Korea in Transition
time since 1955. That Japan has since wallowed in indecision over financial reform is further evidence of the difficulty of abandoning a system that worked for so long.
Other recent recipients of IMF bailouts are in similar need of political reform. Indonesia's autocracy is unlikely to change until the death of the aging Suharto, which carries no promises of stability. Thailand answered the call and passed a new Constitution, but has yet to re-form the government. Jeffrey Sachs, the director of the Harvard Institute for International Development, cited Thailand as an example of how the IMF sometimes does more harm than good by intensifying panic. The IMF plan required the Thai government to shut down dozens of banks and securities companies. Sachs argued that "Rather than restoring confidence, the IMF's intervention merely confirmed to investors that they were right to flee." Yet the Korean bailout is not likely to produce such a result, if only because Korea is trying to further political reform, as the current campaign demonstrates.
The three main candidates, Lee Hoi Chang of the majority Grand National Party, Kim Dae Jung of the major opposition party National Congress for New Politics, and Rhee In Je of the New Party by the People, have already held two nationally televised debates in which all of them sounded like reasonable politicians. All three focus on the economy in the debates, vowing to resurrect the nation from its current woes. Also, all three blame the current President, Kim Young Sam, and want to create a neutral committee to investigate in possible presidential wrongdoing. They even used charts to explain their economic plans. Kim, although leading current polls, is faltering, as his ties to the current failing economy are seen as the most extensive of the three, and the election is still too close to call.
Even the mudslinging in this election is remarkably similar to that of most industrialized nations. Lee accused Kim of being "soft" on North Korea. Kim has countered by charging Lee with favoritism, since his sons somehow avoided the military service mandatory for Korean men. These charges have hurt Lee tremendously in the polls, particularly among the working class, which resents the political patronage that enables sons of rich and powerful men to avoid military service.
Some analysts see danger on the horizon, as many opinion polls cite the desire for a strong leader. The fear is that by "strong leader," the people
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