Rejecting the universality of neoliberalism: A study of capitalism in India and South Korea

Abstract

Neoliberalism has long been put forward by leading Western capitalist actors as a universally applicable model for economic development. This paper rejects this supposed ‘universality’ by studying the economic development and rise of capitalism in India and South Korea. India’s production, economy, and political institutions were decimated under British occupation. Since independence, India has struggled to build up its economy while establishing a stable government. Forced to turn to neoliberalism to secure loans and keep up with established economies, the cycle of poverty established in colonial times has only been reinforced. In contrast, South Korea has been able to establish a flourishing economy through following its own form of state-guided capitalism. In a similar economic position to India after suffering Japanese occupation and the Korean War, South Korea rejected neoliberal policy and built up their industries within the national economy before joining the global market. Thus, while neoliberal policy may be suited to the Western nations it was designed in and for, it is not necessarily suitable for the culture and economic realities of other nations. Ultimately, the failings of neoliberalism in India and the success of South Korea’s tailored capitalist system serve as evidence to reject the ‘universality’ of neoliberalism and encourage the establishment of localised socio-economic practice.