Economic Democracy as the Prerequisite to Liberalization: A Systemic Approach

Abstract

This paper proposes dissenting views against a reborn orthodoxy. First, not only individual economic powers, Particularly chaebols, but also undemocratic economic system itself is to be transformed to a rational one for 'capitalist democracy' and fair competition to operate. In view of the reform process, the strengthened markets that produce rationalizing effects is only one of its results rather than an instrument. In short, economic democracy is the prerequisite to liberalization. Second, we argue that a mature 'democratic' economic system requires increasing roles of the state, trade unions and civil organizations in parallel with market deepening. If Korean economy and society have been suffering from excessive concentration of power, it is due Significantly to the virtual absence of check and monitoring by the civil society.