The Second Act of Globalization

Globalization, the United States, and Keynes: Rethinking 'Globalization'

In 2008, the global economy plunged into a deep recession due to the U.S.-originated financial crisis. What we encountered daily were the soaring numbers of exchange rate fluctuations and the graphs of plummeting stock markets. Amidst warnings of the deepest crisis in 80 years, three terms repeatedly surfaced: Globalization, the United States, and Keynes.

This book was conceived from the necessity to re-examine the globalization that has unfolded in Korean society, prompted by witnessing the backlash against neoliberal globalization and the resurgence of Keynesian thought in the wake of the recent global economic crisis. This is because understanding the complex world we inhabit today and devising appropriate globalization strategies are crucial conditions for ensuring a developed future for 'Korea in the World'.

The Second Act of Korean Globalization Strategy Unfolds

Korean globalization began as a concrete policy and strategy during the Kim Young-sam administration. The first phase of globalization during this period was based on a simple recognition of the need to catch up with the standards of a changing external world. Although significant concrete changes were made in various policies, they ultimately failed to reach completion. Before the intended outcomes of institutional, attitudinal, and cultural reforms could materialize, the economic globalization policy, based on rapid financial market liberalization, culminated in the 1997 national bankruptcy crisis and the subsequent IMF bailout.

The situation has changed. The U.S.-originated financial crisis of 2008 impacted the entire world. As nations globally were already intricately interconnected, the shock to one point propagated through a chain of repercussions across the globe. The consequences were not confined to the economy. The dominant neoliberal paradigm of development and prosperity faltered, and the necessity of government intervention was proven in practice. Furthermore, questions were raised about the management capacity of the United States, which had reigned as the sole superpower since the end of the Cold War.

Korea's position has also shifted within this transformed world. Globalization strategies that merely strive to imitate are no longer sufficient to guarantee development and prosperity. Korea has already hosted the G20 Seoul Summit as the chair nation and has experienced diversification across various societal sectors as a result of the first phase of globalization. It has grown into an economic powerhouse, ranking seventh in global merchandise trade exports, and a cultural force that has sparked the Korean Wave across Asia. It is now imperative to move beyond past imitative and reactive globalization and pursue a reflective globalization strategy that understands internal and external changes, navigates internal and external tensions, and seeks creative alternatives.

Managed Globalization for a Healthy Future for Korean Society

'The Second Act of Globalization: A New Vision for Korean Globalization' meticulously examines the achievements and limitations of the first phase of globalization that occurred in our society over the past decade. At this juncture, a thorough review and diagnosis of past globalization strategies are crucial as foundational work for developing 21st-century alternatives. This endeavor was made possible through the active participation of experts in key areas of Korean globalization, including politics, diplomacy and security, economy, society, civil rights, energy, and health. This book aims to open the second act for a healthy future Korea by deeply analyzing the challenges facing Korean society due to globalization and proposing solutions.

■ Globalization Debates and Empirical Analysis_ This section addresses the basic concepts of globalization, its multidimensional aspects, and the surrounding debates. It also introduces representative indicators that help scientifically and empirically measure and understand the phenomenon of globalization, enabling appropriate responses to the various problems it causes.

■ The Role of Government in the Era of Globalization_ This chapter reviews the impact of globalization on Korea and the Korean government's responses. Effective coping with globalization requires an understanding of its essence as well as its political dimensions. Furthermore, by analyzing the impact of globalization on the Korean policy environment, it discusses the specific roles of government essential for creative adaptation to changing domestic and international environments and for fostering a virtuous cycle of globalization and democratization.

■ Globalization and Security_ This section examines the fundamental changes that newly emerging transnational security threats, arising from expanded inter-state exchanges alongside globalization, bring to global security governance, and discusses appropriate responses. It explores the security order and multilateral cooperation systems needed in contemporary East Asia, which lacks a multilateral security order and institutional framework.

■ Globalization and the Korean Economy_ This chapter examines the Korean economy as it has grown and transformed with the progress of globalization. It further analyzes the achievements and limitations of globalization in terms of economic growth and distribution in the global and Korean economies. With the U.S.-originated financial crisis of 2008, the need for a new paradigm for global economic operation to replace the Washington Consensus has emerged, leading to a comprehensive critique of market economies, neoliberalism, and globalization, and exploring the future direction of globalization in the post-global financial crisis era.

■ Polarization in Korean Society and Social Integration_ This section discusses the socioeconomic polarization trends and widening income disparities that lie beneath the surface of globalization and global integration, and the psychological deprivation they cause individuals. In particular, based on data from the 'Korean Middle Class Public Opinion Survey' conducted concurrently in September 2009, it analyzes Koreans' perceptions of polarization and the tasks for social integration.

■ Globalization and the Transformation of Citizenship_ This chapter examines the impact of globalization on the concept of Korean citizenship and the citizenship system since the 1990s, and Korea's responses. By exploring the arguments of globalists and skeptics regarding citizenship, it seeks to define the role of the nation-state as it is newly transformed by the dynamics of national sovereignty, governance, and national identity.

■ Paradigm Shift in Climate Change and Energy Policy_ This section reviews the origins and key issues of discussions on climate change and energy security, which have emerged as new issues of globalization in recent years, and examines the implications of these issues for Korean national strategy, green growth, and proactive responses to globalization.

■ Globalization and Health_ While globalization holds the potential to improve human health by enhancing living standards and facilitating information and policy exchange between countries, it has also brought about new infectious diseases, obesity, and various health hazards due to environmental pollution, both directly and indirectly. Examining the diverse aspects of globalization's impact on health, this chapter discusses the need for strengthening government roles in healthcare services and establishing a systematic global governance system.

Table of Contents

Foreword

Chapter 1 From Responsive to Reflective Globalization: Origins, Issues, and Tasks of Korean Globalization Theory | Jang Hoon

Chapter 2 Globalization Debates and Empirical Analysis | Lee Suk-jong · Lee Gon-soo

Chapter 3 The Role of Government in the Era of Globalization | Lee Seung-joo

Chapter 4 Globalization and Security | Jeon Jae-sung

Chapter 5 Globalization and the Korean Economy: Focusing on Financial Globalization | Kang Seok-hoon

Chapter 6 Polarization in Korean Society and Social Integration | Lee Suk-jong

Chapter 7 Globalization and the Transformation of Citizenship | Lee Cheol-woo

Chapter 8 Paradigm Shift in Climate Change and Energy Policy | Lee Jae-seung

Chapter 9 Globalization and Health | Jeong Yeon · Kwon Soon-man

For the convenience of our readers, parts of the manuscript of this book are being made public.