The Case of South Korea
In 1961, Park (1999) states that the foregoing policies were replaced by American initiatives stressing South Korean economic development, social reforms, and long-range U.S. public assistance. During the administration of President John F. Kennedy, and in conjunction with the 1961 establishment of a military junta in South Korea, the opportunity to restructure American policy emerged. This change was further stimulated by political, economic and personnel changes in South Korea in the late 1950s. The key change was the substitution of economic development aid for direct grants, a process that began in the late 1950s under Dwight D. Eisenhower and which continued under Presidents Kennedy and Lyndon B. Johnson (Park, 1999).

Early in the post-Korean War period, the Eisenhower Administration emphasized domestic stability by encouraging a stable economy and reducing inflation. In accord with the prevailing economic thinking behind foreign aid in the 1950s, the U.S. opposed South Korean currency expansion, which was considered the be the cornerstone of stability. After the inauguration of the Republic of Korea (ROK) in 1948, the U.S. worried about a possible challenge to the regime of Sigmund Rhee from external forces as well as domestic economic instability (Park, 1999). With the establishment under Kennedy of U

 

Throughout the period from the end of the Korean War to the present, Fowler (1999) contends that American policies have been heavily influenced by events occurring in South Korea itself. For example, during 1979 and 1980, that country experienced a failed transition to democracy after the assassination of authoritarian leader Park Chung Hee in 1979. Martial law was declared in 1980 after demonstrators were killed and it was not until 1987 that the countryÆs leader Chun Doo Hwan agreed to step down and allow democratic elections.

Awanohara, S., & Hoon, S.J. (1993). Win, hold, confuse:

As Eberstadt (2002) pointed out, despite South KoreaÆs economic difficulties in the 1990s, the country is again on track to continue its progress toward economic development and stabilization. The collapse of the Soviet Union in the 1990s made it possible for the United States to again focus its attention on creating positive and proactive trade relationships with countries such as South Korea and to assist such countries in maintaining their national sovereignty.

A critical element in American policy toward the ROK has been the assumption on the part of the U.S. of much of the countryÆs defense burden (Lee & Heo, 2001). In the beginning of the alliance period between the two nations, South Korea maintained a relatively low defense budget. In the 1960s, this amounted to no more than 4 percent of ROK gross national product (GNP). U.S. military aid to the country, including both direct and indirect assistance, was more than the South Korean defense budget in the 1960s. Later, in the 1970s, American policy shifts caused the ROK to substantially increase its spending on defense. In 1969, the ROK agreed with President Jimmy Carter to raise its defense burden to 6 percent of GNP in return for cancellation of CarterÆs plan to withdraw all U.S. troops from the country. Since the late 1980s, however, South Korea has decreased its defense spending in parallel to the United

 
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    Some topics in this essay  
 
    South Korea | Korean War | North Korea | South Korean | Korea United | North KoreaÆs | south korea | East Asia | Eisenhower Administration | South Koreans | Jimmy Carter | american policy | north korea | korean war | olsen 2000 | park 1999 | policy south korea | south korean | foreign policy | policy south | fowler 1999 | donÆt worry 1990 | lee heo 2001 | american foreign policy | defense budget 1960s |  
   
 
 
 
   
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