민주주의와 시장주의

Abstract

If there was a prevailing trend in the affairs of nations in the past twentieth century

it was the increasing role of governments in the allocation of society's resources.

Especially in Korea spotlighted as a paragon of developmental state among

developing countries, the government was deemed to play a decisive role in its

economic development. As the government-driven economy reveals its limit at the

turn of the century, however, the government is no longer regarded as the institution

to achieve social welfare maximization even though there is little doubt that the

government is a central institution in the allocation of social resources. With a

worldwide sweeping trend of neo-liberalism and globalization, a tough criticism

currently arises against governmental intrusion into market economy. The criticism

against governments is basically based on disbelief in democracy as a mechanism to

efficiently allocate society's resources. Nowadays, a new motto Don't let the market

be left to politics! is on the verge of becoming a cliché. This article is particularly

planned to suggest counter-arguments against this market-politics dichotomy for

fear that it should militate in favor of unconditional expansion of market principle.

Under the circumstances it seems imperative that we correctly understand pros and

cons of democracy vis-à-vis market economy.

Part I tries to define democracy and market economy by enumerating differences

and similarities between market and collective action. While competitive behavior is

present in both the market and public sectors, private-sector action is based on

voluntary choice; public-sector action is based on majority rule. While democracy

turns on the rule of one man, one vote, the market on the rule of one dollar, one...