South koreas economic success

Overview[ edit ] Following the Korean WarSouth Korea remained one of the poorest countries in the world for over a decade. Inmanufacturing industries accounted for approximately 30 percent of the gross domestic product GDP and 25 percent of the work force. Benefiting from strong domestic encouragement and foreign aid, Seoul's industrialists introduced modern technologies into outmoded or newly built facilities at a rapid pace, increased the production of commodities—especially those for sale in foreign markets—and plowed the proceeds back into further industrial expansion. As a result, industry altered the country's landscape, drawing millions of laborers to urban manufacturing centers.

South koreas economic success

The new model details four factors, agility, benchmarking, convergence, and dedication, or namely, the ABCDs. Over the span of 50 years, however, Korea rapidly upgraded its industrial structure, transforming itself from a poor agricultural nation into a global leader in multiple advanced industries, including electronics, automobiles, steel, machinery, and petrochemicals.

Today, Korea is one of the G20 countries leading the global economy. Along with economic development, Korea has been one of the few Asian countries to achieve democratisation and expand its cultural influence e.

In analysing competitiveness, Western theories, in particular, place an emphasis on factors such as advanced technologies as the source of growth for developed countries and cheap labour for developing countries.

For example, they attribute the leading position of the United States to its advanced technologies and the initial economic success of Korea to its cheap labour. However, what existing theories cannot explain is why certain countries experience greater or faster growth compared to their counterparts that have similar factor conditions.

The ABCD model that is introduced in this article provides a clear analytical framework that answers this fundamental question.

South koreas economic success

Adopting the proven best practices i. Western economics also emphasises the importance of innovation, based on raw intelligence and brainpower, to gain competitiveness among similar advanced countries.

Through the analysis of the Korean case, this article reveals that economic success is not attributed to a mysterious, genetically engineered recipe of innovation or a naturally inherited resource. It can serve as a playbook to successful growth for developing countries and as a strategic framework for developed countries that are losing competitiveness.

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Please login or register to continue reading Registration is simple and it is free! You might also like:South Korea’s fertility rate is expected to fall to an all-time low this year, setting the country up for a host of problems including underfunded pensions, expanding debt and economic decline. What are the reason behind South Korea's economic growth?

Update Cancel. ad by it brought a period of growth and modernization in preparation for long-term economic success and policy reform.[14]” How can a developing African country model South Korea's economic growth between the s and ?

South koreas economic success

First, we will examine a success story of the rapidly developing country of South Korea throughout the past several decades and how it was able to successfully utilize its export-centered economy in a global setting. Overview. Following the Korean War, South Korea remained one of the poorest countries in the world for over a its gross domestic product per capita was $79, lower than that of some sub-Saharan countries.

The growth of the industrial sector was the .

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