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Korean Economic Development in Historic Perspective
2009. 7. 1
Joon-Kyung Kim
KDI School of Public Policy and Management
ContentsContents
1. Overall View of Korea’s Economic Transformation
2. Contributing Factors behind “Shared Growth” during the Take-off Period
3. Lessons from the Korean Experience
1. Overall View of Korea’s Economic Transformation
Achieving “shared growth” and democracy 11
Korea has been able to achieve rapid growth with equity since early 1960s. Korea has been able to achieve rapid growth with equity since early 1960s.
• Free from poverty and foreign aid, and becoming self- sufficient economy
• Rapid transformation from light manufacturing to HCIs (Heavy and Chemical Industries)
• Joining the OECD confirms Korea’s economic advance
• Economic development open the way to political democratization, all within one generation
• Free from poverty and foreign aid, and becoming self- sufficient economy
• Rapid transformation from light manufacturing to HCIs (Heavy and Chemical Industries)
• Joining the OECD confirms Korea’s economic advance
• Economic development open the way to political democratization, all within one generation
Korea’s performance of the growth with equity contradicts Kuznet’s hypothesis. Korea’s performance of the growth with equity contradicts Kuznet’s hypothesis.
• Kuznet’s hypothesis: Distribution of income would worsen during the early stage of industrialization.
• Kuznet’s hypothesis: Distribution of income would worsen during the early stage of industrialization.
Liberationfrom JapaneseColonial Rule
Six 5-Year-Economic- Development Plans
FinancialCrisis
200419801961 1970 1995
5,000
10,000
67 89
11,432
7,355
1953
Per Capita Income (US$)
1990
1945
14,193
OECDMember
100(1964)1,000(1977)
1998 2006
18,372
Source : Bank of Korea
66
16,291
Per Capita Income (US$)22
20,240
2007
63.0%7.9%
28.3%
1963
Agriculture / Fisheries
Manufacturing
Source : National Statistical Office
Changes in Employment Structure33
2007
75.0%
17.6%
7.4%
Agriculture / Fisheries
ManufacturingService
Service
Rapid Growth and Low Income Inequality44
Korea has been cited as one of successful countries with relatively low income inequality and rapid growth. Korea has been cited as one of successful countries with relatively low income inequality and rapid growth.
<Gini coefficient and GDP per capita growth rate: 1965-1990>
Mexico
Venezuela
Argentina
Peru
Philippines
ChileColombia
Brazil
Malaysia Singapore
ThailandIndonesia
Taiwan
Hong Kong
Korea
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0 1 2 3 4 5 6 7 8
Gini coefficient
Per capita GDP growth rate (%)
Reducing Poverty 55
<Absolute Poverty (%) : 1961-1993>
Absolute poverty declined steeply from 48% in 1961 to less than 10% entering 1980s. Absolute poverty declined steeply from 48% in 1961 to less than 10% entering 1980s.
48.340.9
23.4
9.8 9.5 7.60
10
20
30
40
50
60
70
80
1961 1965 1970 1980 1988 1993
NationalUrbanRural
Bird-Eye View of Korean Economy (1962-2007)66
1962 1992 1997 2007
Economic Development
Per Capita GDP $87(101st)
$7,527 $11,176 $20,014(24th)
Investment (% of GDP) 13.8 37.3 36.0 29.0
Exports (% of GDP) 5.1 26.6 32.4 45.6
Imports (% of GDP) 16.8 27.7 33.0 44.8
Social Development
Life expectancy at birth 55 72 74 79
Infant mortality rate(per 1000 births) 90 8 5.8 -
1970 1980 1990 2000
Years School 5.7 7.6 9.5 10.6
Middle school enrollment ratio (%) 51.2 95.1 98.2 99.1
High school enrollment ratio (%) 28.1 63.5 88.0 96.4
Tertiary school enrollment ratio (%) 8.4 15.9 37.7 80.5
2. Contributing Factors behind Shared Growth
2.1 Initial Conditions before Take-off77
Korea was war-torn and divided, and was one of the poorest country with per capita GNP of $89 in 1961 (101st out of 125 countries)
Korea was war-torn and divided, and was one of the poorest country with per capita GNP of $89 in 1961 (101st out of 125 countries)
• Vicious cycle of low savings and low growth
* Domestic private savings : only 5% of GNP in 1961
• Vicious cycle of low savings and low growth
* Domestic private savings : only 5% of GNP in 1961
“Korea’s prospect for development is anything but bright!” (World Bank report)“Korea’s prospect for development is anything but bright!” (World Bank report)
“No hope for democratization” (The Times)“No hope for democratization” (The Times)
2.2 Outward-looking Development Strategy (1/3)88
Policy shift from “Import Substitution” to “Export Promotion” in the early 1960sPolicy shift from “Import Substitution” to “Export Promotion” in the early 1960s
• Export-promotion policy focused on labor-intensive industries in view of abundant and well educated labor force
• Key steps: Implementation of exchange rate reform (1964) and export incentive system such as export financing
• Export-promotion policy focused on labor-intensive industries in view of abundant and well educated labor force
• Key steps: Implementation of exchange rate reform (1964) and export incentive system such as export financing
International Coordination with Japan and United StatesInternational Coordination with Japan and United States
• Relations with Japan were normalized in 1965 despite fierce objection from Korean Citizens.
