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State-Controlled Economies: South Korea and Indonesia

  • David Lockwood
Chapter
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Abstract

The newly-industrializing (or, in some cases, industrialized) countries (NICs) of East Asia are an extreme case of state intervention rather than statism, but many of the challenges with which the world market confronts statist economies are today proving a problem for the NICs. There is pressure on their role as economic controllers. The developmental states in the region were given their initial opportunity by the processes of globalization. But globalization, in turn, has weakened and disrupted the strong states of East Asia. In this chapter, I will examine the military origins of the developmental states, the role of those states in development and their contribution to the recent economic crisis.

Keywords

Foreign Investment World Market Private Capital Capitalist Class South Korean Government 
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Notes

  1. 1.
    Economist Intelligence Unit, Country Profile: South Korea and North Korea, 1996–7, p. 11; Colin Sparks, ‘The Eye of the Storm’, International Socialism, No. 78, Spring 1998, pp. 3–37 at pp. 8, 11.Google Scholar
  2. 2.
    Economist Intelligence Unit, Country Profile: Indonesia, 1995/6, p. 18; Hal Hill, The Indonesian Economy since 1966, Cambridge: Cambridge University Press, 1996, pp. 5, 19; Sparks, ‘Eye of the Storm’, p. 8.Google Scholar
  3. 3.
    Alice H. Amsden, Asia’s Next Giant: South Korea and Late Industrialization, New York: Oxford University Press, 1989, p. 50.Google Scholar
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    Stephan Haggard, Byung-Kook Kim and Chung-In Moon, ‘The Transition to Export-Led Growth in South Korea: 1954–1966’, Journal of Asian Studies, 50 (4), November 1991, pp. 850–73 at p. 866.CrossRefGoogle Scholar
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    Quoted in Mark L. Clifford, Troubled Tiger, New York: M.E. Sharpe, 1994, p. 113.Google Scholar
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    Richard Robison, Indonesia: the Rise of Capital, Sydney: Allen and Unwin, 1986, pp. 97, 119–20.Google Scholar
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    Alice H. Amsden, ‘The State and Taiwan’s Economic Development’, pp. 78–106 in Peter Evans et al. (eds.), Bringing the State Back In, Cambridge: Cambridge University Press, 1985 at p. 78.CrossRefGoogle Scholar
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    Nigel Harris, Socialist Review, No. 101, September 1987, p. 10.Google Scholar
  9. Eun Mee Kim, Big Business, Strong State, Albany: SUNY, 1997, p. 94.Google Scholar
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    Suk Mo Koo, ‘Korea’s Big Business Groups and International Competitiveness’, pp. 151–66 in Sung Yeung Kwack (ed.), The Korean Economy at a Crossroad, Connecticut: Westport, 1994; Clifford, Troubled Tiger, pp. 78–80.Google Scholar
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    Ku-Hyun Jung, ‘Changing Business and Government Relations in Korea’, Journal of Far Eastern Business, 1 (3), Spring 1995, pp. 98–112.Google Scholar
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    See Nigel Harris, ‘New Bourgeoisies?’, Journal of Development Studies, 24, 1988, pp. 237–49; Business Week, 24 February 1992, p. 18.CrossRefGoogle Scholar
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    Paul Krugman, ‘The Myth of Asia’s Miracle’ (1994) in Pop Internationalism, Cambridge, Mass.: MIT Press, 1997, p. 175.Google Scholar
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    See Paul Krugman, ‘Saving Asia: It’s Time to Get Radical’, Fortune, 7 September 1998; ‘Will Asia Bounce Back?’, web/mit.edu.krugman/www; Javad Shirazi (World Bank East Asian Regional Manager), ‘The East Asian Crisis’, www.worldbank.orgGoogle Scholar
  15. David M. Jones, ‘Can Tigers Change their Stripes?’, The World Today, 54 (2), February 1998, pp. 32–4.Google Scholar

Copyright information

© David Lockwood 2000

Authors and Affiliations

  • David Lockwood
    • 1
  1. 1.Flinders University of South AustraliaAustralia

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