Was Korea’s Economy Structurally Dysfunctional in the Mid-1990s? - A Critique of the IMF’s Justification for Regime Change in Korea in the Wake of the 1997 Crisis

• 영문명: Was Korea’s Economy Structurally Dysfunctional in the Mid-1990s?
• 발행기관: 한국사회경제학회
• 저자명: James Crotty Kang-Kook Lee
• 간행물 정보: 『사회경제평론』 제29 (2)호, 273~307쪽, 전체 35쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2007.11.29

영문 초록

  As late as October 1997 the IMF declared that the Korean economy was experiencing a temporary liquidity squeeze, not a solvency problem. Yet in December 1997 Deputy Managing Director Stanley Fischer declared that Korea suffered from a systemic “breakdown of economic relations” so complete that only radical economic restructuring could restore prosperity. The IMF attached what it called “extreme structural conditionality” to its loan agreements with Korea, demanding a complete and rapid transition from Korea’s traditional East Asian economic model to a globally integrated neoliberal model. We subject the IMF’s assertion that the allocative efficiency of the Korean economy had collapsed by 1997 to a number of empirical tests. The evidence does not support the IMF’s systemic breakdown claim. We conclude that the IMF’s imposition of “extreme structural conditionality” on Korea is best understood as an illegitimate and antidemocratic exercise of power designed to meet the needs of the IMF’s key constituents rather than those of the majority of Korea’s people.

목차

Ⅰ. Introduction
Ⅱ. The 1997 Financial Crisis and the IMF Response
Ⅲ. Did the Korean Economy Collapse in the mid 1990s?
Ⅳ. Conclusions
REFERENCES

키워드

Korean Economy Asian Crisis Structural Adjustment IMF Neoliberalism Development Theory