• Dispatched Korean troops to the Vietnam War during 1965-1973 to support the US forces.
• Relations with Japan were normalized in 1965 despite fierce objection from Korean Citizens.
• Dispatched Korean troops to the Vietnam War during 1965-1973 to support the US forces.
<Annex 1> Japanese Reparations Fund 99
A total of reparations from Japan : US$ 500 millionA total of reparations from Japan : US$ 500 million
• 300 mil $: for free (Japanese grants), 200 mil $: Japanese governmental loans (maturity: 20 years with
7-year grace period, interest rate: 3.5%)
• Use of the funds: construction of POSCO (Grant: 30.8 mil $, Loans: 88 mil $), Gyeongbu [Seoul-Busan] Express Way (6.9 mil $), and Soyang River Dam
• Burma, Philippines, Indonesia, Vietnam also received reparations from Japan.
• 300 mil $: for free (Japanese grants), 200 mil $: Japanese governmental loans (maturity: 20 years with
7-year grace period, interest rate: 3.5%)
• Use of the funds: construction of POSCO (Grant: 30.8 mil $, Loans: 88 mil $), Gyeongbu [Seoul-Busan] Express Way (6.9 mil $), and Soyang River Dam
• Burma, Philippines, Indonesia, Vietnam also received reparations from Japan.
Anti-government demonstration againstNormalization of relations with Japan on June 3, 1964
221717 Gyeongbu [Seoul-Busan] Express Way
Dispatched Korean Troops in Vietnam (1965-73)
2.2 Outward-looking Development Strategy (2/3)1010
Export-driven policy focused on promoting heavy and chemical industries (HCIs) in the 1970sExport-driven policy focused on promoting heavy and chemical industries (HCIs) in the 1970s
Policy Shift Toward
HCI Development
Iron and Steel
Electronics
Petro-Chemical
Products
Automobile
Ship-building
Machinery
• Motivation: To secure national security interests * Nixon Doctrine (1969): “defense of each Asian nation lay in the individual nation itself” - Reduction of US forces stationed in Korea by a third in 1971
• Motivation: To secure national security interests * Nixon Doctrine (1969): “defense of each Asian nation lay in the individual nation itself” - Reduction of US forces stationed in Korea by a third in 1971
2.2 Outward-looking Development Strategy (3/3)1111
Strong export promotion led to rapid export growth of 40% per year between 1964-80. Strong export promotion led to rapid export growth of 40% per year between 1964-80.
In particular, focus on labor-intensive exports in the 1960s led to large employment opportunities.In particular, focus on labor-intensive exports in the 1960s led to large employment opportunities.
• Unemployment rate continued to decline steadily as employment opportunities outgrew the labor force
• Unemployment rate continued to decline steadily as employment opportunities outgrew the labor force
<Annex 2> Explosive Growth Korea’s Export 12 12
ExportCommodity
Profile
1960 1970 1990 1999 1980
HCI Product
Agricultural Product
Light Industry Product
50%
Wig Automobile SemiconductorTextile
2003
Semiconductor, Mobile Phone, DTV, Display, Automobile, Ship-building, etc.
79.8%
14.1%
6.1%
<Annex 3> Changes in Export Commodity Profile: From Light industry to HCI
1313
<Annex 4> Job creation 1414
<Labor force growth, Employment growth, and Unemployment rate (%)>
- 6
- 4
- 2
0
2
4
6
8
1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Labor froce growthEmployment growthUnemployment rate
2.3. Educating Manpower (1/2)1515
Broad access to education raised level of manpowerBroad access to education raised level of manpower
• It was during the Korean War that compulsory primary education was declared in the Korean constitution.
