FINANCIAL MOBILIZATION AND ALLOCATION - THE SOUTH-KOREAN CASE

There are two major competing views on how financial resources may best be mobilized and allocated to accelerate economic growth of developing countries. One emphasizes the importance of competitive financial markets; the other stresses the role of the developmental state. This study examines one of the world's fastest-growing economies during the past few decades, that of South Korea, focusing on its experience with financial resources mobilization and allocation. It finds that a state-centered approach provides a better, albeit imperfect, account of the South Korean postwar experience, in which the state has assiduously influenced the access to, and cost of, available financial resources, going far beyond merely ''getting the prices right.''