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Policy and Economic Performance in Divided Korea during the Cold War Era: 1945-91 (Paperback)
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Policy and Economic Performance in Divided Korea during the Cold War Era: 1945-91 (Paperback)
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The Korean peninsula during the Cold War provided a cruel but
historically unparalleled real-world “experiment” in the
relationship between polity and material advance: an ethnically and
culturally homogenous nation was, in 1945, suddenly divided by an
arbitrary boundary line and then subjected to two radically
different and adversarial political economies for successive
decades on end. Assessing the competition between the North and
South Korean economies from partition to the end of the Soviet era,
Nicholas Eberstadt argues that the storyline is not quite as simple
as the now-prevailing narrative suggests (that centrally-planned
economies are doomed to fail against market-oriented alternatives).
Rather, he suggests, the race for material progress was just that:
a race, the results of which were far from preordained at the
outset. In Policy and Economic Performance in Divided Korea during
the Cold War Era: 1945–91, Eberstadt presents an impressive
compilation of hard-to-find comparative data on economic
performance for the Democratic People’s Republic of Korea (DPRK,
or North Korea) and the Republic of Korea (ROK, or South Korea)
over two critical generations. By a number of indicators, Eberstadt
argues, Kim Il Sung’s North Korea actually outperformed South
Korea for much of this period—not only in the years immediately
following partition, but perhaps also into the 1970s. To explain
these surprising results, Eberstadt details the impact of
government policies on the course of growth of both economies and
offers some unorthodox observations about material performance
under these two contending polities. He finds that prevailing
economic development theory on such issues as planned-versus-
market economies, military burden, and the relationship between
material advance and poverty, may require reexamination in light of
the experience of the two Koreas between partition and the end of
the Cold War.
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