South Korea's Political Economy Essay

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Anastasia Savchenko 201308024 Essay question 1 – Korea’s Political Economy When hearing the phrase East Asian Miracle the majority of people may think of Japan or Singapore, China or Malaysia, but most certainty all of them will remember South Korea. South Korea’s economic growth was unprecedented. Being one of four Asian tigers it emerged from a chaotic history, and within a relatively short period of time went from rags to riches. The country borders with North Korea and separated from China and Japan by the Sea of Japan, Yellow Sea and Korea Strait. This neighborhood had a great influence on South Korea’s development mostly hindering economic growth. However, despite its historically volatile location the country is the most industrialized member country of the OECD. Republic of Korea is the only nation in the world which turned from a recipient of OECD aid into a member of donor committee. Many economists describe South Korea’s economic transformation from poverty to one of Asia’s biggest economies as “The Miracle on the Han River” referring to South Korea's postwar export-fueled economic growth including rapid industrialization, technological achievement, large rise in living standards and education and success in sports. This miracle has become a reality because of 5-year Economic Development Plans which helped mobilizing national resources in establishing a self-supporting industrial economy. This growth was accompanied by a democratization and globalization. The critical strategy Korean government chose as authors of “International business management: Asian perspective” claim was realistic, focused on the long-run achievement and the roles and relationships of business and government created an enabling structure for the strategy. At the same time it has combined growth with equity. As The Economist says: “Between 1980 and 1997, its Gini

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