New Post (47) : Can we learn from---Hyundai, Samsung and LG.
1. The most significant factor in South Korea's rapid industrialization was the adoption of an outward-looking strategy in 1964. This strategy was particularly well-suited to the time because of South Korea's poor natural resource endowment, low savings rate and tiny domestic market. The strategy originally promoted growth through labor-intensive, manufactured exports in which South Korea could develop a competitive advantage. Government initiatives played a key role in this process. The inflow of foreign capital was encouraged to supplement the shortage of domestic savings. These efforts enabled South Korea to achieve rapid growth in exports and subsequent increases in income.
2. One “other” reason behind the strength and speed of economic development in South Korea is that South Korea's strong and rapid industrialization came during times of authoritarian rule. The country was ruled by military-led governments between 1961 and the mid-1980s with full democracy coming only in 1987. Particularly in the 1960s, a stick-and-carrot approach symbolized by the "no free lunch" motto – which forced discipline and pushed the population toward competition and linked government support with the performance of groups and companies – became the basis of development.
Maybe. It just maybe that ***Such policies might have been harder to implement had governments faced free elections at those times. But the payoff is undeniably there for the world to see. (...is there a moral to this ? I believe YES)
3. To my mind---The awesome success story of China is “similar”.
(i.e.…as similar as similar can be).
“China turned the burden of population into it's most potent weapon”.
Salutations to…(both)…
South Korea & China---TWO great ASIAN nations that took it upon themselves to lift themselves up by their shoe strings. Inspiring ? Indeed !
PS: I do suspect the people of these 2 countries are driven by "patriotism". No charades. That probably accounts for the "big difference". (Vs other "aspirant" nations)
Charlie Brown