• Why so strong education fever ( 敎育熱 ) in Korea? There also was strong demand for education, motivated by the unusual homogeneity of Korean society.
* Such equitable social structure was brought out by 1) the dissolution of traditional hierarchical social status system through the Japanese colonial occupation and 2) the land reform after the liberation from the Japanese occupation
* Easy social mobility has made education as a unique important means of individual advancement.
※ Korea’s equitable social structure seems to be unique: In Japan, a hereditary member of the Diet, about 30% out of total congressmen, that is unimaginable in Korea !!!
• It was during the Korean War that compulsory primary education was declared in the Korean constitution.
• Why so strong education fever ( 敎育熱 ) in Korea? There also was strong demand for education, motivated by the unusual homogeneity of Korean society.
* Such equitable social structure was brought out by 1) the dissolution of traditional hierarchical social status system through the Japanese colonial occupation and 2) the land reform after the liberation from the Japanese occupation
* Easy social mobility has made education as a unique important means of individual advancement.
※ Korea’s equitable social structure seems to be unique: In Japan, a hereditary member of the Diet, about 30% out of total congressmen, that is unimaginable in Korea !!!
2.3. Educating Manpower (2/2)1616
Promoting engineers and skilled workersPromoting engineers and skilled workers
• In the area of mechanical engineering, a total of 11 technical high-schools were established in each province\
• Korea excelled in International Vocational Training Competition (the Vocational Olympics), wining 9 times in a row during 1977-1991.
• In the area of mechanical engineering, a total of 11 technical high-schools were established in each province\
• Korea excelled in International Vocational Training Competition (the Vocational Olympics), wining 9 times in a row during 1977-1991.
22
<Annex 5> Why promote technical high school?1717
Absolute shortage of techniciansAbsolute shortage of technicians
• Composition of Engineer : technician : simple unskilled worker (graduate from elementary school) as of 1969
* Korea 1 : 2 : 15 * US 1 : 25 : 5
☞ Korean government, with a top priority, promoted technical high school education.
* Target: producing 50,000 technicians every year nationwide
• Composition of Engineer : technician : simple unskilled worker (graduate from elementary school) as of 1969
* Korea 1 : 2 : 15 * US 1 : 25 : 5
☞ Korean government, with a top priority, promoted technical high school education.
* Target: producing 50,000 technicians every year nationwide
22
<Annex 6> Focus on practical technique training (1/2) 1818
Government established technical high-schools, which trains their students practical technique, that can be directly applied to workplaces, after graduation.
Government established technical high-schools, which trains their students practical technique, that can be directly applied to workplaces, after graduation.
• The practical technique training programs were specified into finer and more specialized fields
• Curriculum consists of 1) general education and 2) special technique training
* The ratio of general education vs. special technique training was 40 : 60
* In the special technique training, the ratio of theory vs. practical training was 30 : 70
• The practical technique training programs were specified into finer and more specialized fields
• Curriculum consists of 1) general education and 2) special technique training
* The ratio of general education vs. special technique training was 40 : 60
* In the special technique training, the ratio of theory vs. practical training was 30 : 70
221188
Kum-Oh Technical School was the best technical high school in Asia in terms of facilities and teachers.Kum-Oh Technical School was the best technical high school in Asia in terms of facilities and teachers.
• Practical training equipment was imported from Japan and financed by Japan’s ODA which amounted to 1.2 billion yen between Dec. 1971 – Sep. 1974.
• 8 Japanese teachers were recruited for 3 years until the first class was graduated. Korean teachers were also dispatched to Japan for training.
• Practical training equipment was imported from Japan and financed by Japan’s ODA which amounted to 1.2 billion yen between Dec. 1971 – Sep. 1974.
• 8 Japanese teachers were recruited for 3 years until the first class was graduated. Korean teachers were also dispatched to Japan for training.
88
Case of Kum-Oh Mechanical Technical High-School 1919
In the case of 1976, 126 out of 400 incoming freshmen was valedictorians, 256 were top 5% students, and only 23 were top 10%.
In the case of 1976, 126 out of 400 incoming freshmen was valedictorians, 256 were top 5% students, and only 23 were top 10%.
