north korea and south korea different perspectives on globalization and its effects l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
North Korea and South Korea: Different Perspectives on Globalization and Its Effects PowerPoint Presentation
Download Presentation
North Korea and South Korea: Different Perspectives on Globalization and Its Effects

Loading in 2 Seconds...

play fullscreen
1 / 15

North Korea and South Korea: Different Perspectives on Globalization and Its Effects - PowerPoint PPT Presentation


  • 876 Views
  • Uploaded on

North Korea and South Korea: Different Perspectives on Globalization and Its Effects. A ndras Konya A dam Schlegel A manda Baldwin. Introduction. Compare the effects of globalization (or lack thereof) on two comparable countries with similar culture, history, and definite point of separation.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'North Korea and South Korea: Different Perspectives on Globalization and Its Effects' - HarrisCezar


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
north korea and south korea different perspectives on globalization and its effects

North Korea and South Korea: Different Perspectives on Globalization and Its Effects

Andras Konya

Adam Schlegel

Amanda Baldwin

introduction
Introduction
  • Compare the effects of globalization (or lack thereof) on two comparable countries with similar culture, history, and definite point of separation.
    • Pinpoint strengths/weaknesses of globalization
    • Method, not apples/oranges
history korean war
History: Korean War
  • Soviets and Americans decide to divide Korea into their own sphere of influence
    • North and South (1948)
  • Secretary of State Dean Acheson neglected to include Korea in the US sphere of influence in Asia.
    • Kim Il Sung took initiative to invade the South (1950)
      • not Stalin but Stalinist
  • War ends ends in stalemate, 38th parallel, DMZ
    • Both countries are ruined in the similar manner
    • Ideal comparison
    • Each embraces different ideology: totalitarian vs. authoritarian
path to globalization
Path to Globalization
  • Following the Korean War, a decade of political turmoil begins
  • First President Syngman Rhee ousted from office (1960)
    • rigged elections for vice president cause student riots
  • Democracy not initiated
    • military coup d’etat, Park Chunghee takes over
  • Park Chunghee begins to build South Korea into economic power
    • stablity but still not democratic
    • tool: chaebol
chaebol system
Chaebol System
  • Conglomerate
    • large corporation with many unrelated subsidiaries
    • centrally planned though private
    • lack of input from minor shareholders
    • financial security for all companies involved
park s economic plans for chaebols
Park’s Economic Plans for Chaebols
  • creation of export-oriented industries
  • creation and fostering of heavy industry
  • maintenance of anti-union behavior
  • protection of domestic market
    • pegging won to dollar
  • chaebols are major force in the South Korean economy
    • 1960’s to 1990’s
    • big enough to utilize limited resources effectively
    • government contracts and subsidies
top chaebols in south korea
Top Chaebols in South Korea
  • Hyundai
    • Automobiles
    • Engineering, construction, shipbuilding and industrial activity
    • Finances
  • Samsung
    • Electronics
    • Petrochemicals
    • Construction (Petronas Towers in Malaysia)
  • LG
    • Home appliances and electronics
    • Petrochemicals and chemicals
emerging globalization advantages
Emerging Globalization (Advantages)
  • Through the chaebols, South Korea emerged as an export leader of the world
    • Import raw materials to manufacture exports
  • Industrialization and Service Economy
  • Higher standard of living
    • better education
    • more material possessions
    • increased leisure time
    • GDP skyrockets from third world equivalent to Western European standards
emerging globalization disadvantages
Emerging Globalization (Disadvantages)
  • Profits appease populace as long as they are positive
    • economic downturn leads to civil disobedience and revolution
      • no democratic process or structure to deal with problems
      • political stability dependent on economic situation
    • authoritarian until 1987, numerous revolutions, undemocratic
    • chaebols are undemocratic by nature
decline of chaebols
Decline of Chaebols
  • Ultimate decline of chaebols
    • Too big to manage effectively
    • Core competency (unrelated industries)
  • Decline
    • rise in labor cost
      • standard of living
    • competition from other Asian countries (China)
      • cheaper workforce
  • Effect
    • lower of standard of living to match competitiveness
    • contributed to South Korea’s economic crisis (1997)
globalization financial crisis
Globalization (Financial Crisis)
  • Convergence of misfortunate economic events
    • banking sector was burdened with non-performing loans
    • excess debt
    • lower credit rating
    • chaebol oversight and accountability low
  • Democracy swiftly corrected recession
    • 1998: GDP: -6.6%
    • 1999: GDP: 10.8%
    • 2000: GDP: 9.2%
    • allowed for greater input of populace
south korea conclusion
South Korea Conclusion
  • Globalization
    • started to higher wages
    • demands for social reforms
    • South Korea became less competitive
    • Ironically, the good of globalization caused the bad
history north korea
History: North Korea
  • After Korean War, Kim Il Sung takes over
  • Nationalization versus Chaebol
    • “people’s” property versus the highly private chaebol
    • while abuses in both, higher standard of living obvious only in one
  • Juche (self-reliance)
    • closed all capital flow
    • "the hermit kingdom”
  • Militarization versus Chaebol
    • to secure power Kim Il Sung diverted a third economy for military instead of economic reform (South Korea, 3%)
    • 22 million population, 1.2 million military
      • wastes the most able-bodied men of society with unproductive job
      • famines every year, starving people
north korea economics
North Korea: Economics
  • Refusal to join global markets through Juche
    • lower standard of living
    • police state: complete lack of democratic institutions
    • army needed for government’s lacking legitimacy: massive famines
  • Notable exceptions to global markets
    • Drugs
    • Arms Trade
    • Significant portion of GDP
      • used for making the military bigger, not food
conclusion
Conclusion
  • North Korea is control group for complete nonacceptance of globalization
  • While South Korea experienced problems, it is now on a democratic path with an economy that is substantially better in every aspect