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2012-03-08_Lecture#8-State, Corruption and Development.docx

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Political Science
Lynette Ong

Ernie Tam 20120308 Lecture8State Corruption and DevelopmentCriticism of East Asian Developmental Model Contrast corruption in South Korea and ChinaLecture Outline South Korea Corruption and Development StateSK under Park Chung HeeCorruption special favors and political donationsReconciling high growth and corruptionChinaIndividual corruptionOrganization corruption What is the nature of the Chinese StateSKs high growth period of 1960s and 1970s Park Chung Hees rule 19611979o SKs GDP was lower than Philippines in 1961o South Korea has improved drastically in the last 40 yearso Set his priorities on industrial promotion and economic growtho Given SKs vulnerabilities in the 1960s particularly the threat of communism from the north restoring economic growth was essential to preserve national securityo Different from Predecessors Rhee who ruled in the 40so Rhee was preoccupied with the relationship with the US and reunification of North Economy was second Park Chung Hee was educated in Manchuria and had admired Japan Parks affinity with Japan o Solution to communist threat and economic growth is to copy the Japanese model of state led economy o He wanted to reconstruct SK with Japans modelo Japanese modelState ledo Under park there have been powerful administrations economic growth board and South Korean Banko Government bureaucratSecond prize in comparison to private entrepreneuro Military associates in charge of key industries o More politically repressive in comparison to JapanViolently suppressed workers Attempt at forming unions were declared as communistKeiretsu are not family owned but owned by private individuals who are centered by banks Economic domination by the Chaebolo Chaebols are family owned o Under Park the state had a close relationship with big businesseso When he first came to power he was charged with corruption and realized that in order togrow economy you had to have good relationship with big businesses
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