Influence of U.S. Aid - Comparison Turkey, ROK 1953-1980


Korean Minjok Leadership Academy
KJK



Table of Contents


Chapter I
Chapter III
Chapter II.2 1st Update
Chapter II.3
Chapter II.2
Chapter II.1 2nd Update
Chapter II.1 First Update
Chapter II.1
Bibliography, Third Update
Bibliography, Second Update
Working Table of Contents, Second Update
Bibliography, First Update
Working Table of Contents, First Update
Chapter II
Working Table of Contents
Bibliography



Chapter I. (as of December 1st 2008) . . . go to Teacher's comment

I. Introduction
            Located in the easternmost and the westernmost part of the continent Asia, the Republic of Korea, or ROK, and the Republic of Turkey, or Turkey, would likely have little in common. Not only geographical conditions but also the religious importance in Turkey ? notably Islam ? marks the keen difference from the religiously free status of the Republic of Korea. However, despite the two great differences between two nations, the two nations have significant similarity especially in the modern history.
            The both countries inhabited monarchy before 20th century; the transformation toward democracy, unlike the United Kingdom or France, was not made by the people themselves but by the ruler¡¯s discretion that the democracy would be much more apt. In the industrialization and modernization process of the both countries, the United States is deeply involved; actually, the United States beckoned ROK and Turkey with the huge amount of support to join the democratic force of which the central power rounded up around the flag of North Atlantic Treaty Organization, or NATO. The need of the United States was urgent, since as the Republic of Korea was last resort of the democracy in the continent Asia and the Republic of Turkey was adjacent to the Soviet Union, the biggest enemy of it. The loss of either country would be the unrecoverable damage waging the "Cold War."
            The fact that the two nations are two of those who made notable economic development during the mid and the late 20th century is deeply related with this special attention of the United States. The United States secretary of state of then, George Marshall insisted that not only the military fortification to defend the democratic nations from the physical aggression of communism but also the significant support to delete the possibility of communism sweeping through the unsatisfied citizens was needed. The plan itself was restricted to the Western Europe area including Turkey, but the ROK also received the amount as great as other nations in the Western Europe under the programs later to be discussed.
            The aid received from the United States accounted a significant amount, and contributed a lot in the development of the both countries. The Republic of Turkey established the firm relationship with the United States from the later period of Ismet Inonu and the period coincide with the period when on the Southern part of the Korean peninsula the temporary U.S. government was built for the stabilization of area. Therefore, the time when the two nations started to seek for the huge United States aid is almost similar.
            The difference is made in two things: with what policy the countries used the aid and with which external impact that they had to develop. With the sufficient amount of aid, the Republic of Turkey turned to the economic policy centered on development rather than the distribution, while the social gap problem still existed. This policy led to the political instability in the Republic of Turkey, becoming the continuous coup d'etat and frequent change of the government, which finally led to the negative growth rate of GDP in the mid 1980s.
            In contrast, the Republic of Korea began from the people who needed the aid the most. In other words, the financial aid given was mostly provided to the farmers without appropriate fund and the factory workers without job. The five-year-plan of Chunghee Park represents such policy that continuously inhabited in the Republic of Korea; the plan which got the basic motive from the Stalin's five-year-plan was also appropriate for the development of the Republic of Korea. With pressing the opposing ideals and valuing the economic development as uttermost importance, Chunghee Park during his period could achieve significant development. Of course, it should not be forgotten that the basis of the development was provided by the fund of the United States.
            Also, the two important events affected the economic passage of the two nations; the Korean War and the Cuban Missile Crisis. The former is usually known as the war which deteriorated the basic industry and economy built up in the Republic of Korea after its establishment, but the war also was the opportunity of the Republic of Turkey to increase trade. Due to the war, the increase of the need of the basic commodity was directly connected to the increase of the foreign export of basic commodity from Turkey. The Republic of Turkey also sacrificed significant number of soldiers dispatched as the peacekeeping troops against the North Korea, but the sacrifice was meaningful that their effort led to both the security of the South Korea and trade increase of the home country.
            The Cuban Missile Crisis, seemingly unrelated with Turkey, acted significant impact on Turkey when the actual crisis was over; in other words, it was on the negotiation table that Turkey lost the importance in NATO. In exchange of removing the missile pads in Cuba, the United States promised to take out the missile silo formerly implanted in the Republic of Turkey. This meant both the inability of Turkey to provide effective threat against the Soviet Union and the possibility of the United States to lose the Republic of Turkey. The fact that the Republic of Turkey was involved in the conflict of Cyprus was another factor to engrave then-confused situation of Turkey without the missile of the United States. From then on, the Republic of Turkey went through the long period of economic stagnation with frequent inner violent conflict over the parliament and the presidency.
            The paper will concentrate on the verification of the story suggested above through statistical and historical data provided in the context. Currently, the Republic of Turkey's GDP records much less than that of the Republic of Korea, while it recorded about three times higher than the Republic of Korea in 1953. This paper does not only provide the comprehension of the interesting difference of the two nations but provides how the foreign aid and the international importance can largely influence the nation in this world



Chapter III. (as of December 1st 2008) . . . go to Teacher's comment

III.1 The Korean War and the aid of Turkey and U.S
            The revival process of South Korea made during 1945-1950 period was severely damaged by the breakout of Korean War in 1950. The attack of North Korean force without appropriate warning was the beginning of three years of deterioration of South Korean economy. The invasion was officially advertised by the North Korea as the war against Syngman Rhee, whom the North Korean people called the "traitor of Korean people." The United Nations condemned North Korea's violating of the Article 32 of UN Charter unanimously (1), passing the UN Security Council Resolution 82 (2) a few hours after the breakout of war.
            The war had its scale larger in June 26, 1950 when the president Truman ordered the dispatch of the United States troops ? mostly sea and air forces. The dispatch was a month before the issue of Resolution 83 by the United Nations Security Council, which recommended the member nations of the Security Council that they provide the Republic of Korea with appropriate military and medical aid for peacekeeping. The communist forces supporting the North Korea, mainly the Soviet Union and the People's Republic of China, responded to the Resolution with providing the significant amount of military support. After the three years of total war between the South and the North, the war was ended in stalemate; the two colliding forces drew the line at the 38th parallel and set up an armistice. The three years of war, however, inflicted enormous damage to the development of the Republic of Korea; the most part of the battlefield consisted of the Southern part of the Korean peninsula, and the fact could explain the huge loss of human resources and basic industries.
            The loss of population during the war was overly enormous compared to the scale of the war, which was basically the civil war of Korean peninsula. Approximately, 28.4% of North Korean population or 2.72 million became refugees or were dead due to the war, and South Korea lost 1.33 million of its population (3). The fact that more civilians were killed during the war ? 50% f than soldiers fighting in the front is one of the special characteristics of Korean War: the cruelty. This sacrifice gives credit to the indiscriminative bombing of United States in case of North Korea, and South Korea received its most damage in the earlier part of the war when Seoul was annexed and the government retreated to Pusan. The change in population was not simply the decrease in number but the confusion of the habitat; five million refugees and ten million people who lost their family were the result of the war, including 400,000-600,000 people who migrated from North Korea to South Korea to avoid the bombing of United States. This change was more like "redistributing" of the population all over the Korea, bringing up the momentous stun on the Korean economy and politics.
            The material loss during the war was as great as the loss of population; the damage of South Korea was concentrated from the breakout of war to June 1951, the point when the continuous defeat of South Korea was stopped, and the war was in stalemate. Until then, the net loss of South Korea was in dollar about two billion, which was larger than gross domestic product in 1949. This two billion dollar consists most of the damages from civilian families, followed by factories and educational facilities, each of them accounts for 39.1%, 20.2%, and 20%. The damage in textile industry was the largest, followed by chemical, ceramic, and machine industry. Among the mining industries, the South Korea lost most of its original ability of coal mining. Also, the 80% of power supplies were paralyzed, causing a significant deficiency of electric power both in factories and homes. The growth rate of GDP was negative until 1951, when the most damage of the war was inflicted. However, later on in 1952 and 1953, the United States aid increased and the growth rate was increased a lot.

Table 1 : Republic of Korea, Growth Rate from 1949 to 1953 by Year (4)
Year 1949 1950 1951 1952 1953
Growth Rate 9.7 % -15.1 % -6.1 % 8.0 % 25.7 %


            The hyperinflation of uncontrollable level was also reported from 1950 to 1953 along with the decrease of the production level. This change is relevant to the process of the war; as the war became stagnated, the rate of the both change was slowed down. That is, the rate of inflation was a bit slower and the production index was recovered, rating the pre-war period level in 1953. However, the amount of production couldn¡¯t follow up when the forced production during the Japanese annexation period in 1940. The table shows how the production index and WPI has changed from 1946 to 1953 if the price level of 1947 is supposed 100. It is seen that the amount of production index started to decrease in 1950 when the Korean War broke out, and it recovered the pre-war level starting from 1951. The rate of inflation was also decreased, but it couldn't take back the price level to pre-war period; the price level increased seven-times larger between 1950 and 1951, the period during which the casualties of the South Korea was largest, and the increase went on until 1953 which resulted in almost 27 times higher price level than that of 1949.

Table 2 : The Production Index and Wholsale Price Index, 1946-1953 (1947=100) (5)
Year 1946 1947 1948 1949 1950 1951 1952 1953
Production Index 86.8 100.0 129.2 181.4 114.5 92.2 159.5 208.1
WPI 55.0 100.0 162.9 222.8 348.0 2,194.1 4,570.8 5,951,0


            During the Korean War, the involvement of the countries discussed in this paper - the Republic of Turkey and the United States ? was significant. The effort of United States to keep the Republic of Korea "democratic" was the biggest among the United Nations members involved in the war, for Soviet Union, the rival of United States during the Cold War period, was deeply involved in the aggression of the North Korea.
            The following is the amount of the United States economic assistance with the program the assistance is included, respectively to the years and the programs;

Table 3 : The Economic Assistance to Korea, 1945-1953 (in millions of U.S. Dollars) (6)
GARIOA ECA CRIK UNKRA Total
1945 4.9 - - - 4.9
1946 49.9 - - - 49.9
1947 175.4 - - - 175.4
1948 179.6 - - - 179.6
1949 92.7 23.8 - - 116.5
1950 - 49.3 9.4 - 58.7
1951 - 32.0 74.4 0.1 106.5
1952 - 3.8 155.2 2.0 161.0
1953 - 0.2 158.3 29.6 188.4
Total 502.5 109.1 397.8 31.7 1,040.9


            Although it is sometimes said that the United States imperialists caused the Korean war to breakout, but anyway the United States support during the Korean War period certainly has increased even if the inflation of dollar is counted. The amount of United States aid recorded the peak in 1947 and 1948 during the peacetime, recording 175.4 million and 179.6 million each, and it gradually decreased until 1950 the year when the Korean War broke out. However, calculating the amount of increase after 1950, it is 47.8, 54.5 and 27.4 million each; the actual volume of the aid would be much larger if considered the military aid.
            Although its amount of aid cannot match that of United States and the aid includes the military aid only, considering the size of the nation and its power, the Republic of Turkey certainly provided significant amount of support. Moreover, considering that the diplomatic relationship between Turkey and Korea was virtually nonexistent before the War, its decision to participate in the Korean War was unexpected decision. Officially, the Republic of Turkey explained that the reason to voluntarily dispatch armies was the communism did not ensure the freedom of religion and it wanted to keep the Republic of Korea "free." The total number of Turkish soldiers fought in South Korea during the war was the fourth among the democratic nations, following the United States, the United Kingdom, and Canada. 5,000 Turkish soldiers fought under Tashin Yazici, the only general except those of United States that made memorable fight in South Korea, in "Gunuri" battle against 600,000 Chinese soldiers, with sacrifice of 2,200 men and finally keeping the area for South.

