Korea
What distinguishing factors help explain the rapid economic growth experienced by the South Korean economy over the past four decades?
As the South Korean economy has reached a more mature stage of its economic growth, what are the evolving challenges it has had to face?
What are its prospects of continued economic success in the increasingly globalised world economy?
The rapid growth and development in the newly industrialising economies (NIE’s) in recent decades has been nothing short of spectacular. Now among the world’s most dynamic industrialised economies, the NIE’s of Singapore, Taiwan Hong Kong, and South Korea which will be the focus, stand as perhaps the best examples of successful economic development. The economic development of South Korea, which has been among the most rapid in the world is typical of the ‘miracle’ that is the NIEs.
Korea has come far since the days it was ‘a nation of hungry rice farmers’, by pursuing an industrialisation-led development commitment since 1961, which has since produced annual GDP growth of 8.4% per annum, second only to China. The success of South Korea, has been identified by a number of factors including the shift away from import substitution strategies towards export orientated industrialisation, and the effective managing of the economy and authoritarian rule adopted by the government in order to accelerate the pace of capital accumulation, technical progress and structural change to produce economic growth beyond what could possibly occur in a free market economy.
NIEs, South Korea, are now recognised as ‘export machines’ boasting some of the highest trade/GDP ratios in the world. International economic relations began in 1964 with the recognition of these limitation of the domestic market and the ineffectiveness of pursuing substitution industrialisation strategies. As part of its new strategy for export expansion the South Korean government introduced new measures which included the devaluation of the won, which improved the competitiveness of its exports and introduced incentives designed to channel resources into export-orientated industries. Exporters were also supported by direct cash payments, permission to retain foreign exchange earnings for the purchase of imports, and the exemption from virtually all import controls and tariffs. The government in consultation with firms, set up ex...
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... favourable, but the high rate of success from the growth performance in the 1980’s will be difficult to replicate. The next phase of the Asian miracle that will involve China emerging as the world’s largest economy within 10 years and the re-emerging Japanese economy will provide substantial benefits for the Korean economy. Some important strengths of the economy include: a well educated and motivated workforce, a growing level of R&D, continued rates of high savings, greater regional trade links and potential for domestic growth through increased infrastructure investment, housing and personal consumption.
In summation, South Korea is an economy which initially through selective government intervention and now through domestic and international reforms, sped to economic might. Although there are many challenges in the longer term making South Korea’s future uncertain, (including the reunification with the ailing, unstable North) the fact South Korea has come so far argues well for the future. If South Korea can make the necessary changes to its economy to become a sustained industrialised nation then it will certainly take its place as an economic leader in the near future.
The Republic of Korea emerged from Japanese colonialism as a Third World Country. Per capita income was under one hundred dollars, the little infrastructure the Japanese built was located in the North, and income inequality was staggeringly high. The future of the Republic of Korea (hereafter simply “Korea”) looked very bleak, even with United States foreign aid. Yet several decades later Korea had become one of the world’s largest, most modern economies run by a democratic government. The “Miracle on the Han,” the term for Korea’s stunning economic growth in such a short period of time, coincided with the lifting of millions of Koreans out of poverty and the
All over the country people are gearing up for the upcoming election for the next
Abraham Lincoln is arguably one of the greatest presidents in the history of the United States. He only served 5 years, but was president in the worst period of American history. He did the unthinkable to many people because of the severity of the decision; he emancipated slaves in the United States. This caused him to be dubbed ‘The Great Emancipator’. The nickname he received is an accurate one because it is a major decision that shaped the future of America. This decision was long overdue and he made sure that the prosperity would not have to deal with the issue of slavery separating the government. Additionally, he was able to change the landscape of the war because the North had affected the South’s way of life. He was very bold for declaring that all slaves will be free, but it was for the improvement of America.
