GST4001 - Session 3.1

How did Korea achieve such economic growth in 3 decades?
- International capital investment: military/economic aid and "expert advice" (that they didn't take)
- Advice: focus on self-sustainment through agriculture
- Actors: State, Chaebols, Financial institutions

"Targeting" strategy - which industry to develop? - State focused on industry (instead of agriculture)
- State chose chaebols (plural, for competition and prevent monopolies) to focus on specific industries, channeled them capital
- "Deliberate designing"
- Focus on exporting to global market: export-driven strategy (80% to outside market)
- Developed economy and market for fast growth - link with global economy when domestic is too small/undeveloped
- "Effective competition" for cost, quality, and blahblahblahblahblahblahblahblahblahblah

Economic Nationalist Perspective
Wealth leads to Power

Economic Nationalist Perspective on Trade
Historical Influence

16th–18th Century:
- The Era of Mercantilism
19th Century:
- Britain as Hegemon
20th Century:
- The Great Depression (1930s)
- The Era of “Neomercantilism”
- (since the 1970s; Japan Inc. example; protectionism; state-guided eco. growth)

Economic Nationalism:
Hegemonic Stability Theory
- What Happens If There Is One Dominant Power (the 'hegemon')?
- Is the US still a hegemon? "Hegemon in decline"

The Hegemon
- Large domestic market
- Internationally competitive industries
- Advanced technology
- Strong, internationally convertible currency
Belief in a Liberal system
Willingness to lead and bear the costs (of peace)

Economic Nationalism:
Hegemonic Stability Theory
ECONOMIC NATIONALISM:
Hegemonic Stability Theory
ECONOMIC NATIONALISM:
Hegemonic Stability Theory
 Public Goods and the Hegemon
 Motivation
 Duties
 Decline of Hegemony and Its Implications
Two Eras of Hegemonic Stability
Pax Britannica
1815-1914
Pax Americana
1945-1971? 1995?