system
Given the following post, respond as if you're commenting on Reddit:
human
Is the South Korean economic miracle an example of successful corporatism? If so, why did South Korean corporatism succeed while Italian Corporatism didn't?

From the looks of it, it seems like blatant corporatism, Park-Chung Hee wants to industrialize his country, he establishes direct ties with businesses like Samsung, Hyundai and LG that soon morphs into Chaebols, he helps them in any way he can, he offers them low interest rates, offers subsidies, etc. If that's the case, why did Italian Corporatism under Mussolini fail?
gpt
If you look at the developmental economics literature they attribute a lot of the differences in success to institutions and other government policies. Italy had a rampant history of corruption and nepotism, Germany and Japan did not. Later Korea protected its domestic industries but internally had quite stiff competition with the most successful firms gaining support for their production with the end goal of exporting goods. Japan had a somewhat similar system (the chaebol is based on the zeibatsu). And Japan’s economic development was modeled on Germany where the state provided the needed capital to firms, as their internal capital markets weren’t as developed as Britain’s.