoritarian era. With the democratic state no longer having the capacity to impose changes on a reluctant society like its authoritarian predecessor, it was officially recognised that sustained development would have to be based on greater popular consensus (in particular between organised labour and business) than previously. It was against the background of such considerations that the democratic regime (headed by reconstructed former authoritarians) implemented redistributional policies and then made tentative openings to organised labour.

The gradualist model of economic and political reform also had its costs. In the previous chapter, it was shown how the vital role of the chaebol in leading the post-1980 recovery resulted in the

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