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FILSAFAT KORUPSI - Direktori File UPI

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eform and industrial policy. The success of land reform in Korea and Taiwan produced<br />

unusually equal distribution of income and wealth in these countries unlike in the<br />

Philippines where land reform failed. Chaebol-centered industrialization in Korea<br />

gradually increased inequality in income and wealth compared to Taiwan, however,<br />

where economic concentration has been deliberately avoided by the state. I intend to<br />

show that the success and failure of land reform and the initial adoption of industrial<br />

policy were affected very little by corruption and/or social trust but that these exogenous<br />

events produced different levels of inequality, and thereby different levels of corruption<br />

and social trust.<br />

In my case studies of corruption and social trust, I use both the quantitative and<br />

qualitative data available. I use data from the World Values Surveys (1980-2000) and the<br />

Korea General Social Surveys (2003-2004), data on the experience of corruption and the<br />

perceived levels of corruption from multiple sources, journalistic reports of corruption<br />

including the prosecutorial report of illegal political funds, and other relevant data from<br />

secondary sources.<br />

My case study will not only test my and existing theories of corruption and social<br />

trust, but also contribute to understanding development in Korea, and more broadly in<br />

East Asia, by critically reviewing and overcoming the weaknesses in developmental state<br />

literature and crony capitalism literature.<br />

The organization of this thesis is as follows. Chapter II develops a normative theory of<br />

corruption, using Rawls‘ (1971) concept of ‗formal justice.‘ I discuss how corruption,<br />

as a breach of ‗formal justice‘, and inequality, as a problem of ‗distributive justice‘<br />

generally reinforce each other, and why corruption erodes social trust. I also examine<br />

the cases of conflict between formal justice and substantive justice, and propose that<br />

corruption may be justified only when the gain in substantive justice outweighs the<br />

sacrifice of formal justice.<br />

Chapter III provides a theoretical account of why inequality increases corruption, in<br />

particular in democracies and conducts cross-national statistical analysis to test my<br />

hypotheses. Chapter IV examines what explains Korea‘s level of corruption relative to<br />

Taiwan and the Philippines as well as across time within Korea, focusing on the role of<br />

land reform and industrial policy.<br />

In Chapter V, I propose a new theory of social trust that emphasizes the role of fairness<br />

of legal and political institutions and distributive fairness, and present the results of<br />

multilevel hierarchical analyses. In particular, I test multiple implications of the fairness<br />

and similarity explanations. Chapter VI attempts to explain Korea‘s level of social trust,<br />

relative to Taiwan and the Philippines as well as across time within Korea, focusing on<br />

the role of inequality and corruption and the close correlation between political trust and<br />

social trust. Chapter VII summarizes and highlights the scholarly contributions I have<br />

made in this thesis and discusses the research and policy implications.<br />

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