Table 4 - The Amount of Casualties during the Korean War (7)
Strength Dead Wounded Missing in Action Prisoner of War
United States 480,000 36,516 92,134 8,176 7,245
Turkey 5,455 721 2,111 168 216


            With the aid of notably the United States and the Republic of Turkey, the South Korea could mark the end of the war in three years with armistice at 38th parallel, but the casualty was heavy enough to the nation that was just given birth two years before. The United States aid worked a lot in this part of the economic history of the Republic of Korea, which rated much more than the pre-war period, helping the South Korea to recover its production rate before the war and to seek for the further development in economy.

III.2 Turkish Economy during 1950-1953
            The year 1950 marks the beginning of the rule of "Democratic Party" in Turkey. Due to the domestic dissatisfaction toward the single party which governed the whole period of the World War II, the party of Inonu and Kemal. This is not quite due to the misgoverning of the two presidents before but the people's acknowledgement of the democratic ideas caused this change toward the multiparty period. The mood of the change toward the multiparty period culminated in the defeat of Inonu's Republican People's Party (RPP) and a victory for the new formed Democratic Party (DP) in the May 1950 general elections. Due to Singer (1977), the Turkish plan on economy was "the plan not to plan." That is, considering that the most of the core members constituting DP were rural conservatives who didn¡¯t like the deep involvement of governmental hands in market. The beginning of the rule of the Democratic Party from then on for 10 years remarks that the Turkish economy reached certain "level" that the number of people with certain economic well-being was increased.
            Adnan Menderes, the third president of the Republic of Turkey was also from DP; however, he was less conservative than his party was. He was actually more tolerant than Kemal toward the lifestyles and worship practices that were different from the traditional ones. He remained pro-western as the Kemal and Inonu were; he rather enhanced the relationship with the United States and turned hostile against Soviet Union. This policy was one of the reasons he was criticized and later caused the coup d'etat in 1950. In economic view, he followed the ideal of DP. He promoted the economic policies favorable to land owners, and foreign funds. This policy could speed up the development of Turkey in 1950s but caused resentment of the poor people still remaining a lot in the Republic of Turkey, and became the reason of the decrease of the coalesce in Turkey.
            One of the main reasons for the rising of DP in parliament was the steep rise in agriculture output due to the favorable weather condition and the extension of farmland areas with irrigation. This also contributed the rapid development of economy in the Early 1950s. Moreover, the amount of primary export was increased partly due to the boom of world trade due to the Korean War, which created a huge need for the basic commodities and war-related product. From this fact, it is shown that the war broken out in Korea contributed the development of the Republic of Turkey at least a little.
            However, the strategic importance of Turkey in standing against the Soviet Union should not be omitted when talking about the relatively rapid development of it. In 1952, it was confirmed the admission to North-Atlantic Treaty Organization (NATO), as some of the few nations that did not have direct connection to Atlantic Ocean. The important position the Republic of Turkey was occupying then and the stable economic status of it was one of the reasons that the "red wave" which consumed many countries including China could not affect the nation adjacent to the Soviet Union.

Table 5 - The GDP of ROK and Turkey, 1945-1953, in million 1990 dollars (8)
1945 1946 1947 1948 1949 1950 1951 1952 1953
ROK 12,236 13,295 14,295 15,383 16,548 17,800 16,430 17,497 22,570
Turkey 21,297 27,514 29,064 33,003 31,340 34,279 38,667 43,295 48,128


            Table 1 above shows the successful development of the Turkish economy during 1950-1953, which rated the increase of 10,000 million. Although it is inappropriate to compare with the Republic of Korea which suffered the significant war in 1950-1953, the ruling of DP, the conservative party and the policy centered on the economic development was certainly successful in increasing the GDP with resentment which possibly led to the coup d'etat seven years later.

III.3 Comparison
            The both nations have a common keyword in their development: the United States, especially in the period 1950-1953. Both countries were in the important position for democratic world, serving as the "bulwark" against the wave of communism. This led the huge amount of aid from foreign countries, and the most powerful nation in democratic world, the United States, was also the biggest helper for two nations. For South Korea, the United States aid was crucial in both waging the world without total defeat against the Soviet Union and reviving its own economy during and after the war. The Republic of Turkey, with the Western-friendly policy of Adnan Menderes in early 1950s, could receive the significant amount of the attention of the Western nations and could be included in NATO in 1952. From this point, the Republic of Turkey, which formerly remained neutral in the World War II, was turned to the complete democratic nation, the ally of the United States, and the enemy of the Soviet Union.
            The economy of both nations cannot be compared appropriately in this period for the South Korea was waging the war against the North Korea and the Republic of Turkey was in the most peaceful period in the 20th century. Considering GDP only, the Republic of Korea could barely catch up 1945 GDP of Turkey in 1953. This completely different situation of the both nations resulted in different domestic economic policy. President Rhee of the Republic of Korea invested large amount of the United States aid for the well-being of the poor, while the president Adnan Menderes promoted the policy for the rich land-owners.
            In respect of the political stability, although cannot be concretely written down in numbers, actually the South Korea was better-off than the Republic of Turkey. The sudden aggression of the DPRK acted as an unexpected bond among the South Korean people; It is reported that about 500,000 people have migrated from the DPRK to the ROK during the Korean War period (9). As it is seen in the survey of the supporting rate of each presidents of the United States, during the wartime, the supporting rate toward the president usually rises (10). From the assumed fact, it is also assumed that the supporting rate of Rhee possibly was high.
            However, the policy of Adnan Menderes to promote the policy centered for the rich landowners could result in the rapid growth of GDP but had problem in "distribution." The social gap, which had been much less during the ruling of Republican People's Party (RPP) and Inonu, became larger as DP and Adnan came to the power. This instable policy of Adnan resulted in much shorter ruling period as the president than that of Inonu and Kemal and the finish of the ruling of DP with the coup d'etat of angry Turkish poors.

Notes

(1)      ¡°Any Member of the United Nations which is not a member of the Security Council or any state which is not a Member of the United Nations, if it is a party to a dispute under consideration by the Security Council, shall be invited to participate, without vote, in the discussion relating to the dispute. The Security Council shall lay down such conditions as it deems just for the participation of a state which is not a Member of the United Nations.¡± Charter of the United Nations, http://www.hrweb.org/legal/unchartr.html
(2)      Calls for the immediate cessation of hostilities; Calls upon the authorities in North Korea to withdraw forthwith their armed forces to the 38th parallel, Requests the United Nations Commission on Korea: to communicate its fully considered recommendations on the situation with the least possible delay; to observe the withdrawal of North Korean forces from the 38th parallel; to keep the Security Council informed on the execution of this resolution, Calls upon all Member States to render every assistance to the United Nations in the execution of this resolution and to refrain from giving assistance to the North Korean authorities. Free Media Library. http://www.freemedialibrary.com/index.php/UN_Security_Council_Resolution_82
(3)      Cummings, 2005
(4)      http://tongil.byus.net/zboard/view.php?id=history&page=1&sn1=&divpage=1&sn=off&ss=on&sc=on&select_arrange=headnum&desc=asc&no=8
(5)      Kim and Roemer (1979, 29) and Kim and Roemer (1979,35)
(6)      Book of Korea, Economic Statistics Yearbook, various years
(7)      http://en.wikipedia.org/wiki/Korean_War
(8)      The Historical Statistics of the World, http://www.ggdc.net/Maddison/Historical_Statistics/horizontal-file_03-2007.xls
(9)      http://tongil.byus.net/zboard/view.php?id=history&page=1&sn1=&divpage=1&sn=off&ss=on&sc=on&select_arrange=headnum&desc=asc&no=8
(10)      Magleby, David B./ O'Brien, David M./ Light, Paul Charles/ Burns, James MacGregor/ Peltason, J. W./ , Government by the People, Prentice Hall, 2005.




