Confucianism and Economic Development in South Korea

An Inquiry into the Conditions Promoting the Growth of the South Korean Economy

Introduction
Economic growth in Japan, Korea, Taiwan, Hong Kong, & Singapore Similar growth not seen in other regions All members of Confucian cultural sphere Arguments for Confucianism as contributing factor Today a skeptical historians look

Approach
Brief review of scholarly arguments re Confucianism and capitalism Examination of specifics re South Korea

Views of Confucianism and Capitalism

Late 19thearly 20th century
Disdain for commerce: 4 people model Disdain for physical labor Emphasis on metaphysical inquiry Max Weber

Views of Confucianism and Capitalism (2)

Late 20th, early 21st Centuries In the West: Samuel Huntington, Tu Wei-Ming Huntington: Culture Matters Tu: Community of Trust based on family Education, Self-cultivation In the East: Lee Kwan Yew: Asian Values Shimada Kenji: Confucianism + Capitalism

Economic Growth in South Korea

South Korea in 1950s
International basket case, foreign aid Per capita GDP under $200 Some modernization in cities 75% of population in farming villages

South Korea now

13th largest economy/per capita GDP $20,000 Industrialized, 90% in cities, very high tech

Economic Growth in South Korea (2)

A Familiar Story
1961 Park Chung Hee takes power
Economic Planning Board First 5-year Plan, export-led development By late 1960s, exports of clothing, etc.

1970sKorea moves into heavy industry

Steel plants Shipbuilding

1980sKorea moves into high tech 1997Asian Financial Crisis 2000sKorea recovers quickly

Explanations of Economic Growth

Colonial Heritage
Tutelage, infrastructure under Japanese Export led, chaebol (zaibatsu ) model Problems: little tutelage, wartime devastation

Park Chung Hee

Had vision, determination, personally incorruptable Problem: To explain Taiwan, Hong Kong, Singapore

Confucianism: Tradition and Modernity Group

Borrowed from Huntington, Tu, and others Added interesting twists: role of scholars Problems: Family backgrounds, 1997 Financial Crisis

Problems with Confucian Explanation

Big picture
Confucianism
Emphasis on civil rule Harmony over competition Deprecation of commerce

South Korea under Park and Chun

Military dictatorships Lip service to harmony, fostering of competition Primary emphasis on commerce, industry

Problems with Confucian Explanation (2)

Specific issues
The people
Confucian minbon thought Park, Chun oppress workers to keep wages low

Education
Confucian education generalist S. Korean education specialized, technical

Hierarchy
Confucian hierarchy based on age, lineage, status S. Korean chaebol based on military model

S. Korean Economic Development in Historical Perspective

Key Events
1965 Korea-Japan Normalization Treaty
Reparations,investment from Japan Expanding trade with Japan

--1965 Brown Memorandum

In return for S. K. participation in Vietnam War U.S. agrees to:
Provide combat pay for S.K. soldiers Give important concessions to S.K. businesses Hyundai, others build U.S. bases in Vietnam Hanjin (KAL) provides transportation services Many other concessionspower plants, etc. Korea got experience, credibility, capital

1970s major construction contracts in Southeast, West Asia

International Political Economy Context

Cold War Regime
Competition between West & Communist Bloc
U.S. anxious to show market economy superior Modernization theory, aid

U.S. particularly concerned re East Asia

Wars in Korea, Vietnam, concern re Japan Heartland theory U.S. gives open access to U.S. markets

Explains not only Korea, but all 4 tigers 1997: U.S. would not have allowed during Cold War

Final Comments
S.Korean development a remarkable story
Not just U.S. Cold War Policy Also hard work by S. Koreans

Role of Nationalism, Social Darwinism

Park Chung Hee used nationalism But strong undercurrent of Social Darwinism Both far from Confucian

Koreans determined to avoid repeat of late 19th, early 20th centuries