North Korea and South Korea: Different Perspectives on Globalization and Its Effects - PowerPoint PPT Presentation

Loading...

PPT – North Korea and South Korea: Different Perspectives on Globalization and Its Effects PowerPoint presentation | free to download - id: 19045-OTdkM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

North Korea and South Korea: Different Perspectives on Globalization and Its Effects

Description:

... South ... Park Chunghee begins to build South Korea into economic power. stablity but still ... Park's Economic Plans for Chaebols. creation of export ... – PowerPoint PPT presentation

Number of Views:577
Avg rating:3.0/5.0
Slides: 16
Provided by: adamsc1
Learn more at: http://www.courageunfettered.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: North Korea and South Korea: Different Perspectives on Globalization and Its Effects


1
North Korea and South Korea Different
Perspectives on Globalization and Its Effects
  • Andras Konya
  • Adam Schlegel
  • Amanda Baldwin

2
Introduction
  • Compare the effects of globalization (or lack
    thereof) on two comparable countries with similar
    culture, history, and definite point of
    separation.
  • Pinpoint strengths/weaknesses of globalization
  • Method, not apples/oranges

3
History Korean War
  • Soviets and Americans decide to divide Korea into
    their own sphere of influence
  • North and South (1948)
  • Secretary of State Dean Acheson neglected to
    include Korea in the US sphere of influence in
    Asia.
  • Kim Il Sung took initiative to invade the South
    (1950)
  • not Stalin but Stalinist
  • War ends ends in stalemate, 38th parallel, DMZ
  • Both countries are ruined in the similar manner
  • Ideal comparison
  • Each embraces different ideology totalitarian
    vs. authoritarian

4
Path to Globalization
  • Following the Korean War, a decade of political
    turmoil begins
  • First President Syngman Rhee ousted from office
    (1960)
  • rigged elections for vice president cause student
    riots
  • Democracy not initiated
  • military coup detat, Park Chunghee takes over
  • Park Chunghee begins to build South Korea into
    economic power
  • stablity but still not democratic
  • tool chaebol

5
Chaebol System
  • Conglomerate
  • large corporation with many unrelated
    subsidiaries
  • centrally planned though private
  • lack of input from minor shareholders
  • financial security for all companies involved

6
Parks Economic Plans for Chaebols
  • creation of export-oriented industries
  • creation and fostering of heavy industry
  • maintenance of anti-union behavior
  • protection of domestic market
  • pegging won to dollar
  • chaebols are major force in the South Korean
    economy
  • 1960s to 1990s
  • big enough to utilize limited resources
    effectively
  • government contracts and subsidies

7
Top Chaebols in South Korea
  • Hyundai
  • Automobiles
  • Engineering, construction, shipbuilding and
    industrial activity
  • Finances
  • Samsung
  • Electronics
  • Petrochemicals
  • Construction (Petronas Towers in Malaysia)
  • LG
  • Home appliances and electronics
  • Petrochemicals and chemicals

8
Emerging Globalization (Advantages)
  • Through the chaebols, South Korea emerged as an
    export leader of the world
  • Import raw materials to manufacture exports
  • Industrialization and Service Economy
  • Higher standard of living
  • better education
  • more material possessions
  • increased leisure time
  • GDP skyrockets from third world equivalent to
    Western European standards

9
Emerging Globalization (Disadvantages)
  • Profits appease populace as long as they are
    positive
  • economic downturn leads to civil disobedience and
    revolution
  • no democratic process or structure to deal with
    problems
  • political stability dependent on economic
    situation
  • authoritarian until 1987, numerous revolutions,
    undemocratic
  • chaebols are undemocratic by nature

10
Decline of Chaebols
  • Ultimate decline of chaebols
  • Too big to manage effectively
  • Core competency (unrelated industries)
  • Decline
  • rise in labor cost
  • standard of living
  • competition from other Asian countries (China)
  • cheaper workforce
  • Effect
  • lower of standard of living to match
    competitiveness
  • contributed to South Koreas economic crisis
    (1997)

11
Globalization (Financial Crisis)
  • Convergence of misfortunate economic events
  • banking sector was burdened with non-performing
    loans
  • excess debt
  • lower credit rating
  • chaebol oversight and accountability low
  • Democracy swiftly corrected recession
  • 1998 GDP -6.6
  • 1999 GDP 10.8
  • 2000 GDP 9.2
  • allowed for greater input of populace

12
South Korea Conclusion
  • Globalization
  • started to higher wages
  • demands for social reforms
  • South Korea became less competitive
  • Ironically, the good of globalization caused the
    bad

13
History North Korea
  • After Korean War, Kim Il Sung takes over
  • Nationalization versus Chaebol
  • peoples property versus the highly private
    chaebol
  • while abuses in both, higher standard of living
    obvious only in one
  • Juche (self-reliance)
  • closed all capital flow
  • "the hermit kingdom
  • Militarization versus Chaebol
  • to secure power Kim Il Sung diverted a third
    economy for military instead of economic reform
    (South Korea, 3)
  • 22 million population, 1.2 million military
  • wastes the most able-bodied men of society with
    unproductive job
  • famines every year, starving people

14
North Korea Economics
  • Refusal to join global markets through Juche
  • lower standard of living
  • police state complete lack of democratic
    institutions
  • army needed for governments lacking legitimacy
    massive famines
  • Notable exceptions to global markets
  • Drugs
  • Arms Trade
  • Significant portion of GDP
  • used for making the military bigger, not food

15
Conclusion
  • North Korea is control group for complete
    nonacceptance of globalization
  • While South Korea experienced problems, it is now
    on a democratic path with an economy that is
    substantially better in every aspect
About PowerShow.com