Chapter II.2 1st Update (as of November 17th 2008) . . . go to Teacher's comment


            The Republic of Turkey was established in 1923, after the War of Independence following the weakening and reduction in both the size and the power of the Ottoman Empire after the loss of the First Balkan War in 1912. The War began as a Turkish national movement, but later the nationalists who led the movement enlarged the scale and waged the war against the Entente power. Greece was defeated in the West Turkey and the Armenia was in the East, and the Treaty of Lausanne was signed in July 24, 1923. Ismet Inönü, the one who later becomes the second president of Turkey, was on the negotiation table of the treaty. He included most of the modern boundaries of Turkey except the Syrian province of Alexandretta which was included in 1939. This gains made in the negotiation was a stepping-stone to be established as a complete independent nation with firm boundaries.
            Mustafa Kemal, the first president of the Republic of Turkey, was also the founder of the provisional government in Ankara. He called upon the "Grand National Assembly of Turkey (GNA)" in 23 April 1920, with himself as the speaker of the parliament. Later when the Turkey was liberated and when Kemal became the president of the country, he didn¡¯t stop modernizing the country and adopting the democratic ideas although he was already the age of 42. He had significant help from Fevzi Cakmak, Kazim Ozalp and Ismet Inönü; they were all important government officials in his administration. His reforms ranging from economic, political, and social ones later successfully transformed from former-Islamic country into the independent, secular state.
            However, the Republic of Turkey right after the liberation was not in a quite favorable situation. From 1923 to 1924 the general economic situation showed only a slight improvement (1). Moreover, the exchange of population caused by the Treaty of Lausanne caused severe damage in Turkish labor market, not only because it
            The national leadership, at first, had to deal with the war-torn and long-neglected economy. The government of Turkey responded in two major policies; one was the renegotiation and servicing of the huge external debt and the other was removing the remaining portion of so-called "capitulations" inherited from the Ottoman Empire. The capitulations, granting the right to collect tax and fix import tariff to foreign nations, effectively limited the domestic policy initiatives to revise the foreign trade and fiscal regimes for an improved management of the national economy. Those kinds of external impositions were almost done by 1929.
            In the 1930s, Turkish government, trying to overcome both the disappointing economic performances in 1920s and the worldwide depression of economy, implemented the new set of economic policies from the early 1930s. The policies placed a heavy emphasis on import-substituting industrialization. The development was even more enhanced by the new tariff and import restrictions; not quite being overwhelmed by the imports of foreign, developed countries, the Turkish economy could grow its infant industry. Considering the year 1935, the economic conditions were quite favorable. Despite the prolonged drought, the monetary return from the agriculture was larger. Although the policies in order to foster industrial transition were ripe, still the large part of income depended on agriculture part, so the improvement of agricultural income could contribute to the development of the whole economy. The drought decreased the total amount of the production, the increase of price level and the foreign demand contributed to the increased income. The drive toward industrialization was quite successful in resource mobilization, generating substantial economic growth and structural change in output.
            Etatism, or statism, an ideology in which the government sought the midway between planned-economy of the Soviet Union and the market economy of United States, was adopted by the Turkish government at this point. This system assigns the duty to control savings and entrepreneurial factors to the public sector, not to the government. Affecting largely the financial system and foreign trade of turkey, the appeal to this mixed political system possessed by the government lasted until the 1980s when the liberalization episode of the 1980s.
            Mustafa Kemal Atatürk died in 1938 and the Turkish government had to find the one to replace his leadership ? heroic during the war and respected during the peacetime. Atatürk, not only the war hero to actually establish the Republic of Turkey but also the leader who stabilized the country in which the corruption and the poverty had been prominent, earned even somewhat more respect from the Turkish people. However, in case of deciding the successor, the decision was rather simple. Ismet Inönü, the former prime minister during the period of Mustafa Kemal and the one who implemented the idea of "etatism," was viewed as the most appropriate person to take the responsibility of the president. Although, in 1937, Inonu had to yield the position of the Prime Minister to Celal Bayar, the founder of the first Turkish Bank, due to the desire of Mustafa Kemal to adopt more liberal economic system, it is hard to deny his keen, correct responses to the crisis. Especially in 1929 economic crisis, he implemented the "Five Year Plan" policy of Turkish version in the country. He collected much of the private estate, and the effect was so strong that even these days the 70% of the land is owned by the government. Due to the ability shown as a prime minister of Turkey, he became the second president of the Republic of Turkey, gaining the official title of "Milli Sef" or "National Chief."
            In World War II, Turkey was officially neutral but Inonu actually tried to stand as a quasi-neutral country skewed to the allied forces, willing to take the minimum damage possible and to take the advantage of the victory of the allied forces. However, due to the distortion of the foreign market due to World War II, the newly implemented "Five Year Plan," or the second industrial plan implemented from 1938 to 1944 was disrupted; it yielded something, but not as much as it did years ago. In the early 1940s, regardless of its effort, Turkey couldn't avoid the inflicting external economic environment, including black market, commodity shortage and the high inflation.
            After finishing World War II without deep involvement, however, the Republic of Turkey could overdo its original growth rate in the 1923-38 period, 7.4 percent, by the growth rate of 7.9 percent in 1948-53(the rate was 1.2 period during World War II) due to the two factors. The Marshal Plan and the Truman Doctrine of the United States adopted after World War II reacted to the presence of a huge communist country adjacent to the Republic of Turkey: the Soviet Union. Not only United States but also the countries of the Western Europe provided Turkey with significant amount of support, including the nuclear missiles implemented against the Soviet Union. However, these supports were based on the assumption that the Republic of Turkey assign somewhat significant part of its economy to the primary production instead of industrialization for the sake of the European and United States economy.
            Also, provided by the fundamental economic ground, the Turkish people became concerning of their political rights. Until the election of Inonu, the right of the people to elect their executive leader wasn¡¯t provided. Also, the Turkey consisted of the single party, providing less diverse opportunities of selection. The Republic of Turkey, therefore, began to morph into a multiparty democratic government right after World War II.



Chapter II.3 (as of November 17th 2008) . . . go to Teacher's comment


            Since the independent nation did not exist in Korean peninsula until 1945 and it was three years from the year that the Republic of Korea came into existence, it is hard to compare the Republic of Korea and the Republic of Turkey before 1945. At the point of time, the Korean Empire, the country that had inherited Chosun, was under the regime of the Japan and the amount of production does not correctly display the status of economy of the Korea at that time; Japanese took advantage of the huge portion of the resources and products, which caused the shortage of supply in Korean peninsula.
            However, to understand the background of the difference of economic status of two countries after the liberation of Korea, it is necessary to acknowledge the difference of the positions of two countries. The Republic of Turkey was already stabilized at the beginning of World War II and could choose the stance to remain; Kemal Mustafa Atatürk decided to remain in neutral stance, not involved in World War II at all. The Republic of Turkey could avoid becoming one of the battlefields of the War due to this stance. This let Turkey almost unaffected by the turbulence of World War II.
            In contrast, the Republic of Korea was a colony through the whole term of World War II and was not able to run an independent economy during the period; although the modernization due to the Japanese need was made, such development in industry didn't contribute much for the Republic of Korea. The thirty-three-year of colonization marked a huge abnormal gap in the development history of Korea, destining the economic hardship after the liberation.
            The two countries coincide in the fact that they both adopted the ideology called "Etatism" for the further development but the exact situations of two countries when the ideology was adopted were different. The both countries, from the point when they were built, adopted central system in which not only the "invisible hands" but also the governmental "hands" affect the market. Although the both countries suffered foreign annexation period for several years, the Republic of Korea suffered much longer period in "intensive" ? for the case of Turkey, the foreign countries simple ruled the "land" and no specific exploitation was made on the Turkish people ? manner. Therefore, the difference of the economic status in 1945, the year the Republic of Korea was liberated, was almost inevitable.
            During the five years before the Korean War, the growth rate of the Republic of Korea surpassed that of Turkey, however, even though the Republic of Korea lacked the very basic industry for the production. Most industries implemented in Korea were for the successful war-waging of Japan during the WWII, so from the beginning the Republic of Turkey had much more possibility to growth than Korea had. However, though in the total amount of production or the Gross Domestic Product Turkey was greater, at least in growth rate, the Republic of Korea could
            One of the significant reasons was the difference of intensity of investment from foreign countries, especially of United States on the Republic of Korea. The Republic of Turkey was also the target of Marshall Plan and received the significant amount from the United States. However, the Republic of Korea was under the agency called USAMGIK for three years between the liberation and the establishment of republic so it had much more binding relationship than the country which joined the allied forces at the last moment of the World War II ? and that was almost everything of the relationship between the Republic of Turkey and the United States at that time. Also, the geographic condition of Korea ? facing one of the allies of the Soviet Union and located on the easternmost part of Asian continent ? contributed in alluring attention to the nation. The amount of investment was comparably too large to be invested on seemingly hopeless nation; the fund was for the rebuilt of the country and it could boost the speed of growth of the Republic of Korea in the manner otherwise should have been impossible. The economic policy of Syngman Rhee was much different from that of Inönü or Kemal in that it leaned much more on the foreign aid. Such leniency later caused the currency crisis in 2000; nonetheless, the great deal of foreign aid received contributed a lot in the economic development of Korea from 1960s, maturing in Early 1980s
            The presence of the Democratic People¡¯s Republic of Korea(DPRK) was a huge pull-factor attracting foreign aid to the South Korea. The threat of tangible and dangerous enemy to South Korea was also the danger to the efforts of democratic nations, notably United States, to circumscribe communism in their current territory. The reason that the United States established a provisional government for three years and supported the country for numerous aid programs such as GARIOA (1) was due to the inevitable worry that the South Korea might be devoured to the Soviet Union and North Korea.
            In contrast, the fact that after a year the Republic of Turkey was one of the members of United Nations that sent the South Korea the peacekeeping troops sufficiently shows the stable and firm situation of the Republic of Turkey at the point of time. Despite the fact that it was adjacent to the Soviet Union, it was of low possibility that the Soviet Union would wage a war against the Republic of Turkey; rather, the presence of the missile pad implemented in Turkey by United States served as a threat to the Soviet Union. In other words, the Republic of Korea was much poorer than the neighboring countries but the Republic of Turkey was rather a notable force of Middle East due to the political stability of Inonu and Kemal and comparably long existence as an independent nation without a war.
            It is true that at this point the Republic of Korea bore much more problems than Turkey did. From basic education to industry, in economic scale, the Republic of Korea started from nearly nothing compared to the Republic of Turkey. However, the large difference of economic level between two nations rather clearly reveals the large effect of foreign aid. Even in the situation of "almost nothing," the importance of position in global politics can grant the large amount of foreign aid which can trigger the unexpected rate of economic growth. The importance of position occupied by South Korea really helped its economy even after the total collapse of Korean War, triggering the quick revival again.

Notes
(1)      Governmental Appropriation for Relief in Occupied Areas. Chapter 2-1.



