Business Associations and the Developmental State in Korea The Case of the Machinery Industry in the 1960 and 1970s*
Received: Jul 17, 2017; Revised: Jul 24, 2017; Revised: Oct 22, 2017; Accepted: Oct 25, 2017
Published Online: Dec 31, 2017
Abstract
This research examines a way the Korean developmental state achieved a synergy between state and society for industrial development: business associations. In the machinery industry, a business association was involved in formulating industrial policy for promoting the machinery industry and in implementing policy programs such as the prohibition of the import of machinery made in foreign countries. The association also functioned as a channel through which information relevant to the industry was provided to government. The association had a professional staff and an internal governance structure that helped prevented rent seeking and encouraged synergy between public and private sector.
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