Title: North Korea and South Korea: Different Perspectives on Globalization and Its Effects
1North Korea and South Korea Different
Perspectives on Globalization and Its Effects
2Introduction
- Compare the effects of globalization (or lack
thereof) on two comparable countries - with similar culture,
- history, and
- definite point of separation.
- Apples and Oranges
3History of Korea
- Korea is a peninsula of mainland Asia
- People are historically and culturally
independent - Located between Japan/China traditional rivals
- 20th Century
- Occupied by Japan 1910
- WWII ends 1945- divided
4History Korean War
- Soviets/Americans decide to divide Korea
- North-Soviet
- South-U.S.
- Promise to hold elections
- Soviets name Kim Il Sung to be communist leader
- 1950 N.K. invades S.K.
- United Nations defends S.K.
- Back and Forth War (1950-1953)
- The Forgotten War
- 53,000 deaths in 3 years
- War ends with a Cease Fire (Stalemate)
5Korean War Memorial Washington D.C.
6- 38th parallel, DMZ (Demilitarized Zone)
- Both countries were ruined in the similar manner
by Korean War. - Each embraces different ideology
- Totalitarian Communist North Korea
- Authoritarian- Democracy South Korea
7South Koreas Path to Globalization
- Following the Korean War, a decade of political
turmoil begins Syngman Rhee chosen President - Aggressive leader wanted to invade North and
unify Korea - U.S. would not supply w/weapons
- Rigged elections for vice president cause student
riots - Promises more democracy/riots end
8- First President Syngman Rhee ousted
from office (1960) - Democracy not initiated
- military coup d'état, Park Chunghee takes over
(U.S. supports) - Park Chunghee begins to build South Korea into
economic power (1960s) - still not democratic but STABLE.
- tool chaebol
9Chaebol System (Illegal in U.S.- Anti Trust laws)
Wednesday April 20, 2016
- Conglomerate Organization
- large corporation with many unrelated
subsidiaries - centrally planned (govt) though privately
operated - lack of input from minor shareholders- FASTER
ACTING - financial security for all companies involved
10Parks Economic Plans for Chaebols
- Creation of export-oriented industries
- Clothing
- Automobile
- maintenance of anti-union behavior
- Keep wages low
- Keep prices low
- Protection of domestic market (Tariffs)
- chaebols became major force in the South Korean
economy
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12Top Chaebols in South Korea
- Hyundai
- Automobiles
- Engineering, construction, shipbuilding and
industrial activity - Finances
- Samsung
- Electronics
- Petrochemicals
- Construction (Petronas Towers in Malaysia
Entrapment) - LG
- Home appliances and electronics
- Petrochemicals and chemicals
13Emerging Globalization (Advantages) (2nd Period)
- 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
14Emerging 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
- Today more democratic
15Decline of Chaebols
- Ultimate decline of chaebols
- Too big to manage effectively
- unrelated industries different needs
- rise in labor cost
- competition from other Asian countries (China)
- cheaper workforce
- Result
- contributed to South Koreas economic crisis
(1997)
16Globalization Financial Crisis(similar to U.S.
2008 Big Short)
- Convergence of misfortunate economic events 1997
- 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
- (GDP Gross Domestic Production
- All goods a country produces
-
17South Korea Conclusion
- Globalization Impact
- Increase wages-raise standard of living
- Demands for social reforms (democracy)
- South Korea became less competitive
- Economically
- (Adjusting to new competitors)
- Future???? UP or DOWN?????
18History North KoreaThursday/Friday April 2122
- After WWII Kim Il Sung controls
- Nationalization of economy
- peoples property Collective farming
- Nationalized industries
- Low standard of living
- Juche (self-reliance)
- closed all capital flow-no outside investments
- "the hermit kingdom
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20- Military emphasis
- 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
21North Korean Dictators
- "Great Leader" Kim Il-sung,
- Grandfather
- First premier 1948-1994
- Born 1912 died 1994
- "Dear Leader" Kim Jong-il
- Father
- Second premier 1994-2011
- Born 1942 died 2011
- The Great Successor Kim Jong-un
- Premier since 2011
- Born 1983
22Memorial for The Great Leader The Dear
Leader
23U.S./North Korean Relations
24Economy of North Korea
- Best example of command economy in the world
- Govt makes all economic decisions
- Govt owns all factories and industries
- Govt controls agriculture (collective farms)
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26North Korea Economics
- Refusal to join global markets lower standard
of living - police state complete lack of democratic
institutions - army needed for governments lacking legitimacy
massive famines - PROPAGANDA
- Notable exceptions to global markets
- Drugs (Opium)
- Arms Trade-
- Nuclear to terrorists?
- Significant portion of GDP
- used for making the military bigger, not food
27North Korea Economics
- Major industries
- machine building,
- electric power,
- chemicals,
- mining,
- metallurgy,
- Textiles
- military products,
28Economy North Korea's GDP growth has been slow
29- State provides free
- Housing
- Healthcare
- Education
- High quality esp. math/sciences
- Political ideology Brainwashing
- .
30Military
- Defending the fatherland is the supreme duty and
honor of citizens - Male universal conscription (all must serve in
military) - Female partial conscription
- Young Red Guard youth training
31Military
- N.Korea secretive about military
- Est. 700,000 to 1.2 million 4th largest
- GlobalFirepower.com ranks 25th in world
32Monday April 25, 2016
33Nuclear Weapons
- Four successful nuclear tests 2006,2009, 2013
2016 (NK claims hydrogen) - U.N. sanctions have been used to deter
- Six Party Talks (US, RUSSIA CHINA, JAPAN, S.K,
N.K.) - Poor results
- 2016 China condemns nuclear test. HOPE???
34Nuclear Weapons
- Delivery system (rockets/missiles)
- Short range YES
- Mid range ???
- Long Range NO
35North Korea Police State
- Two criminal systems
- Social crimes (traditional)
- Political crimes (against the communist party)
- Secret police
- Special courts
- Secret Prisons
- GULAG
36- Dozens of camps
- 100s of thousands
- Hard labor
- Families (men, women, and children)
- Foreigners
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38Continuing Crisis w/S. Korea
- On November 23, 2010, North Korea fired about 170
rounds of artillery on Yeonpyeong Island - The attack resulted in the 19 casualties of
- civilian and military
- North Korea claims provocation by S. Korea
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40N S Korea Conclusion
- North Korea is
-
- opposed to globalization (hermit kingdom).
- Very low standard of living
- Very powerful military
- Every aspect of life controlled by a single group
(communists) - Political
- Social
- Economic
41N S Korea Conclusion
- While South Korea experienced problems
- is now on a democratic path
- with an economy that is substantially better in
every aspect. - Member of the global community. U.S. ally.
42N S Korea Conclusion
- N. Koreas military and nuclear capabilities
create a dangerous situation especially with a
very young untested leader - Future is unpredictable .