1. Manufacturing
industry
dominated
by
chaebols.
They
are
dependent
on
state-­‐owned
bank
loans.
SOUTHKOREA
To what extent do East Asian
experiences resonate with
neoliberal policy prescrip6ons?
INDUSTRIALISATION
In east Asia
What are neoliberal policy prescriptions?
FREEDOM
Freedom
for
capital,
goods
and
services.
The
removal
of
any
impediments
to
capital
mobility.
The
freedom
is
from
the
state
or
government.
REDUCING EXPENDITURE
Neoliberalism
advocates
reducing
public
expenditure
for
social
services,
such
as
health
and
education,
by
governments.
DEREGULATION
Removing
restrictions
on
businesses
and
allowing
market
forces
to
act
as
a
self-­‐regulating
mechanism.
PRIVATISATION
The
privatization
of
public
goods,
resources
and
services
and
the
end
of
the
practice
of
state
nationalisation
of
industries.
South
Korean
industrialisation
and
growth,
through
the
state’s
wide-­‐ranging
Industrial
Policy,
is
a
key
example
of
how
neoliberal
policy
prescriptions
were
rejected
in
favour
of
state
control
(Edwards,
1992).
How do East Asian experiences
resonate with these prescriptions?
Contrary
to
the
dominant
neoliberal
narrative,
East
Asian
countries
were
highly
pervasive
interventionist
regimes;
the
East
Asian
experience
was
a
rejection
of
neoliberal
policy
prescriptions
(Biersteker
1995;
Dasgupta
1998).
CASE STUDY: SOUTH KOREA
OWNERSHIP
INDUSTRIAL POLICY
Heavy
government
investment
with
the
public
sector
playing
an
active
role
in
construction.
PHYSICAL INFRASTRUCTURE
Nationalised
banking
sector
provided
long-­‐term
Vinance
to
industry
at
preferentially
low
rates.
FINANCE OF INDUSTRY
Wide-­‐ranging
import
restrictions
&
protectionism
through
import
duties,
raising
the
price
of
imports.
TRADE POLICY
State
engaged
in
protectionism:
tariff
walls,
import
restrictions
and
‘local
content
requirements’.
DEREGULATION
Indigenous
industries
supported
by
subsides,
tax
breaks,
duty-­‐free
imports,
investment
in
R&D.
REDUCING EXPENDITURE
Strategic
industries
and
central
banking
systems
nationalised
to
provide
leverage
and
cheap
credit.
PRIVATISATION
No
freedom
from
the
state.
It
was
this
‘hands
on’
approach
by
the
state
that
produced
the
‘miracle’.
FREEDOM
STATE POLICIES