Crony Capitalism: Corruption and Development in South Korea and the Philippines
Why has the literature on Asian development not addressed the issue of money politics in Korea? How can we reconcile the view of an efficient developmental state in Korea before 1997 with reports of massive corruption and inefficiency in that same country in 1998 and 1999? Politics is central to the answer. In this book I make two arguments. First, both Korea and the Philippines experienced significant corruption throughout the post-independence era. Second, political--not economic--considerations dominated policy making in both countries.
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By Naima Kabiri (International Studies Researcher)
David Kang in his book “Crony Capitalism” has gone through a considerable investigation in the Philippines & Korea’s background in corruption and money politics. In Crony Capitalism Kang illuminates that the Asian financial crisis of 1997 was not the overnight crisis. The sudden fall of Korean economic growth, remarkably surprised all scholars who were impressed with the massive growth of Taiwan, Singapore, Korea and Hong Kong. He believes that the massive growth of some Asian countries such as Korea is associated with a better structured bureaucratic government. In comparison he investigates the Philippines economic history that is famous as a corrupt, undeveloped and backward state. Kang named the two states as "Crony Capitalist states" where the capital governments are linked to the business sector on the exchange of favor for bribes ( as in Korea) or a rent seeking government existence (as in the Philippines). Despite the many similarities between the two states, Kang has identified various differences as well, that lead to the economic growth of Korea but to the corruption in the Philippines.