Chapter II.2 (as of October 21st 2008) . . . go to Teacher's comment


            The Republic of Turkey was established in 1923, after the War of Independence following the weakening of the Ottoman Empire during the Balkan War in the late 1910s. The War was, at the beginning, the Turkish National Movement, but later the nationalists waged the war against the Entente power and waged the War. Greece was defeated in the West Turkey and the Armenia was defeated in the East, and the Treaty of Lausanne was signed in July 24, 1923. Ismet Inonu, the one who later becomes the second president of Turkey, was on the negotiation table of the treaty. He included most of the modern boundaries of Turkey except the Syrian province of Alexandretta which was included in 1939. The revolution did not only provide Turkey with republican system and firm boundaries but also declare the World that the Turkey could work as an independent nation.
            Mustafa Kemal, the first president of the Republic of Turkey, was also the founder of the provisional government in Ankara. He called upon "Grand National Assembly of Turkey (GNA)" in 23 April 1920, with himself as the speaker of the parliament. Later when the Turkey was liberated at the age of 42 and when he became the president of the country, he didn¡¯t stop modernizing the country and adopting the democratic ideas. He had significant help from Fevzi Cakmak, Kazim Ozalp and Ismet Inonu; they were all important government officials in his administration. His reforms ranging from economic, political, and social ones later successfully transformed from former-Islamic country into the independent, secular state
            However, the Republic of Turkey right after the liberation was not in a quite favorable situation (1). From 1923 to 1924 the general economic situation showed only a slight improvement. Moreover, the exchange of population caused by the Treaty of Lausanne caused severe damage in Turkish labor market, not only because it
            The national leadership, at first, had to deal with the war-torn and long-neglected economy. The government of Turkey responded in two major policies; one was the renegotiation and servicing of the huge external debt and the other was removing the remaining portion of so-called ¡°capitulations¡± inherited from the Ottoman Empire. The capitulations, granting the right to collect tax and fix import tariff to foreign nations, effectively limited the domestic policy initiatives to revise the foreign trade and fiscal regimes for an improved management of the national economy. Those kinds of external impositions were almost done by 1929.
            In 1930s, Turkish government, trying to overcome both the disappointing economic performances in 1920s and the worldwide depression of economy, implemented the new set of economic policies from the early 1930s. The policies placed a heavy emphasis on import-substituting industrialization. The development was even more enhanced by the new tariff and import restrictions; not quite being overwhelmed by the imports of foreign, developed countries, the Turkish economy could grow its infant industry. Considering the year 1935, the economic conditions were quite favorable. Despite the prolonged drought, the monetary return from the agriculture was larger. Although the policies in order to foster industrial transition were ripe, still the large part of income depended on agriculture part, so the improvement of agricultural income could contribute to the development of the whole economy. The drought decreased the total amount of the production, the increase of price level and the foreign demand contributed to the increased income. The drive toward industrialization was quite successful in resource mobilization, generating substantial economic growth and structural change in output.
            Etatism, or statism, an ideology in which the government sought the midway between planned-economy of the Soviet Union and the market economy of United States, was adopted by the Turkish government at this point. This system assigns the duty to control savings and entrepreneurial factors to the public sector, not to the government. Affecting largely the financial system and foreign trade of turkey, the appeal to this mixed political system possessed by the government lasted until the 1980s when the liberalization episode of the 1980s.
            Mustafa Kemal Ataturk died in 1938 and the Turkish government had to find the one to replace his heroic leadership. Ataturk, not only the war hero to actually establish the Republic of Turkey but also the leader who stabilized the country in which the corruption and the poverty had been prominent, earned even somewhat more respect from the Turkish people. However, in case of deciding the successor, the decision was rather simple. Ismet Inonu, the former prime minister during the period of Mustafa Kemal and the one who implemented the idea of "etatism," was viewed as the most appropriate person to take the responsibility of the president. Although, in 1937, Inonu had to yield the position of the Prime Minister to Celal Bayar, the founder of the first Turkish Bank, due to the desire of Mustafa Kemal to adopt more liberal economic system, it is hard to deny his keen, correct responses to the crisis. Especially in 1929 economic crisis, he implemented the "Five Year Plan" policy of Turkish version in the country. He collected much of the private estate, and the effect was so strong that even these days the 70% of the land is owned by the government. Due to the ability shown as a prime minister of Turkey, he became the second president of the Republic of Turkey, gaining the official title of "Milli Sef" or "National Chief."
            In the World War II, Inonu tried to stand as a quasi-neutral country skewed to the allied forces, willing to take the minimum damage possible. However, due to the distortion of the foreign market due to the World War II, the newly implemented "Five Year Plan," or the second industrial plan implemented from 1938 to 1944 was disrupted; it yielded something, but not as much as it did years ago. In the early 1940s, regardless of its effort, Turkey couldn't avoid the inflicting external economic environment, including black market, commodity shortage and the high inflation.
            After finishing the World War II without deep involvement, however, the Republic of Turkey could overdo its original growth rate in 1923-38 period, 7.4 percent, by the growth rate of 7.9 percent in 1948-53 (the rate was 1.2 period during the World War II) due to the two factors. The first one is the Marshal Plan of the United States adopted after the World War II. Not only United States but also the countries of the Western Europe provided Turkey with significant amount of support, including the nuclear missiles implemented against the Soviet Union. However, these supports were based on the assumption that the Republic of Turkey assign somewhat significant part of its economy to the primary production instead of industrialization for the sake of the European and United States economy.
            Also, provided by the fundamental economic ground, the Turkish people became concerning of their political rights. Until the election of Inonu, the right of the people to elect their executive leader wasn't provided. Also, the Turkey consisted of the single party, providing less diverse opportunities of selection. The Republic of Turkey, therefore, began to morph into the multiparty democratic government right after the World War II.

Notes

(1)      The New International Yearbook, 1924, p.743



Chapter II.1 2nd Update (as of September 29th 2008) . . . go to Teacher's comment

II. Before Korean War

II.1. Liberated Korea

II.1.1 Effect of Japanese Forced Annexation Period
            China was a suzerain to Korea, but after 1876, the year which the Treaty of Kang-Hwa was made, Japan began to exert more influence on Korea, got dominance through the victories of Sino-Japanese War (1884-1885) and Russo-Japanese War (1904-1905), and finally took over the sovereignty of Korea in 1910. Korea, or Korean Empire at that time, was the only country in Asia in which the nation was totally under the control of other nation, or colony. Until 1945 in which Japanese surrendered to the Allied Force, Korea was so exploited in every aspect that even after liberation, it was hard to expect that Korea would emerge as one of the notable nations in Asia. The beginning of so-called "the Miracle of the Han River," a parody of "the Miracle of the Rhein River," was the emptiness of high-qualified labor and unimaginably critical poverty.
            Actually, although the 35 years of the colonial period would be unforgettable for Koreans, the period industrialized Korea; however, the problem was that the industrialization was for the better-off of Japanese expansion. Koreans was able to record relatively high rate in both agricultural and industrial field at that time; also, the portion of manufacturing industry occupies was increased, and it would be not very wrong to say that the reform to the industrialized nation was made, or forced, by Japan. The share of manufacturing and mining sectors in total industry was increased from 4.1% in 1910-20 to 26.4% in 1938-40 (1). However, most of those products were exported, and the Koreans were practicing extremely harsh physical labor both in Korea and in Japan. After the liberation, most of these industries weren¡¯t as effective as before, because it wasn¡¯t so suitable for independent nation. It was hard to transform the style of economy created throughout 35 years, and there were few people who can undertake the process, and little amount of labor to help the process, not to mention the lack of funding and basic industry.
            The former main industry of Korea, agriculture, was distorted during the Japanese colonial period and could not be effective after World War II. The amount of land controlled by Japan increased from 7% in 1910, the year in which Annexation Treaty of 1910 was made, to 52.7% in 1932. In comparison, the land owned by Korean farmers decreased from 63.2 to 47.3%. (2) However, they didn't irrigated by themselves; they adapted feudal system and let Koreans to work. The difference with the feudal system was one thing; Japanese didn¡¯t pay for the farmers, and rather they took 50-70% of the harvest as a rent of the land. Since almost all landowners were Japanese and 77% of Korean farmers were tenants, this system crippled the agricultural system of Korea. (3)
            Moreover, the amount of available labor force was running low due to the forced conscription and draft by Japan. From 1942, due to the labor shortage caused by the Battle of Midway and continuous affair in Manchuria, Japanese government enacted National Mobilization Law which enabled involuntary conscription of Korean workers not only for Korean factories but also for factories in Manchukuo and Japanese mainland. Due to this law, 5,400,000 Koreans were conscripted and sent abroad. Later in 1946, 1,460,000 Koreans were able to get back to their home country, but still about 4 million Koreans were left in Japan, Manchuria, and they are still living there until 2008, today. It is not a big deal for current Korean labor market, but the lack of 4 million affected greatly the South Korea after liberation, since the total population of South in 1948 was only 20,041,000 (4) and about one fifth of its population was missing.
            The scarcity of educated people was also the one of the biggest obstacle faced by liberated Korea; political chaos was the situation of the Korea after the Japanese retreat. The United States will lose democracy in mainland Asia if it loses Korean peninsula, so it was putting its best effort to keep Korea democratic. Therefore, the emergence of the leader that could tranquilize the domestic chaos and respond to foreign intervention was needed, but there was only a few, such as Syngman Rhee, who satisfied the condition.
            The situation was worse for the case of the common people, since Japanese government provided ¡°Imperial Citizen Forming¡± education, which was to subordinate Korean people as slaves of Japanese empire. Students were imposed to learn Japanese culture instead of Korean one in the process of such citizen forming. It was, in abstract, a universal education, but the one limited to elementary school level; there were only a few going up to the high school level and even fewer Koreans in the universities.
            In this situation, it wouldn't be able for Koreans to use Japanese left-over industries, since they weren't able to figure out how to run the factory (5). The Japanese effort to merge Korean economy as a part of Japan included a lot of infrastructure, such as schools, railroads, and utilities. Due to the end of the Japanese involvement in Korean economy, the profit was distributed only among Koreans which it seems to be sure that Korean workers would have earned more, but due to the complete lack of managerial force, South Korean Manufacturing in 1948 reached 15% of its level in 1939 (6). The atomic bomb in Hiroshima were able to liberate the South Korea, but the economic status wasn't improved very much.