Soh, C. S. (2001). South Korea. In C. R. Ember & M. Ember (Eds.), Countries and Their Cultures (
INTRODUCTION : a brief overview of the current situation regarding the security issue in the Pacific region
South Korea has a strong $1-trillion economy; it is the third largest market in Asia, behind Japan and China. It also has the 13th largest economy in the world. It is expected that the economy’s current upward trajectory will continue for some time to come. This makes South Korea an attractive market for foreign investment, especially as the world economy, as a whole, continues to improve.
North Korea is seen as a closed economy. North Korea has one of the largest military forces in the world and most of its budget is allocated to military. The government has the aim to being a “strong and prosperous” nation. The major concern of the government is retaining control. The GDP growth rate was -0.5% in 2010. It increased to 0.8% in 2011 and in 2012 it further rose to
This book is pieced together in two different efforts, one which is to understand the latter history of the post-1945 era with its political liberalization and rapid industrialization period, while at the same time centering its entire text on the question of Korean nationalism and the struggle against the countless foreign invasions Korea had to face. The purpose of this book was composed to provide detailed treatment of how modern Korea has developed with the converged efforts of top eastern and western scholars who wanted to construct a fair overview of Korea's complicated history. Also, the writers wanted to create an updated version of Korea's history by covering the contemporary arena up to the 1990's. The ...
There are multiple factors within North Korean politics that play into North Korea's transition into the society that it is today and the reasons that people defect and become refugees. In the 1970s North Korea saw their largest economic boom in the form of intense industrial growth. This growth, however, was so large that the North was unable to sustain production (Cha 111). The boom began in the late 1950s when Kim Il-Sung focused too much on heavy industrial
What is Macroeconomics? Macroeconomics is the study of the behavior and performance of a nation’s economic system as a whole. The Country that I will be focusing on is South Korea. In this essay, I’ll be discussing South Korea Macroeconomics system and how this country handles its economy compared to the United States. South Korea also known as the Republic of Korea is surrounded by two highly developed countries at the west there’s China and at the east Japan. the total land area of South Korea is about 100,000 square km. The Korean peninsula is about 600 miles long and 120 miles’ width the total population of south Korea is about 51 million. Seoul (the capital) is the and largest city of the country. Till this day South Korea is a Presidential Republic and is considered and one of the most developed countries with a very high standard of living (GDP). Every country has it’s on currency like America is USD Europe Euros, Japan Yen and South Korea Won.
The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues. I feel that economic growth is the main indicator of economic success. Additionally, innovations in technology, improving human capital, and improving foreign direct investment (FDI) are three issues that can lead to economic growth.
Development is a dynamic process that needs fundamental transformation in different spheres of the country’s economy. It ranges from the traditional economy based on subsistence food production; development in any economy requires a dramatic mobilization of energy resources, an upgrading of rural agriculture and increased investment in the transport industry, education and human capital (Tremewan, 1994). The greatest problem in any economy is how to get started, making the required changes from the low levels of subsistence, and low savings to an economy that is generating surplus that can be invested and be devoted into the building of human capital and infrastructure. This has been witnessed in Singapore, as it has been able to come up with the best strategies to use its resources to develop and generate surplus capital to invest in its development strategies. This development has been encouraged by its geographical and institutional characteristics, which have made great contributions to the economy.
This country is of particular interest as it is one of the four Asian Tiger economies, whose rapid industrialisation and growth between the early 1960’s and 1990’s caused it to emerge as one of the most dynamic and fast-changing countries in Asia and the world. Much like Japan, its economic development was marked by heavy investments in foreign technology and imitation through reverse-engineering. By limiting FDI, South Korea maintained control over its industrial base and encouraged investments in R&D.
Over the past several decades, South Korea’s economy has achieved a high level of growth. Along with Hong Kong, Singapore, and Taiwan, South Korea is a member of the Four Asian Tigers, and it is the only developed country that included in the Next Eleven group (“Economic Statistics” 2014). However, foreign goods and services that attempt to enter the Korean market to compete with the domestic competition still face several entry barriers that come from Korea’s excessive government oversight. The government’s high tariffs and other means of restriction lead to increased costs.
All of these factors make South Korea an attractive country for foreign investors to invest in.