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Different Roads to a Market Economy

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Part of the book series: The Political Economy of the Asia Pacific ((PEAP))

Abstract

The diffusion of new liberalist ideology is accompanied by free trade and the spread of economic interdependence. Market-oriented economic policies such as deregulation and privatization of public enterprises, which have arisen from Britain and America, institutionally spin off from stipulated regulations of international regimes such as the WTO and FTA. The spread of deregulatory policies resulting from internalization of new liberalist norms through international regimes and the intensification of free trade and economic interdependence clearly illustrates the formation of an embedded liberalist order in the international political economy of the post-globalization era (Ruggie 1982). The new liberalist school that claims “the retreat of the state” refuses state intervention in the market and further advocates economic management based on self-regulating market principles. Proliferation of free trade, the emergence of transnational companies, and the movement for deregulation in many different countries instigated the debate on a minimal state that administers and supervises market regulation to a minimal extent. New liberalist reforms such as free markets and the privatization of public enterprises rectify state failures and are reckoned to be essential in attaining economic growth as well as enhancing public interest through restoration of market autonomy (Harvey 2005). From a market-dominant perspective, such an approach asserts the futile state role in the market.

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Notes

  1. 1.

    For U.S. deregulation in the telecommunications sector, see Derthick and Quirk(1985), Horwitz(1989), and Temin and Galambos (1987).

  2. 2.

    For the British experience of deregulation in the telecommunications sector, see Hills(1986), Snow (1986), and Armstrong et al. (1994).

  3. 3.

    Interview in 2002.

  4. 4.

    The contrast between the debates over privatization of AT&T in the United States and KT in Korea reflects the different ideas on liberalization. While the U.S. deregulation process reveals a concern for consumer benefits, the debating process for liberalization in Korea shows its industrial policy orientation. This difference has spawned contrasting results in telecom market restructuring: the Korean government promoted facility-based competition in telecommunications, while the United States promoted service-based competition.

  5. 5.

    This government-initiated licensing system was revised in 1997, when the MIC amended the Telecommunications Business Law, to permit private sector initiation of the licensing process.

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Jho, W. (2014). Different Roads to a Market Economy. In: Building Telecom Markets. The Political Economy of the Asia Pacific. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7888-1_7

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