II.1.2 Syngman Rhee's Administration and the Division of Korea
            Provisional People's Committee for the Five Provinces were established in Korea even during the period of Japanese forced annexation, but it Yalta Conference, held from February 9th to February 14th in 1945, reaffirmed the Cairo Declaration which consisted of the clause that Korea should be independent and free, and also confirmed that the declaration would be fulfilled "in proper moment" and the overtaking of Korea by certain country is not preferable, which Soviet Union and United States both agreed. However, when the admirals of each country in Allied Forces met, they agreed to divided post-war Korean peninsula of which the North occupied by Soviet Union and the South occupied by United States. In August 15 of 1945, U.S. Army Military Government in Korea (USAMGIK) was built in the Southern Part of Korean peninsula to control the economic, political, social turmoil of South Korea and to help the nation to function as independent state. However, not only the departure of the Japanese but also the lack of resource was problematic; while the North Korea was rich of mineral ores and power supply, the South Korea was abundant of agricultural resources, and this difference caused the slow development of heavy industry in South Korea. USAMGIK redistributed Japanese-owned land and provided modern education in order to provide the basis for further development. It also adopted the trade regulation to cut down smuggling and attempted to control the inflation by distributing essential products and cutting down the prices deliberately by the government.
            However, Economic stagnation in Korea was so severe that such efforts cannot dissolve the poverty much. Average rice production for 1945 to 1963 was 9.3 percent below that for 1940-1944. As mentioned before, the amount of manufacturing in 1948 was 15% of the 1939 level. A little recovery was made from 1947 to 1949 as a result of tungsten export and increase in industrial production, but three consecutive years of the Korean War caused the sharp decrease again. Also, prior to 1953, even if we consider the "peaceful" period, the amount of export and import never has exceeded the level of that in 1940 (7). The Republic of Korea needed newly created economic system that is suitable for independent economy that can feed itself and also can do successful trade in World market, but it wasn¡¯t so easy due to the lack of the natural resource and the power supply, which were abundant in North Korea.
            The problem of lack of mineral ores and energy production in South Korea continued to slow down the development after the building of the government. In 1948, Soviet Union announced the production goal of 9 millions of pig iron; chemical fertilizer 332,000; salt 158,000; cotton 1,400; and rayon yarn 1,440, for DPRK, which was fairly about the amount produced during the colonial period. In contrast, in Republic of Korea, the main industry, graphite producing, amount of 103,000 metric tons, was only one-fourth of the amount of producing in 1944, during the colonial period. The action severely damaged the South was the Soviet policy of cutting down the power supply going to the South (8); though the two nations were not at the war, due to the cold war between the United States and the Soviet Union, the Soviet Union took this action and the South Korean factories were critically damaged since 80% of South Korean energy was supplied from the North. (9)
            South Koreans took steps to implement power plants in Inchon and Pusan but it wasn¡¯t easy either, since most of the major mineral resources, such as iron, coal, and gold were found in the North. This lack of material slowed down the mining of anthracite coal and slowed down the development of Republic of Korea. The official rate of exchange in 1948 was 450 won to 1 dollar, but it was actually traded with 750 won or even with 2000 won to 1 dollar; this meant that Korean won valued less than it officially was. What made the situation worse was the population; the population of the Republic of Korea was about the double the size of that of the Democratic People's Republic of Korea, while occupying only 44% of the Korean peninsula. This can mean the more supplies of labor, but also can mean the more need to consume. The Republic of Korea couldn't adopt all these possible laborers into manufacture, so the larger population only resulted in larger consumption.
            In this period, a huge part in the South Korean budget leaned on the foreign aid. The aid, which came a lot from the United States, was used in order to resolve emergency need such as food, clothing, medicines, fuel, and fertilizers, not to reconstruct the industrial system of South Korea; the provision of the basic goods were necessary for newly liberated South Korea. Among a number of foreign aid agencies, The Government Appropriation for Relief in Occupied Areas (GARIOA) first began providing aids continuously USD 60,000,000, and the aid consist nearly half of the total aid provided to South Korea from 1945 to 1953. The program was once repealed in 1950 due to the opposition of the Administration's policy toward China and the belief that South Korean government was corrupted and couldn¡¯t use the fund appropriately, but the president Harry S. Truman and the secretary of state Dean Acheson urged the house to repeal its veto and the new bill to support the Republic of Korea was enacted in February 10th although the amount was decreased by USD 30,000,000 from the original amount the Harry S. Truman demanded. Also, until 1948, it exclusively provided South Korea with foreign aid. The next one came to support South Korea was Economic Cooperation Administration (ECA) program, with $150,000,000 expenditure approved in the U.S. house foreign affairs committee on June 30 and passed in Senate in October 12 despite the fact that the actual provision of the fund began by the end of the year, emphasizing capital development and restrictive economic policies. The United States Congress, while providing significant amount of fund, set a strict two standards; first, the Republic of Korea should aim to stabilize the economy, especially the price level, and second, the construction of the coalition government consisting of both South Koreans and Northern communists would directly cancel the support. The Republic of Korea fulfilled the both requests and as a result the South Korea succeeded in slowing down the rapid rate of inflation.
            The amount of United States dollars provided during 1945-1950 by the four agencies which supported the South Korea most was approximately 585 million dollars, among which the amount provided by GARIOA occupies about the half. Considering the fact that the amount of currency printed by the bank of Korea was 49,100,000,000 won, which is approximately 109,111,000 dollars in the official won-to-dollar rate of exchange in 1948.
            The liberated Korea, for five years before the Korean War and three years as an independent nation, underwent severe economic depression and hardship, but the nation could have a short relief before the war due to the economic aid provided. It does not necessarily mean that the Republic of Korea was free from poverty; rather, it still was in relative poverty due to the lack of basic industry. It simply means that the Republic of Korea was taking slow step to get out of poverty and was partly successful though there were some obstacles. Foreign aid, especially the aid from the United States, was large in amount, and was extremely useful in that it also provided the direction that the fund should be used, although it was nearly forced. If the Korean War didn't break out in June 25, 1950, the development of the South Korea would be accelerated. However, the production level of South Korea decreased to 1945 level during the Korean War, which could barely rich the ante-war level in 1953.

Notes

1.      Susan M. Collins, Won-Am Park, External Debt and Macroeconomic Performance in South Korea, page 160
2.      Statistics of Japanese Genocide and Mass Murder, http://www.hawaii.edu/powerkills/SOD.CHAP3.HTM
3.      Part III of Legacies of Japan war, http://daga.dhs.org/daga/press/urm/fingerprinting/chap03.htm
4.      Britannica Book of the Year, 1949, p. 380
5.      Economic Growth and Human Development in the Republic of Korea, 1945~1992 by Jong Hwa Lee, http://hdr.undp.org/docs/publications/ocational_papers/oc24aa.htm
6.      Kim and Roemer, 1979
7.      BOK. Economic Review 4(1949):51, and BOK, Annual Economic Review, 1955, quoted by Susan M. Collins, Won-Am Park, External Debt and Macroeconomic Performance in South Korea, page 162.
8.      Britannica Book of the Year, 1948, page 380.
9.      Britannica Book of the Year, 1949, page 380



Chapter II.1 First Update (as of September 20th 2008) . . . go to Teacher's comment

II. Before Korean War

II.1. Liberated Korea

II.1.1 Effect of Japanese Forced Annexation Period
            Korea, through the treaty of annexation in 1910, was under Japan after the Annexation treaty of 1910. Korea, or Korean Empire at that time, was the only country in Asia in which the nation was totally under the control of other nation, or colony. Until 1945 in which Japanese surrendered to the Allied Force, Korea was so exploited in every aspect that even after liberation, it was hard to expect that Korea would emerge as one of the notable nations in Asia. The beginning of so-called "the Miracle of Han River," a parody of "the Miracle of Rhein River," was the emptiness of high-qualified labor and unimaginably critical poverty.
            The most significant damage for Koreans was the total collapse of agricultural industry, because farming was the main industry in Korean peninsula from the beginning of Korean civilization. The amount of land controlled by Japan increased from 7% in 1910, the year in which Annexation Treaty of 1910 was made, to 52.7% in 1932. In comparison, the land owned by Korean farmers decreased from 63.2 to 47.3%. (1) However, they didn't irrigated by themselves; they adapted feudal system and let Koreans to work. The difference with the feudal system was one thing; Japanese didn't pay for the farmers, and rather they took 50-70% of the harvest as a rent of the land. Since almost all landowners were Japanese and 77% of Korean farmers were tenants, this system crippled the agricultural system of Korea. (2)
            Moreover, the amount of available labor force was running low due to the forced conscription and draft by Japan. From 1942, due to the labor shortage caused by the Battle of Midway and continuous affair in Manchuria, Japanese government enacted National Mobilization Law which enabled involuntary conscription of Korean workers not only for Korean factories but also for factories in Manchukuo and Japanese mainland. Due to this law, 5,400,000 Koreans were conscripted and sent abroad. Later in 1946, 1,460,000 Koreans were able to get back to their home country, but still about 4 million Koreans were left in Japan, Manchuria, and they are still living there until 2008, today. It is not a big deal for current Korean labor market, but the lack of 4 million affected greatly the South Korea after liberation, since the total population of South in 1948 was only 20,041,000 (3) and about one fifth of its population was missing.
            The scarcity of educated people was also the one of the biggest obstacle faced by liberated Korea; political chaos was the situation of the Korea after the Japanese retreat. The United States will lose democracy in mainland Asia if it loses Korean peninsula, so it was putting its best effort to keep Korea democratic. Therefore, the emergence of the leader that could tranquilize the domestic chaos and respond to foreign intervention was needed, but there was only a few, such as Syngman Rhee, who satisfied the condition.
            The situation was worse for the case of the common people, since Japanese government provided "Imperial Citizen Forming" education, which was to subordinate Korean people as slaves of Japanese empire. For instance, in the course of Imperial Citizen Forming, students learnt how to bow to Shinto Shrine, the polytheistic and tradition religion of Japan, instead of Korean history. It was, in abstract, a universal education, but the one limited to elementary school level; there were only a few going up to the high school level and even fewer Koreans in the universities.
            In this situation, it wouldn¡¯t be able for Koreans to use Japanese left-over industries, since they weren¡¯t able to figure out how to run the factory. (4) The Japanese effort to merge Korean economy as a part of Japan included a lot of infrastructure, such as schools, railroads, and utilities. Due to the end of the Japanese involvement in Korean economy, the profit was distributed only among Koreans which it seems to be sure that Korean workers would have earned more, but due to the complete lack of managerial force, South Korean Manufacturing in 1948 reached 15% of its level in 1939. (5) The atomic bomb in Hiroshima were able to liberate the South Korea, but the economic status wasn¡¯t improved very much.

