Policy Press
Seven South Korea after the 1997 economic crisis: a ‘paradigm shift’?
Abstract
Economic crises increase demands on affected states’ welfare systems, and also present opportunities to rethink welfare policy. The 1997 Asian Economic Crisis placed South Korea in this position and generated a ‘paradigm shift’ in its welfare policy. This chapter reviews the development of the welfare system in South Korea prior to the crisis by highlighting key ideas that made it possible to maintain minimal state welfare provision in the absence of guaranteed social rights. It goes on to examine economic and social conditions after the crisis, as well as political changes taking place at that time, as a background to the ‘paradigm shift’ and the significant expansion of the welfare system. In the context of the impact of labour market reforms after the crisis, the chapter goes on to show that even with the shift, the revised welfare system has failed to mitigate the negative impact of neoliberal economic restructuring on many of those in need of welfare. By drawing attention to the demands of people made through democratic participation, and the impact of economic globalization, it opens up discussions on whether enhancing individual responsibility can be said to be a way forward in an era of economic crises.
Abstract
Economic crises increase demands on affected states’ welfare systems, and also present opportunities to rethink welfare policy. The 1997 Asian Economic Crisis placed South Korea in this position and generated a ‘paradigm shift’ in its welfare policy. This chapter reviews the development of the welfare system in South Korea prior to the crisis by highlighting key ideas that made it possible to maintain minimal state welfare provision in the absence of guaranteed social rights. It goes on to examine economic and social conditions after the crisis, as well as political changes taking place at that time, as a background to the ‘paradigm shift’ and the significant expansion of the welfare system. In the context of the impact of labour market reforms after the crisis, the chapter goes on to show that even with the shift, the revised welfare system has failed to mitigate the negative impact of neoliberal economic restructuring on many of those in need of welfare. By drawing attention to the demands of people made through democratic participation, and the impact of economic globalization, it opens up discussions on whether enhancing individual responsibility can be said to be a way forward in an era of economic crises.
Chapters in this book
- Front Matter i
- Contents iii
- List of figures and tables v
- Notes on contributors vii
- Acknowledgements xi
- Varieties of crisis 1
- The economic crisis and paradigm change 31
- From financial crisis to fiscal crisis 49
- Credit crunch, inequality and social policy 65
- Global social policy responses to the economic crisis 81
- Poverty, the crisis and social policy responses in developing countries 101
- South Korea after the 1997 economic crisis: a ‘paradigm shift’? 119
- China’s response to crisis: what role for social policy? 139
- Tiptoeing through crisis? Re-evaluating the German social model in light of the global recession 159
- Ireland and the impact of the economic crisis: upholding the dominant policy paradigm 181
- Waving not drowning: Iceland, kreppan and alternative social policy futures 199
- Experiences from two financial crises in the Nordic welfare states: 1990-93 and 2008-10 compared 219
- Social policy and the recent economic crisis in Canada and the United States 231
- From economic crisis to a new age of austerity: the UK 251
- Responding to the challenges: some concluding remarks on welfare futures in changed circumstances 271
- Bibliography 279
- Index 323
Chapters in this book
- Front Matter i
- Contents iii
- List of figures and tables v
- Notes on contributors vii
- Acknowledgements xi
- Varieties of crisis 1
- The economic crisis and paradigm change 31
- From financial crisis to fiscal crisis 49
- Credit crunch, inequality and social policy 65
- Global social policy responses to the economic crisis 81
- Poverty, the crisis and social policy responses in developing countries 101
- South Korea after the 1997 economic crisis: a ‘paradigm shift’? 119
- China’s response to crisis: what role for social policy? 139
- Tiptoeing through crisis? Re-evaluating the German social model in light of the global recession 159
- Ireland and the impact of the economic crisis: upholding the dominant policy paradigm 181
- Waving not drowning: Iceland, kreppan and alternative social policy futures 199
- Experiences from two financial crises in the Nordic welfare states: 1990-93 and 2008-10 compared 219
- Social policy and the recent economic crisis in Canada and the United States 231
- From economic crisis to a new age of austerity: the UK 251
- Responding to the challenges: some concluding remarks on welfare futures in changed circumstances 271
- Bibliography 279
- Index 323