• The students began to get license for precision machine technician, and to win in Vocational Olympic
• The students began to get license for precision machine technician, and to win in Vocational Olympic
Car Parade in Seoul honored Vocational Olympic Medalists
President Park encouraging Medalists in Vocational Olympic at Chongwadae
1969. 7
2.4. Dynamism in Agricultural sector2020
Green Revolution of the Agricultural SectorGreen Revolution of the Agricultural Sector
• Government support in 1) agricultural research, 2) investment in irrigation, and 3) forestry sectors.
* Developed new variety of crops, built dams on major rivers
• Government support in 1) agricultural research, 2) investment in irrigation, and 3) forestry sectors.
* Developed new variety of crops, built dams on major rivers
Rising productivity in agricultural sectorRising productivity in agricultural sector
Saemaul (New Village) Movement (rural community development program) to improve income as well as living conditions
Saemaul (New Village) Movement (rural community development program) to improve income as well as living conditions
• Self-help, diligence, and cooperation were three pillars of the Movement
• Self-help, diligence, and cooperation were three pillars of the Movement
• Between 1970 and 1977 the rice yield per hectare rose from 3.5 tons to 4.9 tons
• Income distribution between farmers and urban workers had improved from the mid 1970s.
• Between 1970 and 1977 the rice yield per hectare rose from 3.5 tons to 4.9 tons
• Income distribution between farmers and urban workers had improved from the mid 1970s.
221414<Annex 7> Rice Yield per Hectare (ton/ha)
2121
Japan
Korea
The Saemaul Movement (1/2) 2222
Survey result by a daily newspaper in 2008, asking Korean people, what was the most important national event in Korea for the past 60 years. (Multiple responses)
Survey result by a daily newspaper in 2008, asking Korean people, what was the most important national event in Korea for the past 60 years. (Multiple responses)
National event
1. New Village (Saemaul) Movement 40.2%
2. Seoul Olympic in 1988 30.1%
3. 5-year Economic Development Plans 29.9%
4. Kyungbu Express Highway 18.8%
5. Seoul World Cup 2002 15.1%
The Saemaul Movement (2/2)
Emphasis on Self-Help Emphasis on Self-Help
2323
• Stick and Carrot Approach * In 1970, a total of 34,656 villages were given free of charge 300-350
bags of cement to be used for community project that would improve living conditions (such as roads, bridge, wells, drainages, etc.)
* Under the principle of giving priority to successful villages, material support was given only to the self-help villages through the government evaluation.
- In 1971, only 16,600 villages(48% of total villages) with good evaluation continued to receive 500 bags of cement with 1 ton of iron reinforcing rod.
- Furthermore, electricity supply policy for a village was strictly linked to its performance of Saemaul Movement. (Shares of villages with electricity access in Korea: 20% in 1971 more than 97% in 1980)
* As a result, spirit of competition and cooperation spread throughout the country.
• Stick and Carrot Approach * In 1970, a total of 34,656 villages were given free of charge 300-350
bags of cement to be used for community project that would improve living conditions (such as roads, bridge, wells, drainages, etc.)
* Under the principle of giving priority to successful villages, material support was given only to the self-help villages through the government evaluation.
- In 1971, only 16,600 villages(48% of total villages) with good evaluation continued to receive 500 bags of cement with 1 ton of iron reinforcing rod.
- Furthermore, electricity supply policy for a village was strictly linked to its performance of Saemaul Movement. (Shares of villages with electricity access in Korea: 20% in 1971 more than 97% in 1980)
* As a result, spirit of competition and cooperation spread throughout the country.
2424<Annex 8> The Saemaul Movement
<Hypothetical Layout of a Typical Village and Saemaul Project Undertaker >
1. Village access roads 2. Old bridges 3. Village roads 4. Sewage system 5. Thatched roofs 6. Old fence of farm house
7. Traditional Wells 8. Village halls 9. Banks of brook10. Feeder roads11. Rural electrification 12. Village owned telephone
13. Village owned hot bath 14. Children’s playground 15. Cloth washing place 16. Planting of trees
2.5 The Role of “Monthly Meeting” (1/7) Role of “Monthly Meeting” (1/7)2525
5-year economic development plans and the role of“Monthly Meetings” 5-year economic development plans and the role of“Monthly Meetings”
• 5-year plan: suggesting blue print and vision
• Monthly meeting: monitoring and trouble-shooting session
* Monthly Export Promotion Meeting and Monthly Economic Trends Report Meeting
• 5-year plan: suggesting blue print and vision
• Monthly meeting: monitoring and trouble-shooting session
* Monthly Export Promotion Meeting and Monthly Economic Trends Report Meeting
Bureaucrats, bankers, business associations attendedBureaucrats, bankers, business associations attended
• During 1965-1979, about 300 monthly meetings were held• During 1965-1979, about 300 monthly meetings were held
2222
Monthly Export Promotion Meeting prepared by MCIMonthly Export Promotion Meeting prepared by MCI
• Export targets were set for each firm based on projected sales.