II.1.2 Syngman Rhee's Administration and the Division of Korea
            Provisional People's Committee for the Five Provinces were established in Korea even during the period of Japanese forced annexation, but it Yalta Conference, held from February 9th to February 14th in 1945, reaffirmed the Cairo Declaration which consisted of the clause that Korea should be independent and free, and also confirmed that the declaration would be fulfilled "in proper moment" and the overtaking of Korea by certain country is not preferable, which Soviet Union and United States both agreed. However, when the admirals of each country in Allied Forces met, they agreed to divided post-war Korean peninsula of which the North occupied by Soviet Union and the South occupied by United States. The agreement became the fact when in May 1948 the Southern part of Korea held an election solely and elected Syngman Rhee as its first president. The government was set upon the United States support in August 15th, 1948, while the people of Korea didn¡¯t even understand what democracy means.
            While Kim Il Sung established Democratic People¡¯s Republic of Korea in 1948 and provided "forced" stability to the nation with North Korean People's Army (NKPA), South Korea, embracing the value of democracy and capitalism, was slow in dealing with the chaos. Dealing with post-war period which can be described as "complete lack of everything : labor force, funding, technology, education, and so forth," Republic of Korea, relatively, wasn¡¯t so bright; Syngman Rhee was a student of United States, and though it is not sure if the place of his education contributed to his political color, but he were quite leaning on the power of United States.
            However, United States weren¡¯t providing South Korea with as much aid as it gave during the period of Park later, since the country couldn¡¯t expect the aggression of North Korea so soon. DPRK economy was running under the supervising of Kim Il Sung, and actually, Soviet Union. In 1948, announced the production goal of 9 millions of pig iron; chemical fertilizer 332,000; salt 158,000; cotton 1,400; and rayon yarn 1,440, while in Republic of Korea, the main industry, graphite producing, amount of 103,000 metric tons, was only one-fourth of the amount of producing in 1944, during the colonial period. The action severely damaged the South was the Soviet policy of cutting down the power supply going to the South; though the two nations were not at the war, due to the cold war between the United States and the Soviet Union, the Soviet Union took this action and the South Korean factories were critically damaged since 80% of South Korean energy was supplied from the North. (6)
            South Koreans took steps to implement power plants in Inchon and Pusan but it wasn¡¯t easy either, since most of the major mineral resources, such as iron, coal, and gold were found in the North. This lack of material slowed down the mining of anthracite coal and slowed down the development of Republic of Korea; it was later when the United States noticed that Republic of Korea was standing right before the "enemy," or communists, and invested on the Republic of Korea during the Chung-hee Park's Period.
            The economic status of South Korea can be seen without paying much attention to the relative position with that of North Korea when considering the financial data of 1948. The official rate of exchange was 450 won to 1 dollar, but it was actually traded with 750 won or even with 2000 won to 1 dollar; this meant that Korean won valued less than it officially was. As described above, the manufacturing was paralyzed due to the lack of power supply and education, but post-war country needed lots of supply. This caused the inflation, but the desperate economic status of Republic of Korea couldn¡¯t help the rise of the value of Korean won in the currency market.
            What made the situation worse was the population; the population of the Republic of Korea doubled that of the Democratic People's Republic of Korea, while occupying only 44% of the Korean peninsula. This can mean the more supplies of labor, but also can mean the more need to consume. The Republic of Korea couldn't adopt all these possible laborers into manufacture, and the larger population did not help the economy of South Korea.
            The Democratic People's Republic of Korea was not a prominent power; rather it was also exploited by 35 years of Japanese reign and was without firm basis to adopt socialistic economy or powerful army. The situation was quite similar for the Republic of Korea, but the difference was made since the Soviet Union was planning of getting rid of the Republic of Korea and creating wholly communistic mainland of Eastern Asia, while United States were mostly "blocking" the expansion and wasn¡¯t expecting the expansion on the East Asia. Lacking of power supply, major materials for heavy industry, and significant foreign support led to later losing of most territory of South Korea during the Korean War.

Notes

1.      Statistics of Japanese Genocide and Mass Murder
2.      Part III of Legacies of Japan war
3.      Britannica Book of the Year, 1949, p. 380
4.      Jong Hwa Lee
5.      Kim and Roemer, 1979
6.      Britannica Book of the Year, 1949, page 380



Chapter II.1 (as of September 19th 2008) . . . go to Teacher's comment

II. Before Korean War

II.1. Korea colonial period under Japan
            Korea was "legally" under Japan after the Annexation treaty of 1910. Korea, or Korean Empire at that time, was the only country in Asia in which the nation was totally under the control of other nation, or colony. Until 1945 in which Japanese surrendered to the Allied Force, Korea was so exploited in every aspect that even after liberation, it was hard to expect that Korea would emerge as one of the notable nations in Asia. The beginning of so-called "the Miracle of Han River," a parody of "the Miracle of Rhein River," was the emptiness of high-qualified labor and unimaginably critical poverty.
            The most significant damage for Koreans was the total collapse of agricultural industry, because farming was the main industry in Korean peninsula from the beginning of Korean civilization. The amount of land controlled by Japan increased from 7% in 1910, the year in which Annexation Treaty of 1910 was made, to 52.7% in 1932. In comparison, the land owned by Korean farmers decreased from 63.2 to 47.3%. (1) However, they didn¡¯t irrigated by themselves; they adapted feudal system and let Koreans to work. The difference with the feudal system was one thing; Japanese didn¡¯t pay for the farmers, and rather they took 50-70% of the harvest as a rent of the land. Since almost all landowners were Japanese and 77% of Korean farmers were tenants, this system crippled the agricultural system of Korea. (2)
            Moreover, the amount of available labor force was running low due to the forced conscription and draft by Japan. From 1942, due to the labor shortage caused by the Battle of Midway and continuous affair in Manchuria, Japanese government enacted National Mobilization Law which enabled involuntary conscription of Korean workers not only for Korean factories but also for factories in Manchukuo and Japanese mainland. Due to this law, 5,400,000 Koreans were conscripted and sent abroad. Later in 1946, 1,460,000 Koreans were able to get back to their home country, but still about 4 million Koreans were left in Japan, Manchuria, and even in Central Asia.
            The scarcity of educated people was also the one of the biggest obstacle faced by liberated Korea; political chaos was the situation of the Korea after the Japanese retreat. The United States will lose democracy in mainland Asia if it loses Korean peninsula, so it was putting its best effort to keep Korea democratic. Therefore, the emergence of the leader that could tranquilize the domestic chaos and respond to foreign intervention was needed, but there was only a few, such as Syngman Rhee, who satisfied the condition.
            The situation was worse for the case of the common people, since Japanese government provided "Imperial Citizen Forming" education, which was to subordinate Korean people as slaves of Japanese empire. For instance, in the course of Imperial Citizen Forming, students learnt how to bow to Shinto Shrine, the mystical god of Japan, instead of Korean history. It was, in abstract, a universal education, but the one limited to elementary school level; there were only a few going up to the high school level and even fewer Koreans in the universities
            In this situation, it wouldn¡¯t be able for Koreans to use Japanese left-over industries, since they weren¡¯t able to figure out how to run the factory. (3) The Japanese effort to merge Korean economy as a part of Japan included a lot of infrastructure, such as schools, railroads, and utilities. After the departure of Japan, the profit was distributed only among Koreans which it seems to be sure that Korean workers would have earned more, but due to the complete lack of managerial force, South Korean Manufacturing in 1948 reached 15% of its level in 1939. (4)
            Not only economically but also politically Korea was showing little ability even to control itself; Yalta Conference, held from February 9th to February 14th in 1945, reaffirmed the Cairo Declaration which consisted of the clause that Korea should be independent and free, and also confirmed that the declaration would be fulfilled "in proper moment" and the overtaking of Korea by certain country is not preferable, which Soviet Union and United States both agreed. However, when the admirals of each country in Allied Forces met, they agreed to divided post-war Korean peninsula of which the North occupied by Soviet Union and the South occupied by United States. The agreement became the fact when in May 1948 the Southern part of Korea held an election solely and elected Syngman Rhee as its first president. The government was set upon the United States support in August 15th, 1948, while the people of Korea didn¡¯t even understand what democracy or president is.
            While Kim Il Sung established Democratic People¡¯s Republic of Korea in 1948 and provided tranquility to the nation with North Korean People's Army (NKPA), South Korea, embracing the value of democracy and capitalism, was slow in dealing with the chaos. Dealing with post-war period which can be described as "complete lack of everything : labor force, funding, technology, education, and so forth," Republic of Korea, relatively, wasn't so bright; Syngman Rhee passed through Washington, Harvard, and Princeton and was master in English skill and politics, but his thought was too American-centric. In other words, he was putting too much weight to the idea of democracy and the power of United States. He was also recruiting internal security force headed by Kim Chang Ryong, but it wasn't provided with weapons as NKPA was and couldn¡¯t exert as much force as NKPA could. The problem was, he used this weak power not to provide stability and to embrace Korean economy but to get rid of communists in Southern part of Korea. He oversaw, or stimulated, some massacres in which leftists and communists were killed, and this could decrease the number of communist but this couldn¡¯t implement the idea of democracy in Korean people.
            While DPRK was becoming stronger every day due to the full support of Soviet Union, ROK wasn't, and it was trying not to recover from the economically desperate situation but was to make itself "fully democratic" one. This led to the break-out of Korean War, which lasted only 3 years but devastated the economic condition of Korea completely.

Notes

1.      Statistics of Japanese Genocide and Mass Murder
2.      Part III of Legacies of Japan war
3.      Jong Hwa Lee
4.      Kim and Roemer, 1979



