Introduction

Abstract

Democratic institutions that give a voice to workers are typically associated with harmonious industrial relations. The quote, however, captures an important observation: the variation in levels of labor conflict new democracies have experienced.¹ While regional experts have found this variation puzzling, this book builds a theoretical framework that accounts for these findings. Like their predecessors in previous waves, capital and labor in late-developing countries have favored democratic institutions when these institutions are perceived as advancing their material interests (Bellin 2002, 2000). Labor in particular stands to gain from negotiations with employers and government representatives over wages and other benefits.

The steady bombardment of televised images of militant strikers wearing red headbands, defiantly raising their fists in the air while sitting cross-legged and chanting menacing slogans, has become indelibly etched in the minds of wary foreign investors … In comparison to other advanced countries, Korea’s industrial relations have been marred with violent protests, exhibited by inflexible and uncompromising behavior between labor and management in response to the government-led restructuring efforts in the corporate sector.

—Korea Herald, January 31, 2001