The Political Economy of the Small Welfare State in South Korea

Author: Jae-jin Yang  

Publisher: Cambridge University Press‎

Publication year: 2017

E-ISBN: 9781108246736

P-ISBN(Paperback): 9781108415903

Subject: D5 World Politics

Keyword: 世界政治

Language: ENG

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The Political Economy of the Small Welfare State in South Korea

Description

This book explains why the Korean welfare state is underdeveloped despite successful industrialization, democratization, a militant labor movement, and a centralized meritocracy. Unlike most social science books on Korea, which tend to focus on its developmental state and rapid economic development, this book deals with social welfare issues and politics during the critical junctures in Korea's history: industrialization in the 1960–70s, the democratization and labor movement in the mid-1980s, globalization and the financial crisis in the 1990s, and the wind of free welfare in the 2010s. It highlights the self-interested activities of Korea's enterprise unionism at variance with those of a more solidaristic industrial unionism in the European welfare states. Korean big business, the chaebol, accommodated the unions' call for higher wages and more corporate welfare, which removed practical incentives for unions to demand social welfare. Korea's single-member-district electoral rules also induce politicians to sell geographically targeted, narrow benefits rather than public welfare for all while presidents are significantly constrained by unpopular tax increase issues. Strong economic bureaucrats acting as veto player also lead Korea to a small welfare state.

Chapter

Legacies of the Developmental State and General Theories Revisited in the Korean Context

Historical Overview of the Korean Welfare State

Institution Building during the Developmental State

Continuity of the Underdevelopment of the Korean Welfare State after Democratization

Methodology, Contributions, and the Organization of the Book

2 Theoretical Reinterpretation of the Small Welfare State in South Korea

The Korean Welfare State in Comparative Perspective

Theoretical Understanding of the Small Welfare State in South Korea

Logic of Industrialism, EOI, and Employers in the Korean Context

Power-Resources Model and Organized Labor in the Korean Context

Democracy and Electoral Rules in the Korean Context

Statism in the Korean Context

Concluding Remarks

3 The Emergence of the Small Welfare State under the Authoritarian Developmental State (1961–1987)

The Rise of the Developmental State, New State-Society Relations, and Centralization of State Bureaucracy

Introduction of the First Compulsory Social Insurance

Implications of Export-Oriented Industrialization for Welfare Politics and Poverty Reduction

The Yushin Regime and Heavy and Chemical Industrialization

The Social Consequences of the HCI Drive

“Reaganomics before Reagan” and Formation of the Low Tax Regime

Welfare Politics under the Yushin Regime

The National Welfare Pension Scheme

Implementing Health Insurance

Neo-Conservative Economic Reforms and Enterprise Unionism Enforced under the Authoritarian Fifth Republic (1980–1987)

Fiscal Conservatism and the Emergence of Corporate Welfare

Concluding Remarks

4 Democratization and Limited Welfare State Development under the Conservative Rule (1988–1997)

From Authoritarianism to Democratic Rule: Institutional Reform during the Elite-Negotiated Democratic Transition

Labor and Civil Society Activism but the Failed Leftist Party Movement

Welfare Politics during the Democratic Transition

The Politics of Health Insurance

Pension Politics

The Conservative Grand Coalition and Institutionalization of Enterprise Unionism

New Management Strategies and Corporate Welfare

Neoliberal Economic Reforms under the Kim Young Sam Government (1993–1997)

Segyehwa Campaign and Probusiness Neoliberal Economic Reforms

Failed Experiments in Tripartitism

Welfare Politics during the Segyehwa Campaign

The Introduction of Employment Insurance Scheme

Pension Coverage Expansion and Neoliberal Pension Reform Efforts

Concluding Remarks

5 Economic Crisis, Power Shift, and Welfare Politics under the Kim Dae Jung Government (1998–2002)

The Asian Financial Crisis, Power Change, and a New Social Policy Network

Social Consequences of the Economic Crisis

Power Shift and New Coalitional Dynamics

Emergence of a New Social Policy Network

Resolving Social Questions with Old Solutions: The “Great Expansion” of Social Insurance Programs

Expansion I: Employment and Industrial Accident Insurances

Expansion II: The National Pension Scheme Faces a Divided Civil Society

Expansion III: The National Health Insurance Scheme and Divided Labor

Expansion IV: Strengthening Public Assistance

Limits on Social Safety Nets and Emergence of an Undersecured Society

Concluding Remarks

6 Economic Unionism and the Limits of the Korean Welfare State under the Roh Moo Hyun Government (2003–2007)

Labor Market Liberalization, Dualism, and Polarized Welfare State

Frustrated Vision 2030 and Welfare Reforms to Address Low Fertility and Rapid Aging

Vision 2030 and Defeat of the 2007 Presidential Election

Addressing Low-Fertility and Rapid Aging

Enterprise Unionism and the Limits of the Korean Welfare State

Failed Countermovements for Solidarity and the Welfare State

Social Concertation and the Social Reform Struggle Movement in Decline

The Chaebol Unions and the Failed Industrial Union Movement

Electoral Rules, Weakness of Leftist Parties, and the Failed Social Solidarity Movement

Concluding Remarks

7 Wind of Free Welfare and Tax Politics under the Returned Conservative Rule (2008–2017)

Coming Back of Conservatives with the Lee Myung Bak Presidency (2008–2012)

Aborted Neoliberal Welfare Reforms Amid the 2008 Global Financial Crisis and Tax Cuts

What Remains the Same: Grim Prospects in the Job Market and Poverty after Retirement

Free School Lunch and the Outbreak of the Wind of Free Welfare

Boom and Bust in Welfarism under the Park Geun Hye Presidency (2013–)

Conservative Embrace of Welfare Issue and Competitive Bid for More Welfare

Budgetary Restraint and Rolling Back of Welfare Promises

Tax Row and Withering of the Wind of Free Welfare

Politicians and Organized Labor in the Withering of the Wind of Free Welfare

Concluding Remarks

8 Conclusion

The Underlying Logic of the Small Welfare State in Comparative Perspective

Prospects for the Korean Welfare State

Bibliography

Index

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