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COLUMNISTS
TODAY'S STORIES
11.06.2008
South Korea Goes Crazy Over Beef

Dani Rodrik and Tyler Cowen are having an interesting back-and-forth over Cowen's New York Times column this past weekend, in which he argued that anxiety about globalization is mostly an irrational frenzy of xenophobia. No doubt Rodrik's right that protectionism is an entirely rational response from workers whose jobs are at risk of being shipped abroad, but in general I'm more persuaded by Cowen that most of the anti-globalization sentiment out there is driven by visceral feelings toward foreigners. (Cowen offers the timely example of international soccer tournaments--I presume Michael Ballack would agree.)

For more evidence, one need look no further than events this week in South Korea, where upwards of 80,000 people turned out in the streets of Seoul to protest President Lee Myung-bak's decision to resume imports of American beef. The backlash against the move brought the government to its knees, threatens seriously to damage Korean–American relations, and prompted the entire cabinet to offer to resign. Having visited South Korea briefly last summer, I'm not surprised: Beef is, for whatever reason, a major symbol of national pride--upon introducing myself as an American, on several occasions I was promptly asked my opinion of Korean beef. (It's really good, but still.) Beyond that, the entire country is gripped by a fervent, almost eerie strain of economic nationalism. You can walk around Seoul for hours without seeing a non-Korean car. And this from a country that has benefited beyond belief from globalization! With all due respect to Rodrik, it's pretty difficult to explain this sort of reaction as a rational response to economic forces.

--Josh Patashnik 

Posted: Wednesday, June 11, 2008 11:31 AM with 12 comment(s)

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liberal reformer said:

You are absolutely correct, this is out-and-out nationalism, Josh.  Countries that hugely benefit from globalization such as South Korea has, need to open up themselves up to imports to a greater degree. If it works one way, it needs to work the other way, as well. Japan is another country that has been an export machine for a long time; its people suffer from stratospheric food prices because of the protectionist measures that benefit Japanese farmers, who are the backbone of the Liberal Democratic Party, which has ruled Japan for almost the entire postwar period.

June 11, 2008 11:55 AM

rozenson said:

They're apparently worried about Mad Cow disease, or so says the Times. Really? I haven't noticed an epidemic of tainted beef originating in this here US of A. Beef seems something very strange to get 80,000-100,000 people marching in Seoul against a brand-new government. It obviously means a lot to them.

June 11, 2008 11:59 AM

ratnerstar said:

A few points, related or otherwise:

1) Younger Koreans, especially college students, like to protest.  This is not a joke: student protests have an honored place in modern Korean history and they are now considered an essential part of the college experience.  Korean students protest the way American students go to football games.  So a certain level of demonstration is pretty much always around as "background noise."  In this sort of environment, a relatively minor spark can set off a vastly disproportionate response.

2) When I lived in Korea (2004-2005), it wasn't hard to find foreign cars.  But your point is good: Koreans are very (sometimes irrationally) proud of their national industries, the largest of which wield an amazing amount of power.  People in the US have recently become familiar with LG from cellphones and fridges; in Korea, LG makes everything.  There's an LG amusement park.  You can buy LG cheese.  Seriously.  Anyway, the point is that Koreans are very much in favor of exports, but are not too interested in foreign goods coming in.  I suspect this sort of sentiment is encouraged by the huge Korean conglomerates (chaebol).

3) Quite frankly, a lot of Koreans think foreigners are, well, inferior.  Especially darker-skinned ones.  Koreans probably aren't any more xenophobic than anyone else, but the culture does little to discourage it.  It's really quite open.

P.S.  Did you know LG stands for "Lotte Group" and that "Lotte" refers to the character Charlotte from "The Sorrows of Young Werther?"  Really!

June 11, 2008 12:13 PM

lymon1 said:

We gave them two lead characters on Lost -- what else do they want?

June 11, 2008 12:50 PM

jhildner said:

Lymon:  I know, and they won't shut up about their precious Hyundai besides.

June 11, 2008 1:39 PM

ligedog1 said:

Sounds like they've got their priorities right.  What good reason do they have to allow our poorly regulated beef into their country.  

June 11, 2008 1:54 PM

singlespeed said:

Whether or not you think globalization is good or bad, I think what most people can agree upon is trying to provide an equalizing trade framework for international trade. But what complicates that is that trade treaties between countries is based on several factors beyond pure economics.  People on the right tend to argue that pure market globalization raises standards in the poorer countries but that standard of living numbers used are skewed towards the actual individuals/investors/corporations/governments that are making money off of the trade agreements. The flip side is the itinerant farmer who raises a small but diverse selection of crops may not ever see part of that improved quality of life if his rice crop is competing against cheaper American subsidized import rice. One can argue that the farmer is forced to do something more productive but the question remains as to why he/she should be forced to give up his farm solely to the market benefit of a select few?

I think what we're going to start seeing is a further nationalization of product identity (i.e. individuals will align themselves with domestic products as national pride) while at the same time a re-alignment of trade equity will occur as one-sided trade agreements will flatten out as the third and second world nations develop greater economic clout to negotiate fairer trade contracts than the apparent or perceived one-sided trade agreements with first world nations. So Koreans will protest over foreign beef as an affront to the national pride in Korean beef but they won't protest the foreign car market. Much as Americans protested at one point over foreign car market infiltration while at the same time buying Japanese consumer electronics.

The localization of domestic manufacturing for specific markets will grow not just because of the backlash to globalization by multi-nationals but because of a desire to support domestic products out of national pride, economics, quality and for others because its more sustainable. The market might be smaller but more dedicated to supporting the niche of specific domestic manufacturing for local markets. Quality over quantity.

June 11, 2008 2:32 PM

GSpinks said:

"So Koreans will protest over foreign beef as an affront to the national pride in Korean beef but they won't protest the foreign car market. Much as Americans protested at one point over foreign car market infiltration while at the same time buying Japanese consumer electronics."

This is where consumerism and quality comes into play, because Koreans have arguably the best beef cattle in the world, but American cars were all but garbage during the '80s and most of the '90s and in fact I think the quality is still lagging. If the big 3 had not screwed up so badly, America could be sitting pretty on automobile exports.

June 11, 2008 3:12 PM

colablease said:

"No doubt Rodrik's right that protectionism is an entirely rational response from workers whose jobs are at risk of being shipped abroad . . . ."

Having read Rodrik's post before I saw yours, I was startled at this characterization, and a reread confirms it.  Do you think you could get around to addressing Rodrik's *actual argument*?

June 11, 2008 3:25 PM

singlespeed said:

GSpinks...Don't let my Argentinian friends hear your claim that Korean beef is the best beef in the world. It all comes down to how it's prepared! I've had Korean beef dishes and let me say that my Argentinian friend's carne asado was hands down amazing.

You're right on the quality part of the equation of trade equation. American car manufacturers will give you every bell and whistle to over compensate for the lack of reliability of their cars. Anyone remember the AMC Pacer or that great car the Pontiac Phoenix?

It appears though that many American companies now excel in product design and rapid prototyping while final product manufacturing is done all over the place or domestically w/ foreign sourced parts.

June 11, 2008 3:54 PM

GSpinks said:

mmmm, carne asada...

June 11, 2008 4:23 PM

dabeffert said:

Ditto colablease's point.

I also read Rodrik's post before this and thought it was an interesting political economic argument about the embeddeness of domestic trade vs. international trade.

June 11, 2008 9:22 PM