ABSTRACT
This chapter discusses a baseline in the post-World War II political economies of the advanced industrial countries, with brief reviews of Japan, France, Germany, Sweden, Britain, and the United States. It shows show the institutional structure induces patterns of and sets boundaries to government policy and corporate strategy. The chapter focuses on the implications of both the experiences and recent developments of the advanced countries for the choices Korea faces. State-led development in France and Japan was ultimately a conservative modernization in which agricultural and traditional businesses were cushioned against the consequences of development. The central process in both was a shift of resources out of agriculture into industry and a modernization and then internationalization of industry. The political problem in both was that the very groups that had to be displaced—agriculture and like groups in traditional society—were the political base of the conservative governing parties.
