156BOOK REVIEWS 1901. However, these minor errors do not detract from the usefulness of this book, and we historians should be grateful to Hyung-chan Kim for "discovering " these letters and making them available to public. It is hoped that the publication of this book will stimulate further study of the remarkable Yun Ch'i-ho. Yöng-ho Ch'oe University of Hawaii Government, Business, and Entrepreneurship in Economic Development : The Korean Case. Leroy P. Jones and Il Sakong. Cambridge, Massachusetts: Harvard University Press, 1980. xxxv, 434 pp. In recent years the Harvard Institute for International Development and the Korea Development Institute have jointly undertaken a series of studies on the economic and social modernization of Korea. This book by Leroy P. Jones and Il Sakong is the fruit of one of these studies and is a welcome addition to the growing literature on this interesting subject. As is expected of the publications in this series , this book is not overburdened with abstruse analytical discussions and is thus readily accessible to a wide audience of well-informed laymen, as well as specialists in economic development. The basic objective is to investigate the role of the government in the rapid economic growth of Korea during most of the Park Chung Hee regime (19611979 ). The approach that the authors use in their investigation is to identify the factors that made it possible to channel the latent energy of the Korean people into socially productive outlets. According to the authors, political leadership committed to economic growth and the judicious use of certain government measures are the factors in question. The book, which contains a mandatory discussion of the historical background , consists of two main analytical parts: one on the process of government decision-making and the implementation of its decisions, and the other on the expansion of entrepreneurship and the sources of its expansion. The authors discuss how political leadership committed to economic growth has brought about an improvement in X-efficiency on the part of government officials and private entrepreneurs . When political leaders have clear policy objectives and can use both incentive and threat systems for the purpose of achieving their objectives, it is probably not too surprising to observe improvements in the X-efficiency of organizations , public or private. What seems to matter more, therefore, is whether this improvement at the level of individual decision-making units can foster the achievement of macroeconomic objectives through the implementation of government policy measures. Certainly, bureaucrats and private entrepreneurs can become more efficient in their pursuit of zero-sum, rent-seeking activities! Thus in the book under review, the success of the Korean economy is attributed in part to government measures that have channelled entrepreneurial resources away BOOK REVIEWS157 from zero-sum, rent-seeking activities and into positive-sum, wealth-creating activities . The authors present a good discussion of measures of this sort undertaken by the Park regime. For example, they point out that under Rhee, foreign exchange was allocated to importers via quotas and licenses ("discretionary command"), whereas under Park it was allocated via an official exchange rate and tariffs ("nondiscretionary field manipulation"). This change in the allocative mechanism had the effect, according to the authors, of driving entrepreneurs from zerosum , rent-seeking activities to positive-sum, wealth-creating activities that resulted in export expansion. I feel, however, that a more thorough analysis of various government measures would have been in order. Having observed Korea's rapid economic growth and the government measures that actively encouraged this growth, one may too readily infer that the government's policy measures must have been of the kind that lends to the expansion of positive-sum, wealth-creating activities. Personally, I am inclined to accept this argument, but would have found it more convincing if a more thorough analysis of government measures had been carried out. These measures need to be shown logically, apart from corroborating facts, to be of the kind that leads to positive-sum, wealth-creating activities instead of zero-sum, rent-seeking activities . Even if leadership commitment to economic growth and the implementation of measures that encourage positive-sum, wealth-creating activities did, in fact, bring about Korea's rapid economic...
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Chapters from the book has been translated into many languages. Where only one or two chapters have been translated, they can be obtained from the relevant page for the activity. The following languages have substantial translations of a version of the book. (Note that the book has changed since it was first released in the 1990s, and not all translations correspond to the same version.)
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