Bibliography (as of September 19th 2008) . . . go to Teacher's comment

1.      Article Turkey, in : Britannica Book of the Year 1950 pp.682-683, 1951 pp.686-687, 1952 p.690, 1953 pp.699-700, 1954 p.701, 1955 pp.755-756, 1956 pp.692-693, 1957 pp.756-757, 1958 pp.695-696, 1959 pp.693-694, 1960 pp.693-694, 1961 pp.691-693, 1962 pp.686-687, 1963 pp.801-802, 1964 pp.826-827, 1965 pp.829-830, 1966 pp.778-779, 1967 pp.766-767, 1968 pp.773-774, 1969 pp.760-761, 1970 pp.761-762, 1971 pp.743-744, 1972 pp.697-698, 1973 p.698, 1974 pp.692-693, 1975 pp.698-699, 1976 pp.675-676, 1977 pp.679-680, 1978 pp.683-684, 1979 pp.681-682, 1980 pp.680-681
2.      Article South Korea, in : Britannica Book of the Year 1953 pp.400-405, 1954 pp.399-410, 1955 pp.452-453, 1956 pp.389-390, 1957 pp.451-453, 1958 pp.391-392, 1959 pp.387-388, 1960 pp.381-382, 1961 pp.387-389, 1962 pp.383-385, 1963 pp.501-502, 1964 pp.481-482, 1965 pp.468-470, 1966 pp.439-440, 1967 pp.462-464, 1968 pp.462-464, 1969 pp.449-450, 1970 pp.451-453, 1971 pp.431-433, 1972 pp.400-402, 1973 pp.395-396, 1974 pp.398-399, 1975 pp.423-425, 1976 pp.451-452, 1977 pp.443-444, 1978 pp.478-480, 1979 pp.472-474, 1980 pp.474-477
3.      Young, John W, The Longman Companion to Cold War and Detente 1941-1991, London : Longman Publishing, 1993.
4.      B.R. Mitchell, International Historical Statistics - Africa, Asia & Oceania 1750 - 2000 Fourth Edition, Palgrave Macmillan, New York 2003
5.      Douglas A. Howard, The History of Turkey, Greenwood Press, 2001
6.      Metin Heper, Historical Dictionary of Turkey, 2nd edition, Scarecrow Press, 2002
7.      Kim, Chong Lim, The Legislative Connection: The Politics of Representation in Kenya, Korea, and Turkey ,
8.      Issacs, Harold (Editor), Journal of Third World Studies (Volume xviii, No. 1, Spring, 2001) The Third World in the 21st Century : Lessons from the Past, Perspectives on the Future,
9.      Eddy, Sherwood, The Challenge of the East. Asia in Revolution - India, China, Japan, Korea, Philippines, Turkey, Palestine
10.      Jeffrey D. Sachs, Developing Country Debt and Economic Performance, Volume 3 : Country Studies--Indonesia, Korea, Philippines, Turkey (National Bureau of Economic Research Project Report)
11.      Nicholas Gage, Turkey Seeks Long-Term U.S. Aid And Joint Arms - Industry Ventures; Arms Aid $2.5 to $3.5 Billion Special to The New York Times June 10, 1979, Sunday
12.      U.S. and Turkey Sign Pact on Aid and Bases; U.S. and Turkey Sign Agreement on Aid and Bases Special to The New York Times, March 30, 1980, Sunday
13.      Text of Truman's First Report to Congress on Progress of U.S. Aid in Greece and Turkey; Truman's Report on Progress of Aid Special to The New York Times. November 11, 1947, Tuesday
14.      Bal, Idris, Turkish Foreign Policy In Post Cold War Era, Brown Worker Press, Florida, 2004
15.      United States Department of State, Bureau of European and Eurasian Affairs : Turkey, http://www.state.gov/r/pa/ei/bgn/3432.htm, July 2008
16.      Turkish Statistics Institute : Agriculture. http://www.turkstat.gov.tr/AltKategori.do?ust_id=13
17.      Sierra, J.A., Bay of Pigs, Invasion, from : History of Cuba, http://www.historyofcuba.com/history/baypigs/pigs4.htm
18.      Lee, Jong-hwa, Economic Growth and Human Development in the ROK, 1945-1992, http://hdr.undp.org/docs/publications/ocational_papers/oc24aa.htm
19.      Part III : The Problem from a historical Perspective, http://daga.dhs.org/daga/press/urm/fingerprinting/chap03.htm, Daga press
20.      Statistics of Japanese Genocide and Mass Murder, http://www.hawaii.edu/powerkills/SOD.CHAP3.HTM
21.      Fukuoka, Yasunori, Koreans in Japan:Past and Present, http://www.han.org/a/fukuoka96a.html, Saitama University Review, Vol. 31, No.1
22.      Encyber Encyclopedia, The Process of Korean Division, http://100.naver.com/100.nhn?docid=774416
23.      Cairo Declaration - wikipedia, the free encyclopedia, http://en.wikipedia.org/wiki/Cairo_Declaration
24.      Kim Il Sung, Encyber Encyclopedia
25.      Lankov, Andrei, From Stalin to Kim Il Sung: The Formation of North Korea 1945-1960, Rutgers University Press (2002), p. 55
26.      Lee, Wha Rang, Who was Rhee Syngman? http://www.hartford-hwp.com/archives/55a/186.html, Kimsoft, 22 February 2000



Bibliography (as of September 12th 2008) . . . go to Teacher's comment

1.      Article Turkey, in : Britannica Book of the Year 1950 pp.682-683, 1951 pp.686-687, 1952 p.690, 1953 pp.699-700, 1954 p.701, 1955 pp.755-756, 1956 pp.692-693, 1957 pp.756-757, 1958 pp.695-696, 1959 pp.693-694, 1960 pp.693-694, 1961 pp.691-693, 1962 pp.686-687, 1963 pp.801-802, 1964 pp.826-827, 1965 pp.829-830, 1966 pp.778-779, 1967 pp.766-767, 1968 pp.773-774, 1969 pp.760-761, 1970 pp.761-762, 1971 pp.743-744, 1972 pp.697-698, 1973 p.698, 1974 pp.692-693, 1975 pp.698-699, 1976 pp.675-676, 1977 pp.679-680, 1978 pp.683-684, 1979 pp.681-682, 1980 pp.680-681
2.      Article South Korea, in : Britannica Book of the Year 1953 pp.400-405, 1954 pp.399-410, 1955 pp.452-453, 1956 pp.389-390, 1957 pp.451-453, 1958 pp.391-392, 1959 pp.387-388, 1960 pp.381-382, 1961 pp.387-389, 1962 pp.383-385, 1963 pp.501-502, 1964 pp.481-482, 1965 pp.468-470, 1966 pp.439-440, 1967 pp.462-464, 1968 pp.462-464, 1969 pp.449-450, 1970 pp.451-453, 1971 pp.431-433, 1972 pp.400-402, 1973 pp.395-396, 1974 pp.398-399, 1975 pp.423-425, 1976 pp.451-452, 1977 pp.443-444, 1978 pp.478-480, 1979 pp.472-474, 1980 pp.474-477
3.      Young, John W, The Longman Companion to Cold War and Detente 1941-1991, London : Longman Publishing, 1993.
4.      B.R. Mitchell, International Historical Statistics - Africa, Asia & Oceania 1750 - 2000 Fourth Edition, Palgrave Macmillan, New York 2003
5.      Douglas A. Howard, The History of Turkey, Greenwood Press, 2001
6.      Metin Heper, Historical Dictionary of Turkey, 2nd edition, Scarecrow Press, 2002
7.      Kim, Chong Lim, The Legislative Connection: The Politics of Representation in Kenya, Korea, and Turkey ,
8.      Issacs, Harold (Editor), Journal of Third World Studies (Volume xviii, No. 1, Spring, 2001) The Third World in the 21st Century : Lessons from the Past, Perspectives on the Future,
9.      Eddy, Sherwood, The Challenge of the East. Asia in Revolution - India, China, Japan, Korea, Philippines, Turkey, Palestine
10.      Jeffrey D. Sachs, Developing Country Debt and Economic Performance, Volume 3 : Country Studies--Indonesia, Korea, Philippines, Turkey (National Bureau of Economic Research Project Report)
11.      Nicholas Gage, Turkey Seeks Long-Term U.S. Aid And Joint Arms - Industry Ventures; Arms Aid $2.5 to $3.5 Billion Special to The New York Times June 10, 1979, Sunday
12.      U.S. and Turkey Sign Pact on Aid and Bases; U.S. and Turkey Sign Agreement on Aid and Bases Special to The New York Times, March 30, 1980, Sunday
13.      Text of Truman's First Report to Congress on Progress of U.S. Aid in Greece and Turkey; Truman's Report on Progress of Aid Special to The New York Times. November 11, 1947, Tuesday
14.      Bal, Idris, Turkish Foreign Policy In Post Cold War Era, Brown Worker Press, Florida, 2004
15.      United States Department of State, Bureau of European and Eurasian Affairs : Turkey, http://www.state.gov/r/pa/ei/bgn/3432.htm, July 2008
16.      Turkish Statistics Institute : Agriculture. http://www.turkstat.gov.tr/AltKategori.do?ust_id=13
17.      Sierra, J.A., Bay of Pigs, Invasion, from : History of Cuba, http://www.historyofcuba.com/history/baypigs/pigs4.htm



Working Table of Contents, Second Update (as of September 12th 2008) . . . go to Teacher's comment

1.      Introduction
2.      Before World War II
     I.      Korean colonial period under Japan
     II.      Turkey under Mustafa Kemal Atatürk
     III.      Comparison
3. 1950-1953
     I.      Korean War
         A.      Brief Timeline
         B.      Aftermath
         C.      Turkish & United States Aid
     II.      Economical status
4. 1953-1960
     I.      economic poverty of ROK and Rhee's effort to rehabilitate
     II.      Regional Importance of Turkey
     III.      Difference of economic & social status
     IV.      Turning Point : Cuban Missile Crisis of 1961
5. 1962-1980
     I.      Park's Reign and successful revival of economy
     II.      Relatively slower development of Turkey after Cuban Missile Crisis
     III.      Reasons for Difference of Development Speed
6. Conclusion



Bibliography (as of September 9th 2008) . . . go to Teacher's comment

1.      Article Turkey, in : Britannica Book of the Year 1950 pp.682-683, 1951 pp.686-687, 1952 p.690, 1953 pp.699-700, 1954 p.701, 1955 pp.755-756, 1956 pp.692-693, 1957 pp.756-757, 1958 pp.695-696, 1959 pp.693-694, 1960 pp.693-694, 1961 pp.691-693, 1962 pp.686-687, 1963 pp.801-802, 1964 pp.826-827, 1965 pp.829-830, 1966 pp.778-779, 1967 pp.766-767, 1968 pp.773-774, 1969 pp.760-761, 1970 pp.761-762, 1971 pp.743-744, 1972 pp.697-698, 1973 p.698, 1974 pp.692-693, 1975 pp.698-699, 1976 pp.675-676, 1977 pp.679-680, 1978 pp.683-684, 1979 pp.681-682, 1980 pp.680-681
2.      Article South Korea, in : Britannica Book of the Year 1953 pp.400-405, 1954 pp.399-410, 1955 pp.452-453, 1956 pp.389-390, 1957 pp.451-453, 1958 pp.391-392, 1959 pp.387-388, 1960 pp.381-382, 1961 pp.387-389, 1962 pp.383-385, 1963 pp.501-502, 1964 pp.481-482, 1965 pp.468-470, 1966 pp.439-440, 1967 pp.462-464, 1968 pp.462-464, 1969 pp.449-450, 1970 pp.451-453, 1971 pp.431-433, 1972 pp.400-402, 1973 pp.395-396, 1974 pp.398-399, 1975 pp.423-425, 1976 pp.451-452, 1977 pp.443-444, 1978 pp.478-480, 1979 pp.472-474, 1980 pp.474-477
3.      Young, John W, The Longman Companion to Cold War and Detente 1941-1991, London : Longman Publishing, 1993.
4.      B.R. Mitchell, International Historical Statistics - Africa, Asia & Oceania 1750 - 2000 Fourth Edition, Palgrave Macmillan, New York 2003
5.      Douglas A. Howard, The History of Turkey, Greenwood Press, 2001
6.      Metin Heper, Historical Dictionary of Turkey, 2nd edition, Scarecrow Press, 2002
7.      Kim, Chong Lim, The Legislative Connection: The Politics of Representation in Kenya, Korea, and Turkey ,
8.      Issacs, Harold (Editor), Journal of Third World Studies (Volume xviii, No. 1, Spring, 2001) The Third World in the 21st Century : Lessons from the Past, Perspectives on the Future,
9.      Eddy, Sherwood, The Challenge of the East. Asia in Revolution - India, China, Japan, Korea, Philippines, Turkey, Palestine
10.      Jeffrey D. Sachs, Developing Country Debt and Economic Performance, Volume 3 : Country Studies--Indonesia, Korea, Philippines, Turkey (National Bureau of Economic Research Project Report)
11.      Nicholas Gage, Turkey Seeks Long-Term U.S. Aid And Joint Arms - Industry Ventures; Arms Aid $2.5 to $3.5 Billion Special to The New York Times June 10, 1979, Sunday
12.      U.S. and Turkey Sign Pact on Aid and Bases; U.S. and Turkey Sign Agreement on Aid and Bases Special to The New York Times, March 30, 1980, Sunday
13.      Text of Truman's First Report to Congress on Progress of U.S. Aid in Greece and Turkey; Truman's Report on Progress of Aid Special to The New York Times. November 11, 1947, Tuesday
14.      Bal, ?dris, Turkish Foreign Policy In Post Cold War Era, Universal Publishers, 2004
15.      United States Department of State, Bureau of European and Eurasian Affairs : Turkey, http://www.state.gov/r/pa/ei/bgn/3432.htm, July 2008
16.      Turkish Statistics Institute : Agriculture. http://www.turkstat.gov.tr/AltKategori.do?ust_id=13
17.      Bay of Pigs, Invasion, from : History of Cuba, http://www.historyofcuba.com/history/baypigs/pigs4.htm



