Rapid Development of South Korea
South Korea’s development has made great advancements since 1960 after a war tore the country apart. To many countries, Korea is an example of phenomenal success in economic growth. After the war, Korea was one of the poorest countries in the world, considered at the same level as the poorest parts of Africa. The government consisting of military leaders had little political or administrative experience and lacked a stable development program. Despite whatever problems they faced, the leaders, with the help of economists and planners, established the Economic Planning Board, launching a program that focused on exports-based rapid industrialization. For any country, the effective use of its resources is a necessity in experiencing quick growth.
The development program was implemented in consecutive 5-year plans with a strict focus on encouraging industry. Government policies encouraged private entrepreneurs and businesses got access to perks such as import and tax benefits as wells as the chance to borrow from foreign institutions. With the increase of imported materials due to these policies, industries such as textiles, clothing, and electronics saw immediate benefits. South Korea borrowed capital from other countries to finance the expedited development initiatives. As business grew, the nation began to experience monetary increase in both earnings and savings. The financial market grew steadily and the manufacturing sector also grew as demand increased.
Comparatively, South Korea is a better example of growth than China, Taiwan, Singapore, or Hong Kong.