South Korea Economic Development Until 1997

I) Overview of Koreas Economic Development Process until 1997

To achieve its undreamt growth, South Korea has undergone 3 major phases of development:

1) Post-war import interchange phase (1953-1961)
After the Korean War ended in 1953, South Korea with 20 millions inhabitants was a poorly endowed and agricultural (agriculture, forestry, fishing) country. Dependant on Inter subject area (US) aid and with a restrain budget the country would impose high tariffs to protect its national industry. The industrialization process was centered on import-substitution industries.

2) Development found on export growth (1961-1970)
After a soldiers coup in 1961, the new organisation decided that modernization should be the primary goal for South Korea. This development scheme aimed at boosting savings in localize to entail high growth, through policies that call downd rises in foreign capital letter inflow, government savings, and by giving priority to exports-led industrialization.
Those policies were mostly:
-Government policies and subsidies that would compensate losses on profit margins for export of labor intensive commodities as in that location was keen competition in these sectors.




-Relaxed import substitution policies so enterprises decisions would be motivated by profit and they therefore there would be a gain of attention for exports.
- Education intentional for productive activities.

As a result we noticed capital accumulation, that was further used for development of the agricultural sector and to promote the Heavy and Chemical Industry in order to rush along the industrialization process.

3) Heavy and Chemical Industry (HCI) development(1970-1980_
In the 1970s, a new set of development strategies was set up. Indeed, the country was liner imbalances in growth and weaknesses in international competitiveness because the measures of enforced in the 1960s were based on heavy government protection and support.
Therefore the new policies were designed as to chequer a shift...If you want to get a full essay, order it on our website: Orderessay



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