Working Table of Contents, First Update (as of September 8th 2008) . . . go to Teacher's comment

1.      Introduction
2.      Before World War II
     I.      Korean colonial period under Japan
     II.      Turkey under Mustafa Kemal Atatürk
     III.      Comparison
3. 1950-1953
     I.      Korean War
         A.      Brief Timeline
         B.      Aftermath
         C.      Turkish & United States Aid
     II.      Economical status
4. 1953-1960
     I.      economic poverty of ROK and Rhee's effort to rehabilitate
     II.      Turkish intervention on Cyprus
     III.      Difference of economic & social status
5. Cuban Missile Crisis(1961)
     I.      Bay of Pigs invasion
         A.      The Plan
         B.      Invasion
         C.      Victory & Defeat
     II.      Aftermath
         A.      U.S. Missile removal from Turkey
         B.      Change of United States Policy toward Turkey
         C.      Indirect effects on Republic of Korea
     III.      Comparison
6. 1962-1980
     I.      Park's Reign and successful revival of economy
     II.      Relatively slower development of Turkey after Cuban Missile Crisis
     III.      Comparison (in data)
7. Conclusion



Chapter 2 (as of June 9th 2008) . . . go to Teacher's comment

II. Aftermath of WWII

II.1.Korea
            The Korean peninsula suffered the whole term of WWII as a colony of Japan. Japanese exploitation of Korea almost devastated the Korean economy. After WWII, United States and Soviet Union compromised in Yalta Conference to divide South Korea by 38th parallel; the Southern part was occupied by democratic forces, most notably United States, and the Northern part was occupied by Soviet Union. The division was harsh damage to Southern Korea, since Northern part contained relatively much more amount of natural resource.
            In May 10 1948, Southern part occupied by U.S. held the first presidential election solely. In the general election, the newly elected National Assembly chose Syngman Rhee unanimously. Rhee's administration and the first democratic country in Korean peninsula, the Republic of Korea (ROK) was established in August 15 1948. However, the nation couldn't stand without the support of United States ; due to overwhelming Japanese exploitation, domestic market was minuscule, trade with other nations were almost impossible, and population was so small that industries would barely work. (1)
            Korean Civil War, broke out in June 25 1950, aggravated the situation of Republic of Korea. Every city except Busan was occupied by the force of DRPK, and it resulted in total destruction of basic industry. Syngman Rhee, dictatoral but charismatic president, tried his best to accrue fund in any method; he leaned to the United States, but because there was barely anything to offer to U.S. for significant amount of funding, Rhee ended, in his reign, in ensuring U.S. fortification in Republic of Korea and small amount of U.S. economic aid.
            *** It would be better if later I insert some info. about the concrete amount of U.S. Aid here****
            However, even if Syngman Rhee succeeded in making fine relationship with United States, it is unable to say that, considering the line graph (2), the economy of ROK was significantly improved. Though GDP was rising, CPI remained almost stable, and this indicates that the real life of ROK citizen was not really improved. Orphans were running through the streets where the electricity and water was barely not pumped. The novel of Ahn Junghyo shows this desparate situation in literary sense.
            My father worked as a carpenter at the American base . . . and Mother ran a small shop at a nearby intersection of a three-forked road. Every day I used to go to the garbage dump a little distance off from my house. Often my foot was cut by a used razor blade, on the sharp teeth of a broken saw or a jagged lid of a can, but the cuts were worth it because the whole family could feast on pig soup at dinner if I happened to find a piece of meat among the garbage. . . . Sometimes you would have good fortune and unearth oranges, Hershey chocolate wrapped in sleek brown paper or Brach's jelly candies of five different crops shining like jewels in their cellophane wrappers. One day the American soldiers dumped a heap of chicken legs that had quite a lot of meat still hanging. . . . Mother boiled a delicious soup with those bones and meat and barley, even adding some precious rice. Where had I found all those chicken legs, Father asked me. I told him. That night, he took a rusty tin bucket from the kitchen and asked me to show him the way to the dump. (3)
            Syngman Rhee can be considered failed president in two ways; first, he failed to get sufficient support from United States; though the belief of United States was same with that of Rhee, which is to make ROK self-reliant nation, He made America reluctant to support the needed fund. Treasury Secretary George Humphrey, at least he wanted to defend ROK not in economic but in military form. So, ever before Junghee Park earned sufficient fund from Japan and U.S. through unfair pact, Korean economy had kept on failing to provide sufficient basis for such self-reliant economy.
            Another mistake of Rhee's administration is that the administration was "corrupted;" tungsten export case of 1952 and cotton import case of 1954 were some of the examples of such corruption. When Syngman Rhee tried to have his fourth term by maliciously changing the election result, the 4.19 Revolution was bursted out in order to expel the president Rhee. After sacrifice of demonstraters, Rhee fled to United States, and Jang Myun took the seat of president for the second time.

(1) Sim Chi Kyu, A Comparison of the Economic Development of the Republic of Korea and the Philippines since Independence
(2) B.R. Mitchell, International Historical Statistics - Africa, Asia & Oceania 1750 - 2000 Fourth Edition, Palgrave Macmillan, New York 2003
(3) Ahn Junghyo, White Badge (New York: Soho Press, 1989), p.54, quoted after Cumings 2005 pp.303-304




Bibliography (as of June 9th 2008) . . . go to Teacher's comment

I. Introduction
II. Aftermath of WWII
II.1. Korea
II.2. Turkey
II.3. Comparison
III. 1945~1971
III.1. Korea - Before Park's dictatorship
III.2. Turkey - 'Protectorate' of the U.S.
III.3. Comparison
III.3.1. Economic comparison
III.3.2. Political Comparison
III.4. U.S. Policy
IV. 1971~1980
IV.1. Korea - After Park and Economic Recovery
IV.2. Turkey - After Cuban Missile Crisis and Economic Decline
IV.3. Change of U.S. Policy
IV.3.1. Change in amount of U.S. Aid
IV.3.2. Change in U.S. Military Fortification
V. Relevance of the Relationship with U.S. and Economy
VI. Notes
VII. Bibliography



Bibliography (as of April 4th 2008) . . . go to Teacher's comment

1.      Article Turkey, in : Britannica Book of the Year 1950 pp.682-683, 1951 pp.686-687, 1952 p.690, 1953 pp.699-700, 1954 p.701, 1955 pp.755-756, 1956 pp.692-693, 1957 pp.756-757, 1958 pp.695-696, 1959 pp.693-694, 1960 pp.693-694, 1961 pp.691-693, 1962 pp.686-687, 1963 pp.801-802, 1964 pp.826-827, 1965 pp.829-830, 1966 pp.778-779, 1967 pp.766-767, 1968 pp.773-774, 1969 pp.760-761, 1970 pp.761-762, 1971 pp.743-744, 1972 pp.697-698, 1973 p.698, 1974 pp.692-693, 1975 pp.698-699, 1976 pp.675-676, 1977 pp.679-680, 1978 pp.683-684, 1979 pp.681-682, 1980 pp.680-681
2.      Article South Korea, in : Britannica Book of the Year 1953 pp.400-405, 1954 pp.399-410, 1955 pp.452-453, 1956 pp.389-390, 1957 pp.451-453, 1958 pp.391-392, 1959 pp.387-388, 1960 pp.381-382, 1961 pp.387-389, 1962 pp.383-385, 1963 pp.501-502, 1964 pp.481-482, 1965 pp.468-470, 1966 pp.439-440, 1967 pp.462-464, 1968 pp.462-464, 1969 pp.449-450, 1970 pp.451-453, 1971 pp.431-433, 1972 pp.400-402, 1973 pp.395-396, 1974 pp.398-399, 1975 pp.423-425, 1976 pp.451-452, 1977 pp.443-444, 1978 pp.478-480, 1979 pp.472-474, 1980 pp.474-477
3.      Young, John W, The Longman Companion to Cold War and Detente 1941-1991, London : Longman Publishing, 1993.
4.      B.R. Mitchell, International Historical Statistics - Africa, Asia & Oceania 1750 - 2000 Fourth Edition, Palgrave Macmillan, New York 2003
5.      Douglas A. Howard, The History of Turkey, Greenwood Press, 2001
6.      Metin Heper, Historical Dictionary of Turkey, 2nd edition, Scarecrow Press, 2002
7.      Kim, Chong Lim, The Legislative Connection: The Politics of Representation in Kenya, Korea, and Turkey ,
8.      Issacs, Harold (Editor), Journal of Third World Studies (Volume xviii, No. 1, Spring, 2001) The Third World in the 21st Century : Lessons from the Past, Perspectives on the Future,
9.      Eddy, Sherwood, The Challenge of the East. Asia in Revolution - India, China, Japan, Korea, Philippines, Turkey, Palestine
10.      Jeffrey D. Sachs, Developing Country Debt and Economic Performance, Volume 3 : Country Studies--Indonesia, Korea, Philippines, Turkey (National Bureau of Economic Research Project Report)
11.      Nicholas Gage, Turkey Seeks Long-Term U.S. Aid And Joint Arms - Industry Ventures; Arms Aid $2.5 to $3.5 Billion Special to The New York Times June 10, 1979, Sunday
12.      U.S. and Turkey Sign Pact on Aid and Bases; U.S. and Turkey Sign Agreement on Aid and Bases Special to The New York Times, March 30, 1980, Sunday
13.      Text of Truman's First Report to Congress on Progress of U.S. Aid in Greece and Turkey; Truman's Report on Progress of Aid Special to The New York Times. November 11, 1947, Tuesday