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FILSAFAT KORUPSI - Direktori File UPI

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country-level factors affect individuals‘ probability of trusting others, as well as how<br />

country-level factors influence the effects of individual-level factors on social trust<br />

concurrently. Hierarchical models not only enable richer analysis but also solve<br />

statistical problems that conventional methods face.<br />

One problem with statistical analysis of social trust is endogeneity, since social trust<br />

may affect inequality —say, through its effect on corruption and support for<br />

redistribution— because trusting people may tend to act more in a trustworthy and<br />

uncorrupt manner. Ideally, we should have longitudinal data that contain substantial<br />

cross-time variations in social trust, inequality, and corruption, or valid instrumental<br />

variables for inequality and corruption. However, neither adequate longitudinal data nor<br />

appropriate instruments are available. In this situation, it is not possible to establish<br />

causal direction through statistical analysis. Yet, by testing multiple implications of<br />

competing hypotheses, I hope I will be able to provide substantial evidence for either the<br />

fairness or the similarity explanation.<br />

For a comparative historical case study of corruption and social trust, I selected South<br />

Korea (Korea, hereafter) as the primary case and Taiwan and the Philippines as<br />

comparison cases. The selection of Korea is natural for me as a Korean national, because<br />

I am most familiar with Korea. Moreover, Korea has been studied by many scholars as<br />

an important example of a ―relatively uncorrupt‖ developmental state, together with<br />

Taiwan, or as a case of crony capitalism, together with the Philippines. Indeed, Taiwan<br />

and the Philippines are ideal comparison cases.<br />

Korea shares many similarities with Taiwan and the Philippines. The initial economic<br />

conditions in the 1950s and 1960s were not much different among these countries. The<br />

three countries had all experienced colonial rule before the World War II, and were all<br />

heavily supported by the US during the Cold War. They all have been experiencing<br />

democratization processes over the last two decades. Despite the similar initial<br />

conditions, however, the levels of corruption and economic development today are quite<br />

different. Taiwan clearly has a lower level of corruption than the Philippines. Not only<br />

do all the available quantitative measures of (perceived) corruption indicate that fact, but<br />

also no qualitative studies exist to the contrary, to my knowledge. Where, then, is<br />

Korea‘s relative level of corruption located, and why is that so?<br />

Various measures of perceived levels of corruption and of experience of corruption<br />

consistently show that Korea‘s level of corruption has been much lower than that of the<br />

Philippines but somewhat higher than that of Taiwan at least since the early 1980s. Also,<br />

the World Values Surveys show that the level of social trust is much higher in Korea than<br />

in the Philippines but lower than in Taiwan. Inequality of income and wealth in Korea is<br />

much lower than in the Philippines and slightly higher than in Taiwan. Thus, the<br />

correlations between inequality, corruption, and social trust among these three countries<br />

are consistent with my hypotheses.<br />

Since the correlations do not tell us about the causal directions as well as causal<br />

mechanisms, I conduct careful process tracing. In particular, I focus on the role of land<br />

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