Whither the Developmental State in South Korea? Balancing Welfare and Neoliberalism

Abstract

Scholars of political economy have been debating the role of the Korean state in the economic development of the country, as the characteristics of a developmental state, a neoliberal state and/or a welfare state have appeared simultaneously in the various governments’ policies since the 1990s. This paper argues that although the nature, degree and extent of government intervention has varied from administration to administration, the basic stance of a developmental state has been retained while neoliberal and welfare policies have been used concurrently to further economic and social development. This coexistence of contradictory approaches reflecting alternative market economic systems was the product of a combination of government policies that has for the past 20 years provided the Korean government with the ability to deploy flexible policy mixes in response to changes in the political and economic environment and to maximise the outcomes of developmental policies.     

Industrial Warriors: South Korea’s First Generation of Industrial Workers in Post-Developmental Korea

This study analyses the skills upgrading programmes of South Korea’s first generation of skilled workers, focusing on their political and social trajectories from bulwarks of the developmental regimes up until 1987, to a “labour aristocracy” of regular workers employed mainly in large companies in heavy industries in South Korea. The term “labour aristocracy” highlights how the “regular workers”, employed mostly in monopolistic large enterprises in heavy industries, have better wages, job security and other social benefits than “non-regular workers” and other regular workers employed in small and medium companies. It argues that these “Industrial Warriors” were the product of the Korean developmental state’s creation of an egalitarian social contract, and that the political and social trajectories since then must be seen in its totality. This is necessary because it manifests the profound change in Korea’s political economy from state-grassroots synergistic developmentalism to neoliberal industrial capitalism, wherein having a regular job has become a substantial asset in an era of non-regular employment. This study contributes to the literature on the political economy and to sociological discussion of the Korean developmental state that continues to this day and is far from over.     

Neoliberalism,the Developmental State and Civil Society in Korea

Following the Asian economic crisis of the late 1990s, some scholars predicted that the introduction of neoliberal ideas and policies would result in the definitive passing of the Korean developmental state. Despite these predictions, Korean state elites have retained their influential position as economic managers by, for instance, practicing a revised form of industrial policy. Neoliberal reform has, however, had significant social implications. Rather than neoliberalism acting as a democratising force that curtails the power of the state, this article illustrates that the Korean state has used the reform agenda to justify an expansion of its powers. The state presented itself as an agent capable of resolving long-standing economic problems, and of defending law and order. By doing so, the state reduced the political space available to non-state actors. The article concludes that for some states, neoliberalism is a means of retaining economic and political influence, and that former developmental states may be particularly adept at co-opting elements of civil society into governing alliances.     

Sub‐state nationalism and the welfare state: Québec and Canadian federalism

ABSTRACT. This article examines the relationship between sub‐state nationalism and the welfare state through the case of Québec in Canada. It argues that social policy presents mobilisation and identity‐building potential for sub‐state nationalism, and that nationalist movements affect the structure of welfare states. Nationalism and the welfare state revolve around the notion of solidarity. Because they often involve transfers of money between citizens, social programmes raise the issue of the specific community whose members should exhibit social and economic solidarity. From this perspective, nationalist movements are likely to seek the congruence between the ‘national community’ (as conceptualised by their leaders) and the ‘social community’ (the community where redistributive mechanisms should operate). Moreover, the political discourse of social policy lends itself well to national identity‐building because it is typically underpinned by collective values and principles. Finally, pressures stemming from sub‐state nationalism tend to reshape the policy agenda at both the state and the sub‐state level while favouring the asymmetrical decentralisation of the welfare state.     

The Dualism of Urban Governance in Denmark

The article argues that the present Danish urban policy and urban democracy can be characterized by a striking duality and tension between: (1) Participatory empowering welfare oriented community strategies, which targets deprived districts and neighbourhoods, which are based on notions of the inclusive city. This trend is founded on priorities of radical democracy, social justice, inclusion and citizens empowerment; (2) Neo-elitist/corporative market driven strategic regional and global growth strategies, which are based on notions of the Entrepreneurial Globalized City and where urban policy becomes a question of facilitation of the “growth machine” and neo-liberalized urban authoritarianism. The article discusses dilemmas for overcoming the growing tension between elitist neo-corporate growth regimes, which are in operation via “Quangoes” and closed elite networks, and community empowerment and welfare oriented policy in the age of globalization. Taking the stand of community empowerment and welfare policy, the article conclusively discusses ways to shape a new inclusive politics of difference including using “positive selectivism” as part of an empowerment strategy.     

