AN EXERCISE IN WORLDMAKING 2009 - ISS

8
Neoliberal Restructuring in
the Aftermath of the 1997 Asian
Financial Crisis: Benevolent
Makeover or Insidious Takeover?
The Case of South Korea
MEKALIA PAULOS AKLILU
“Theory is always for someone and for some purpose.”
Robert Cox
INTRODUCTION
Few individuals anticipated that the much lauded East Asian Miracle
would disintegrate in the abrupt fashion that it did. Much like a whirlwind,
it was cataclysmic, ruthless and unyielding in its impact, mushrooming
with speed and vigor, sweeping economies in its path. Its reverberations
echoed throughout the globe as the world hung precariously
on the precipice of financial armageddon. One such economy was
South Korea, a fateful tiger caught in a tempestuous storm of its own
making, arguably.
This essay aims to address South Korea’s experience with neo-liberalism,
more specifically the underlying motives behind the International
Monetary Fund (IMF)-facilitated neoliberal restructuring that took place
in the wake of its 1997 financial crisis. I will initially start with defining
the concept of neo-liberalism in an attempt to lay the backdrop against
which the implemented policies may be scrutinized. This will be followed
by a brief historical overview of the events which led to South
Korea’s day of reckoning. Subsequently, I will undertake an analysis of
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