Confucianism and Economic Policy in the Two Koreas
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1 Confucianism and Economic Policy in the Two Koreas J. Barkley Rosser, Jr. Marina V. Rosser James Madison University
2 Republic of (South) Korea (ROK) among successful Asian tigers, now in OECD and moving into high per capita income rank in world. Democratic Peoples Republic of (North) Korea (DPRK) initially did better than ROK in 1950s and into early 1960s, but now far behind with low income status and serious problems such as periodic famine. Earlier unified Korea considered by many to be strongly Confucianist society, more Confucianist than Confucius himself (Whigham, 1904, p. 185). The two Koreas share this heritage, and share some elements such as concern for education and hierarchy, but differ in others such as views to trade and openness.
3 Perspectives for Analysis New Institutional Economics (Coase, Williamson, Aoki): Minimize transactions costs. New Traditional Economy (Rosser and Rosser): Embed technologically advanced economy in traditional civilization, role of familistic groupism, chaebol in ROK, Kim dynasty in DPRK. Economics of Civilizations (Kuran): Synthetic view above cultures embodying many aspects; there exists Korean civilization from ancient past, despite periods of political disunity.
4 Kuran on Economics of Civilizations Civilization captures more than culture, which comes to mind as a benign alternative. We may speak of the political culture of India, Calcutta s commercial culture, and the musical culture of South Asia. The concept of Indian civilization encompasses all of these, along with the mechanisms that account for their interactions. Serving as a broader unit of analysis, it weaves together social traits and patterns studied by diverse disciplines, including ones that cultural studies specialists consider outside their domain. (Kuran, 2009, JEBO, 3 rd paragraph)
5 Korea s Relation to China and Japan Korea as conduit of Buddhism and Confucianism into Japan from China, caught between the two larger countries. All three share Buddhism originally from South Asia. All three share Confucianism from China. Each has local, native religion: Taoism in China, Shintoism in Japan, Sinkyo in Korea.
6 Rise of Confucianism in Korea Buddhism dominant in Korea for centuries before late 1300s. Choson dynasty in 1392 replace it with Confucianism, economically dynamic in 1400s. Korea develops own version of neo- Confucianism in 1700s, with subtle Christian elements (Tasan) Insularity and anti-commercialism in 1800s with poor Hermit Kingdom, overseen by yangban elites, leading to Japanese conquest in 1910.
7 Elements of Korean neo- Confucianism (Tasan) Three Bonds : son to father, subject to king, wife to husband. Five Moral Relationships : affection between father and son, proper order of old and young, righteousness between king and subject, proper separation of functions between husband and wife, and faithfulness among friends. All arise from benevolent harmony of jen. Also tradition of respect for education and lack of respect for commercial activity.
8 South Korea as successful neo- Confucian economy? Some critics (Eder, 1996), but others full of praise, Noland and Weeks (2009): Korea is arguably the premier development success story of the last half century. Modern ROK officially rejects Confucianism and officially rejects hierarchical elements. Is ROK a new traditional economy in spite of itself? Followed Japanese model, indicative planning and chaebol like pre-ww II zaibatsu of Japan. Chaebol family owned and exhibit many Confucian elements, familistic groupism. CEO is father of family and king of company. Attitudes to workers an issue. Strong emphasis on education in ROK.
9 Confucian Elements in North Korea DPRK also officially rejects Confucianism. Like ROK there is strong emphasis on education. Respect for ruling dynastic family. In ways more Confucianist than ROK, particularly with insularity in juche policy of self-sufficiency and its anti-commercial attitude and policies.
10 Cumings on DPRK (1997, p. 413 The resonance with Korea s past means that the DPRK often impresses foreign visitors precisely in its cultural conservatism: a Japanese visitor old enough to remember prewar Japan remarked on the similarities he found in the antiquarian atmosphere of North Korea The antiquarian aspect of this regime thus extends to an elite that has the same sense of birthright and entitlement as the old yangban (and for a minority that travels abroad, a life of world-class privilege). There is a yawning chasm between the elite prerogative and the difficult daily lives of nearly everyone else.
11 Conclusion South Korea not a full new traditional economy because runs from its Confucianist heritage, while exhibiting it. Is successful as new institutionalist economy, with chaebol minimizing transactions costs and re-arising, while reflecting Confucianist elements. North Korea failure as new institutionalist economy, with poor economic performance. However, arguably a bit more Confucianist than South Korea, while also officially rejecting heritage.
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