ABSTRACT
This chapter suggests that in South Koreas case the essential structure of its business-government relations–which underscored its spectacular industrial ascent, and which has become a prime target of political unrest in the 1990s–remains more or less intact. It discusses some of the specific types of regulation South Korea might consider adapting to reform big business. Late industrializes have included not just the fast-growth economies of Japan, South Korea, and Taiwan, but also the slower-growth economies of, say, India, Mexico, and Brazil. In both South Korea and Taiwan, the subsidy allocation process was corrupt to the extent that no firm could expect to receive substantial aid if it was openly critical of the government. The chapter suggests that South Korea has demonstrated an inappropriate drift toward the Anglo-Saxon model of political economy. It argues that the drift toward the Anglo-Saxon model has already taken some toll on the South Korean economy.