Politicians,Parties, and the Persistence of Weak States: Lessons from the Philippines

Under what conditions will politicians strengthen state capabilities through bureaucratic reform? This article presents a principal–agent model of state capacity that shows that unless competition to influence policy is largely confined to a single dimension, politicians have no incentive or ‘political will’ to adopt bureaucratic reform. The validity of this model is tested using the experience of the Philippines in the period 1946–72. It is found that politically relevant groups in the Philippines were competing to influence policy over issues of social welfare, economic nationalism and control over public spending, and that groups' demands over these issues failed to align along a single dominant dimension. Consistent with expectations derived from the principal–agent model, there were numerous calls for and attempts to improve bureaucratic performance, but the calls went unheeded and the attempts failed miserably. The study highlights a lesson of potential use to countries currently undergoing democratization. It argues that state capacity is not a function of insulating the state from societal forces, but rather of clarifying lines of authority and accountability in the hierarchy of principal–agent relationships between society, politicians and bureaucrats.     

新自由主义的危机与都市治理——从全球到地方

自2008年的经济危机之后,新自由主义作为西方国家和城市治理的主要手段也受到根本性的挑战,这些政治经济的失败,最终表现在都市空间的治理当中。本文将以新自由主义的扩张案例入手,通过国内外都市空间治理的实践经验,剖析新自由主义所带来的短期和长期的政治经济危机后果,并讨论全球不同空间尺度当中撤退空间的治理与挑战。新自由主义的问题不仅存在于西方国家,在网络时代和全球化的趋势下,资本的累积是在全球范围内产生危机,亚洲国家以及中国也必须思考如何应对危机,以及探索后新自由主义的发展道路。最后,文章从全球到地方的撤退空间讨论当中,反思新自由主义作为一种全球性的都市治理政策在全球的流动,认为就后政治的城市来说,要超越新自由主义的局限还有待观察,中国城市走向后新自由主义的治理转型就必须勇于摆脱英美社会脉络所产生的都市治理论述,建构符合地方社会脉络的理论和实践。     

Malthus,gender and the demarcation of ‘dangerous’ bodies in 1996 US welfare reform

This article argues that populationism as a gendered narrative provides a crucial rhetorical architecture for welfare reform debates in the USA during the 1990s. Populationism, which Joni Seager defines as ‘the dogma and the rhetoric of population alarmism and population control,’ subtly legitimized efforts to control and marginalize poor women's bodies in the context of welfare reform. The populationism underlying welfare reform hinges on a deep fear of engulfing social chaos if ‘we’ do not check the fertility of poor women, and particularly women of color. This article historically situates contemporary welfare politics by tracing in some detail how Malthus' original writings on population were constitutively linked to debates about ‘poor relief’ in early nineteenth century England. Exploring the gendered linkages between Malthus and social welfare policy in the 1800s allows us to understand how Malthus continues to haunt discourses about social welfare in the 1990s and beyond, with direct consequences for poor women and particularly poor women of color.     

China's Household Registration System under Reform

China's household registration system is the central element in a policy of rapid industrialization with low urbanization. Figures on the non-agricultural population show that the system was initially successful, but less so during the 1980s. As a result, a number of reforms were introduced, which are described in some detail here. The registration system must be viewed as playing three interrelated roles: it is an instrument of development policy, aimed at keeping urban populations small while fostering industrial development; a social institution which rigidly divides Chinese society into a rural and an urban segment; and an instrument of state control, which the state employs to cultivate client groups. This article further argues that the contradiction between the need to adapt the system to changing realities, dictated by its developmental role, and the tenacity of the vested interests inherent in the social institutional role of the system, form a major obstacle to fundamental reform.     

Economic crisis in Korea and the degraded developmental state

This article analyses the Korean developmental state since the late 1990s, and argues that the state has continued to play a weighty role in the economy. The state guided industrial and financial restructuring after the Asian economic crisis, and intervened to stimulate the economy during the 2008 global financial crisis. In doing so, state elites have displayed a distinctive form of economic leadership that is largely consistent with the developmental state. Rather than focusing predominantly on performance-related indicators of state strength such as growth rates, this article analyses the deeper aspects of the developmental state, specifically its internal functions and its collaboration with business. The article brings politics back into analysis of the developmental state by questioning the assumption that strong economic performance is necessary for the maintenance of close ties between the state and chaebol. Instead, economic performance is better understood as a predictor of patterns of conflict and cooperation. Long-standing ties between the state and big business have endured two significant economic crises, even if the performance of the developmental state has been degraded compared to earlier decades.     

