Wk 5: The Welfare State

Newly Industrialized Countries (NICs)/East Asian "Tigers"

A country whose level of economic development ranks it somewhere between developing and highly developed classifications, an example being East Asian states who rapidly developed into industrialized countries.

Neoclassical economics and comparative advantage

A formal attempt to explain the workings of capitalist enterprise, with particular attention to distribution.

The developmental state

A state that manipulates and guides economic policy to achieve economic development (usually in a short period of time).

Chaebol

Large family owned business conglomerates in Korea that fueled much of its industrial development.

Law of Ill Gotten Gains

Corporations were forced by the South Korean government to give money to industry or they were punished.

Import-substituting Industrialization (ISI) versus Export-Oriented Industrialization (EOI)

An economic policy which aims to achieve development by replacing foreign imports with domestic production of industrial goods vs an economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage.

Park Chung-hee in South Korea

Leader of South Korea that furthered ISI and grew and strengthened the South Korean economy.

The Washington Consensus

An array of policy recommendations generally advocated by developed-country economists and policy makers starting in the 1980s, including trade liberalization, privatization, openness to foreign investment, and restrictive monetary and fiscal policies.

Salvador Allende

Socialist politician elected president of Chile in 1970 and overthrown by the military in 1973. He died during the military attack.

The Chicago Boys

Implemented by Pinochet regime in 1973. Radically changed economy, moved towards realistic exchange rates, returned land holdings. Banned liberties, unions, outlawed some parties, universities purged.