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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 28, No. 4, pp.415-453
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2015
Received 08 Oct 2014 Revised 14 Oct 2015 Accepted 02 Nov 2015

A Schumpeterian Analysis of the Saemaul Undong Movement in 1970s South Korea within the CDD Framework

Djun Kil Kim
Professorial & Research Chair of Samsung Korean Studies Program, College of Arts & Sciences, University of Asia & the Pacific, Pearl Drive, Ortigas Center, Pasig City 1605, Philippines, Tel: +63 2 637 0912 to 26 loc. 287, Fax: +63 2 637 0912 to 26 loc. 369 djunkil.kim@uap.asia

JEL Classification: N95, O18, P32, P46, R11

Abstract

In the 1970s, the Park Chung Hee government launched the Saemaul Undong (New Village) Movement to address the widening urban-rural income gap. This is often interpreted as a politically-motivated project due to the fact that promoting the SU movement requires a political system capable of sufficient gathering of resources. This paper takes on a different perspective in looking at the components of the SU movement. The goal of this paper is two-pronged: to identify elements of Community-Driven Development (CDD) in the SU movement, and to analyze the SU movement using Schumpeterian concepts in order to draw some implications from the SU model for the economic development in the developing world. While the movement was implemented prior to the conception of CDD as a framework, the elements of CDD of community participation, civic capacities and resource availability were already used. On the other hand, the Schumpeterian concepts of endogenous growth (administrative arrangements, communal empowerment and the community funding), creative destruction (developing civic capacities and ideological reform), innovation (spread of agricultural and non-agricultural technologies), entrepreneurship (Saemaul leaders and education) and minimal role of state (incentive-oriented strategy of the government) were identified in the components of the SU movement.

Keywords:

Community-Driven Development (CDD): Community Participation, Civic Capacities, Resource Availability Schumpeterian Concepts: Endogenous Growth, Creative Destruction, Innovator-Entrepreneur, Innovation Saemaul Undong Movement, Saemaul Leaders, Saemaul Education

Acknowledgments

This paper reproduced through a Schumpeterian lens the Asia Development Bank report “The Saemaul Undong Movement in the Republic of Korea: Sharing Knowledge on Community-Driven Development” done by the author as a consultant to the ADB regional capacity development technical assistance project, Sharing Knowledge on CDD in Asia and the Pacific (RETA 7543) in 2010-11. Dr. Keun Lee, professor of economics at Seoul National University and editor of the SJE, encouraged him to rewrite the ADB report through a Schumpeterian analysis when the author opened in 2014 a seminar course “Catch-up Economic Development ― Korea Model” at a graduate class of Political Economy Program, School of Law & Governance, University of Asia & the Pacific. The author greatly appreciates Prof. Lee's scholarly guidance. He also thanks to Ms. Albertine June D. Din, his research assistant at UA&P, for her laborious help and proof reading. And He specially acknowledges that Dr. Tae Bong Kim, assistant professor of economics at Ajou University, helped in preparing the responses to the peer-reviews.

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