State Withdrawal and the Impact of Marketization on Rural Russia

The role of the state is greatly misunderstood in post-Soviet affairs. In particular, neither urban bias nor corporatist models help to understand the impact of reforms in rural Russia. The article argues that the best way to understand the impact of marketization on the rural sector is through the concept of state withdrawal. State withdrawals is distinct from state weakness, the former reflecting policy choices and the latter concerning state capacities. This article focuses on several central economic aspects from which the state has withdrawn: state control over wholesale food trade and purchase prices, state regulation of the terms of trade, and state direction over rural capital investment policy. State withdrawal reflects political choices. Policy choices flow from ideological principles that emerge from neoliberal philosophical conceptions of the role of the state in the economy. As a result of neoliberal philosophies of the state, the rural sector has experiences sever economic and social consequences.     

Welfare Reform and Economic and Housing Capacity for Low-Income Households, 1997–1999

The 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) marked the continued devolution of social policy to state and local government in addition to restructuring an ailing welfare system. Despite concerns that welfare recipients would find greater obstacles to economic stability as a result, declining welfare rolls have been accompanied by declining poverty rates over the past seven years. An important question is whether low‐income families have gained greater employment and housing capacity following welfare reform. Moreover, does capacity vary across states with different welfare policies? In addition, do families face greater economic vulnerability with respect to food scarcity and health care? This article uses the data from the 1997 and 1999 waves of the National Survey of America's Families to systematically assess differences in capacity and vulnerability among lower income families across different policy regimes. Using two measures of capacity for housing and employment, and quality of life, findings suggest that more stringent welfare rules are related to greater job and housing attainment but a reduced quality of life.     

Revisiting the South Korean developmental state after the 1997 financial crisis

This study reassesses the conventional wisdom surrounding the developmental state of South Korea (hereafter Korea) since the 1997 Korean financial crisis. The conventional wisdom is that, as a result of the continued structural reforms prompted by the crisis, the Korean developmental state, inherently characterised by active or direct state intervention, strong economic and industrial policies, the chaebol-oriented economic policy, and labour exclusion, has finally begun to dissolve in earnest. In this study, we have considered whether that is really the case and also which theoretical implications can be drawn from this consideration. Analysis of the Korean developmental state following the 1997 crisis has indicated that, quite contrary to conventional wisdom, the developmental state has continued to prevail as a core policy framework of the Korean administrations even after the crisis. There is no doubt that the continued structural and market reform after the crisis certainly undermined the Korean developmental state to a certain degree, but that does not mean the beginning of the end of the Korean developmental state at all. For much evidence strongly indicates that the Korean developmental state still remains intact and strong despite the structural reforms, on account of the successive Korean governments’ assiduous and deliberate efforts to maintain and reinforce it. Even after the crisis, the Kim Dae-Jung and post-Kim regimes have hardly abandoned many of their market interventionist policies. Such market interventionist policies, which were routinely practised under the military regime in the 1960s and 1970s, diametrically contravene the argument that the Korean developmental state has begun to dissolve as a result of structural reform after the 1997 crisis. Contrary to conventional wisdom, the Korean developmental state persists as usual. All this information, then, suggests that path dependence is in action in the case of the Korean developmental state, and this suggests a further hypothesis that the Korean developmental state is very likely to persist in the future as well, despite increasing globalisation pressure, given the strong path dependence.     