• Best performers were rewarded with financial supports and were given achievement awards
• Export targets were set for each firm based on projected sales.
• Best performers were rewarded with financial supports and were given achievement awards
Monthly Economic Trends Report Meeting prepared by EPBMonthly Economic Trends Report Meeting prepared by EPB
88
The Role of “Monthly Meeting” (2/7)The Role of “Monthly Meeting” (2/7)2626
• Success stories of Saemaul Projects were presented at this meeting. Between 1971 and 1979, 150 Saemaul leaders presented their success stories.
• Success stories of Saemaul Projects were presented at this meeting. Between 1971 and 1979, 150 Saemaul leaders presented their success stories.
Monthly Export Promotion Meeting
Monthly Export Promotion Meeting
Monthly Economic Trends Report MeetingHonoring Saemaul Leaders
22151519192929Honoring Saemaul Leaders
22 <Annex 9> Frequency of Monthly Meetings
Economic Trends Meeting Export Promotion Meeting Total
1965 11 5 16
1966 10 11 21
1967 12 12 24
1968 11 12 23
1969 11 12 23
1970 11 12 23
1971 11 11 22
1972 11 11 22
1973 11 10 21
1974 11 11 22
1975 9 10 19
1976 8 10 18
1977 8 10 18
1978 7 9 16
1979 4 6 10
2727
222224248888 <Annex 10> List of Participants for the Third Monthly Export Promotion Meeting in 1967 (1/2)
2828
The List of AttendantsCentral Government
Ministers and Vice-ministers
The Deputy Prime Minister, Minister of Home Affairs, Minister of Finance, Minister of Health & Welfare, Minister of Transportation, Minister of Construction, 2 Ministers without portfolio, Vice-minister of Foreign Affairs, Vice-minister of Commerce and Industry, Vice-minister of Public relations, 3 PACST(Presidential Advisory Council on Science and Technology) members, Commissioner of National Tax Service, Chief of Korea Forest Service, and etc. (18)
Directors and others
2 Directors from Ministry of Foreign Affairs, 4 Directors from Ministry of Finance, 1 Director from National Tax Service, 6 Directors from Ministry of Commerce and Industry, 1 Director from Ministry of Agriculture, 1 Director from Ministry of Maritime Affairs & Fisheries, 2 Secretaries from Prime Minister (17)
Financial institution Governor of BOK, Governor of KDB, President of KEB, President of Industrial Bank Korea, CEO of Federation of Agricultural Credit Cooperatives, CEO of Federation of Fishery Credit Cooperatives (6)
222224248888 <Annex11> List of Participants for the Third Monthly Export Promotion Meeting in 1967 (2/2)
2929
State-owned institutions, business associations
President of KOTRA, CEO of KITA, Chairman of KCCI(Korea Chamber of Commerce & Industry), Vice chairman of FKI(Federation of Korean Industries), Executive Vice Chairman of KITA, Chairman of Korea Tourism Organization, CEO of Korea Express, CEO of KOSIC (8)
Academia 3 Professors
Law makers and Prosecutors
Director from the ruling party, Chairman of the Commerce, Industry Committee, 1 Law maker, 1 Prosecutor (4)
Representatives from businessmen
CEOs or presidents from leading companies (12)
Regional Reprensentatives Mayor of Pusan, Governor of Kyungsang-Namdo, etc. 10 chiefs in the region of Pusan and Kyungsang-Namdo 8 professors in the region of Pusan and Kyungsang-Namdo
Source: YH Rhee (2006): “Economic Policy Coordination and Assessment: Monthly Economic Trends Meeting and Monthly Export Promotion Meeting.”
2222
Troubled shooting session: identification of majorbottlenecks & immediate policy responsesTroubled shooting session: identification of majorbottlenecks & immediate policy responses
• If some projects were found to be lagging behind schedule, the causes of the delay were analyzed and a decision on corrective action was taken, often on the spot.
