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Global South 2007-8

Global South 2007-8. Lecture 6: November 2, 2007 Developmental State. Courtesy: http://www.olemiss.edu/courses/pol387/koreadev.ppt#256,1,Development in South Korea. Golden Era of Growth. Park: 1961-79 year per capita GDP (US$) export (US$)

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Global South 2007-8

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  1. Global South 2007-8 Lecture 6: November 2, 2007 Developmental State

  2. Courtesy: http://www.olemiss.edu/courses/pol387/koreadev.ppt#256,1,Development in SouthKorea

  3. Golden Era of Growth • Park: 1961-79 year per capita GDP (US$) export (US$) 1962 87 56.7 million 1980 1,503 17,500.0 million 2001 8,918 150,440.0 million

  4. Questions • How did this growth occur? • Why did it not occur anywhere else? • Is this growth = development

  5. What explains growth Kay: • Relationship between agrarian and industrial structure • Nature of technological change • Pattern of structural change • Intersectoral resource flow Is anything missing in this analysis?

  6. Historical structures (Cox) Social forces Land relations? Industrial capitalism? Forms of state Democracy/dictatorship “developmentalism” World Orders Hegemonic/non-hegemonic

  7. How did South Korea grow? Main views • Export-led growth • State interventionism • Nature of state intervention: what role did authoritarianism play?

  8. Japanese colonialism (1910-45) • Colonial educational system • Japanese language and culture • Occupation of land • Industrialization and Modernization

  9. Independence • 1948 August, Republic of Korea established • 1948 September, Democratic People’s Republic of Korea established • Premier: Kim Il-Sung • President Rhee Syngman (1948 - 60) resigned amid popular protests • 1961 military coup by Park Chung-Hee

  10. What did Park do? • Land reform • Confiscate wealth • Envisioned a transformation from merchant capital to industrial capital • Established a bureaucracy and an ‘autonomous’ developmental state

  11. Importance of Land Reform • What are land reforms? • What are the differences between land reforms in Latin America and East Asia? What is the author’s main argument about land reforms?

  12. Difference between East Asia and Latin America • “squeeze” agriculture without stifling growth • How? By curbing the power of the landlords • In Latin America this was not possible • Labour that was pushed out of land did not get work

  13. What is state autonomy? • The ability of the state to define its own goal (in most cases modernization/state capitalism) • The ability of the state to implement this set of goals despite opposition from particular interest groups

  14. “Developmental state” The opposite of a “liberal” state, where the state is not a direct participant in the economy or society. It performs certain minimal roles. Its goals derive from the goals of the society. A developmentalist state on the other hand actively shapes society, social relations and social goals.

  15. Developmental state Centerpiece is the bureaucracy which actively adopted goals and strategies. It then allocates resources and roles to different social classes to fulfill these objectives. In this case rather than the state reflecting demands of social classes, social classes are shaped according to state goals

  16. Ingredients of a developmental state • Autonomy • Coordination • Authoritarian political structure • Weak social formations

  17. Strategies of developmentalism • Industrialization Strategies Land reform Exports Import substitution Skill development High rates of labour absorption

  18. India • Growth but not ‘development’ • What does the author mean?

  19. India (2) • Conventional wisdom – India had no growth or the ‘hindu rate of growth’ before the nineties • Author’s suggestion: earlier growth is underestimated and recent growth is exaggerated • What is the major difference

  20. India (3) • The major difference lies in the nature of the state-capital relationship • Earlier phase: development of capitalism through intervention • Recent phase: realignment of state policy to accommodate maturity of industrial capitalism

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