The Redevelopmental State: Governing Surplus Life and Land in the ‘Urban Age’

This article theorizes changing configurations of development governance emerging as states attempt to reconcile two contradictory pressures of global urbanization: dispossessing capitalist accumulation and demands for inclusive welfare. It introduces the ‘redevelopmental state’ as a dynamic spatio‐political framework for understanding how hegemonic rule is tenuously forged amid potentially volatile urban land struggles. Whereas Northern urban redevelopment theories are less attentive to post‐colonial urbanization processes and most developmental state scholarship has not focused on cities, the redevelopmental state offers an alternative conceptualization. It centres on how emerging regimes of territorial rule, development and political participation contour access to land and social benefits in Southern cities. Forged at key conjunctures of social pressure, these redevelopmental state spaces work through and beyond formal policies and institutions, and articulate with nationalist cultural politics of belonging and aspiration that foster consent for redevelopment while also legitimating exclusions, violence and dispossession. A case study of Mumbai illustrates redevelopmental state spaces that suture ethno‐religious nationalism, urbanized accumulation and populist welfare to unevenly distribute life capacities, garnering both cooperation and contestation. The article concludes by suggesting ways this spatially attuned framing can provide insights into the recent rise of ethno‐nationalism and authoritarian populism around the world.     

Revisionism Reconsidered: 'Property-owning Democracy' and Egalitarian Strategy in Post-War Britain

Revisionist socialists of the 1950s and 1960s are typicallydepicted as advocates of the ‘Keynesian welfare state’route to economic equality. This article argues that this isan oversimplification: while the revisionists supported thewelfare state, they also aimed to promote equality by redistributingprivate property and expanding social ownership, endorsing anegalitarian version of a ‘property-owning democracy’.The article first discusses the political ideals and calculationsthat motivated the revisionists’ interest in this modelof egalitarian strategy and then examines in turn the threemutually reinforcing strands of policy that this goal generated:greater progressive taxation of wealth; measures to diffuseprivate property ownership and access to marketable skills;and the expansion of novel forms of social ownership.     

Society and politics in China today

China's social and economic transformations, and their growing global impact, have prompted a plethora of books. This review article examines five recent books in Polity's China today series as a basis for discussion about society and politics in China. The series is structured around applying different themes or concepts to China, and these five look at consumption, social welfare, class, ethnicity, and the nature, role and performance of the Communist Party and state. The books provide well‐researched and balanced accounts of developments in China, especially since the era of ‘reform and opening up’ began in 1978. The article argues that important themes of the books—the growing discourse of consumption, the depoliticization of class as socio‐economic strata, the Party‐state as a pragmatic provider of citizen services, and the role of the private sector in the provision of social welfare—are all features of the current phase of a globalized capitalist modernity, and concludes that while the country wants to be seen as different, the accounts of politics and society in this series suggests that China today offers more of an alternative within that modernity than an alternative to it.     

Immigrant Inclusion in the Safety Net: A Framework for Analysis and Effects on Educational Attainment

Across states, there is substantial variation in the degree to which immigrants and their children are offered public assistance. We present a theoretical framework for analyzing the effects of policy decisions about immigrant inclusion. We apply the framework to investigate the effect of the state safety net on educational attainment. We focus on the years following welfare reform in 1996, when states gained considerable autonomy over welfare policy, including decisions about the eligibility of immigrant residents. Leveraging state‐level data from before and after reform, we estimate a difference‐in‐difference model to identify the effect of variation in immigrant inclusivity on educational attainment. We find that when states broaden the inclusivity of the social safety net to immigrants, young Latinos are more likely to graduate from high school. This effect is present beyond the group of Latino residents who receive additional benefits, suggesting that policy decisions about immigrants spill over to broader communities and communicate broader messages about social inclusion to racial and ethnic groups. We find similar patterns among Asian youth, but not among black and non‐Hispanic white youth. We conclude that immigrant inclusion has consequences for the life prospects of the growing population of youth in high‐immigrant ethnic groups.     

The Role of Public Input in State Welfare Policymaking

This article reports findings from a survey of 257 state officials involved in public assistance policymaking in the American states during the early to mid-1990s. Respondents were asked to comment on the impetus for welfare reform, on methods employed to gauge public preferences, and on sources of policy ideas. These officials, including state legislators, social service agency directors, and senior advisors to governors, revealed a variety of forums for gathering public input. Although few respondents affiliated with elective office reported significant direct electoral challenges on welfare issues, they often cited constituent contacts regarding welfare reform.     

Immigrants,Morality and Neoliberalism

This article critiques the liberal and state‐centred view of morality and governance as applied to immigrants. It argues that the alternative perspective provided by some moral philosophers and political theorists can be combined with analysis of the current global economic and political order to outline a framework for protecting the welfare and human rights of the immigrants. It also argues that this framework brings out the commonality of interests of workers in host countries and immigrants in re‐empowering the state to provide for the comprehensive social security that the neoliberal state has trashed.