• If some projects were found to be lagging behind schedule, the causes of the delay were analyzed and a decision on corrective action was taken, often on the spot.
2424
By doing so, this led to vision sharing among gov’t and private sector that allowed better policy coordinationBy doing so, this led to vision sharing among gov’t and private sector that allowed better policy coordination
88
The Role of “Monthly Meeting” (3/7)The Role of “Monthly Meeting” (3/7)3030
2222
Examples of Troubled shooting sessionExamples of Troubled shooting session
• When the government assessed the progress of plant
constructions for the chemical industry complex and found that
they were well behind schedule because the lending banks were
providing insufficient support, it summoned the bank presidents
and asked them for greater cooperation in supporting the project
• When the government assessed the progress of plant
constructions for the chemical industry complex and found that
they were well behind schedule because the lending banks were
providing insufficient support, it summoned the bank presidents
and asked them for greater cooperation in supporting the project
242488
The Role of “Monthly Meeting” (4/7)The Role of “Monthly Meeting” (4/7)3131
• When exporters reported in the monthly export promotion
meetings that the international market was slow and that they
had begun accumulating inventory, the government urged
bankers to extend greater working capital credit to exporters.
• When exporters reported in the monthly export promotion
meetings that the international market was slow and that they
had begun accumulating inventory, the government urged
bankers to extend greater working capital credit to exporters.
222828
Presentation of success story by village leaders in front of ministers and political leaders.Presentation of success story by village leaders in front of ministers and political leaders.
• President Park emphasize the importance of success story of Saemaul project. He believed the success story itself could be a good textbook.
• Success story were presented in the Monthly Meeting, which key ministers and political leaders attended.
* Listening to the success story, the ministers and political leaders realized and understood the Saemaul movement better
• President Park emphasize the importance of success story of Saemaul project. He believed the success story itself could be a good textbook.
• Success story were presented in the Monthly Meeting, which key ministers and political leaders attended.
* Listening to the success story, the ministers and political leaders realized and understood the Saemaul movement better
The Role of “Monthly Meeting” (5/7)The Role of “Monthly Meeting” (5/7)3232
2222
Monthly Economic Trends Report Meeting served as a trouble shooting session for Saemaul projectMonthly Economic Trends Report Meeting served as a trouble shooting session for Saemaul project
• In one of the meetings, a village leader told how he was frustrated because he could not find any hospital in the village when an urgent sick person needed help.
→ The government responded to establish a village clinic at each village, where a medical college graduated intern and a nurse dispatched.
• In one of the meetings, a village leader told how he was frustrated because he could not find any hospital in the village when an urgent sick person needed help.
→ The government responded to establish a village clinic at each village, where a medical college graduated intern and a nurse dispatched.
242488
The Role of “Monthly Meeting” (6/7)The Role of “Monthly Meeting” (6/7)3333
• Another leader told about the inconvenience occurred in emergency situation because they do not have a telephone.
→ President Park instructed to install a village telephone.
• Another leader told about the inconvenience occurred in emergency situation because they do not have a telephone.
→ President Park instructed to install a village telephone.
2222
• Every official had to be alert to ensure that a project on his authority did not become an object of negative attention at the meeting in the presence of the President.
• Performance of officials was the critical element of their evaluation and promotion.
• Relatively corruption-free
• Every official had to be alert to ensure that a project on his authority did not become an object of negative attention at the meeting in the presence of the President.
• Performance of officials was the critical element of their evaluation and promotion.
• Relatively corruption-free
2525
Monthly Meetings helped review both bureaucratic andfirm performance → “Beauty contest” for gov’t officialsMonthly Meetings helped review both bureaucratic andfirm performance → “Beauty contest” for gov’t officials
88
The Role of “Monthly Meeting” (7/7)The Role of “Monthly Meeting” (7/7)3434
3. Lessons from the Korean Experience
Lessons from Korea’s Experience3535
• Equal opportunity (dissolution of traditional hierarchical social status system )
• Competition, performance-based government support
• Broad access to education and raising technical know-how
• Growth with job-creation, initially led by labor intensive export promotion
• Promoting spirit of self-help: Saemael movement
• Equal opportunity (dissolution of traditional hierarchical social status system )
• Competition, performance-based government support
• Broad access to education and raising technical know-how
• Growth with job-creation, initially led by labor intensive export promotion
• Promoting spirit of self-help: Saemael movement
Major contributing factors for shared growth were: Major contributing factors for shared growth were:
