FANDOM


Project Outline

To identify

  • Level of prosperity achieved
  • Timeframe in which it was achieved
  • Major causes of that achievement
  • Major fields in which it has been achieved
  • Role of the USA in this achievement
  • Comparison and contrast with the performance of North Korea during the same timeframe

Research Information

Prosperity of the South Korea

Since the cessation of the Korean War in 1953, this nation of 49 million people has transformed itself from one of the poorest countries in Asia into a stable democracy with an advanced high-technology economy in the trillion dollar class. In the aftermath of the 1997 Asian financial crisis, major government reforms cut corporation taxes and regulations, liberalized the banking sector, and increased openness to foreign capital. The South Korean economic system is still distinguished by high interventionism and close co-operation between government and business conglomerates. The transport infrastructure is highly developed, and a government-led initiative is constructing the most comprehensive broadband network in the world. South Korea is highly urbanized and racially homogeneous. Christians and Buddhists each comprise about 25 percent of the population. The country has one of the highest suicide rates in the OECD, attributed partly to long working hours and intense educational pressure.

Level of prosperity achieved:

South Korea ranks in 22nd place in the Prosperity Index. The country’s performance in Material Wealth (12th out of 50 countries) dramatically exceeds its performance in Life Satisfaction (36th out of 50 countries).

Prosperity Scorecard
  • South Korea sits in the upper third of the Wealth section of the Prosperity Index, ranking 12th out of 50 countries.
  • South Korea ranks in the 78th percentile globally for government effectiveness, in the 71st for regulatory quality, and in the 69th for its ability to control corruption. Entrepreneurs need twenty-two days to establish and register a new business, only three more than on average in the OECD
  • South Korea sits in the upper third of the Wealth section of the Prosperity Index, ranking 12th out of 50 countries.
  • Today, according to the 2007 Index, South Korea's economy is 68.6 percent free, making it the world's 36th freest economy. Unfortunately, however, a closer look reveals that South Korea's level of economic freedom is neither as comprehensive nor as concrete as it should be. Source

Timeframe in which it was achieved:

The secret to South Korea’s economic miracle, its leap from poverty to prosperity within a single generation.

Major causes of that achievement:

  • commercialization of new ideas, driven by a highly educated workforce, as well as a high level of capital investment
  • South Korea is one of the least well-rounded countries, with its Material Wealth vastly exceeding its Life Satisfaction. This is largely driven by long working hours, which in rich countries tend to be strongly correlated with low levels of life satisfaction
  • South Korea sits in the upper third of the Wealth section of the Prosperity Index, ranking 12th out of 50 countries.
  • South Korea ranks in the 78th percentile globally for government effectiveness, in the 71st for regulatory quality, and in the 69th for its ability to control corruption. Entrepreneurs need twenty-two days to establish and register a new business, only three more than on average in the OECD.

History

“Individual or Country Prosperous is on Freedom”

Decision Taken by the Government to be Independent:

1.After losing the nation's right and independence in 1910, Korean people organized independence movements such as 3.1 Movement in 1919 and 6.10 Movement in 1926. In Shanghai, China, the Korean temporary government was established in 1919. The Korean temporary government led Korean independence movements, and mobilized military activities by organizing the Korean Independence Army in Manchuria and in Yeon-hae-ju. Amid Korean people's consistent resistance to Japanese colonialization, on August 15, 1945 Allied Forces declared their victory in World War II, and Korea got out of Japanese rule, restoring its right as an independent nation.

Culture:

Food Culture:“There is no other Victory than that of controlling oneself” It is Discipline derived from Culture.

Health is Wealth. Prosperity is energy directed in a proper direction (Production).Energy is generated by Proper food.

When Usual Korean meals consist of rice and side dishes.
Koreans have used various ingredients and developed different recipes.

Therefore, there is a large variety of dishes and food from different regions and for different seasons.

Gim-chi and other fermented sauces are representatives of Korean traditional food, and Koreans take much pride in them.

For Koreans, rice is a staple food. Their typical side dishes are soups, pot-stews with various ingredients, cooked vegetables, salads, pickles, salted sea food, dried fishes, and steamed meat. Gimchi, paste or sauce, and salted sea food are always served.

The uniqueness of Korean food is in seasoning. For most of their food, Koreans use various kinds of seasoning made of soy sauce, scallions, garlic, sesame, sesame oil, pepper, and red pepper powder. For More Info...

Major Fields in which it has been achieved:

Material Wealth:

Invests Productively

South Korea’s governance environment is favorable for business, although not exceptionally so by the standards of the world’s rich countries: South Korea ranks in the 78th percentile globally for government effectiveness, in the 71st for regulatory quality, and in the 69th for its ability to control corruption. Entrepreneurs need twenty-two days to establish and register a new business, only three more than on average in the OECD. However, perhaps boosted by a high savings rate, the country has achieved a quite high level of productive capital accumulation in factories, offices, and technology. South Korea’s score on this factor is comparable to New Zealand. One notable weakness, now that South Korea has achieved ‘developed’ status, is in the country’s domestic markets, which in contrast to the international sector, appear to be over-regulated and lacking in competition, potentially decreasing the efficiency with which capital is used.

Commercializes New Ideas

These factors have been the driving force of South Korea’s meteoric growth – its leap from poverty to prosperity, at least as far as material wealth is concerned, over the course of a single generation. South Korea has been notably successful at commercializing and exploiting innovations: a full nine percent of the country’s GDP derives from the export of high-technology goods. The country’s highly educated workforce – possessing, on average, over four years of secondary education (4.2 years) – has been one secret to this performance. Now that South Korea is developed, however, it may wish to integrate more into the global economy. While exports have been high, imports have been restricted, as has foreign direct investment. This limits the country’s exposure to global innovations, especially in the domestic economy.

Avoids Dependence

As one would expect given South Korea’s spectacular development performance in years past, the country has no problems in this area.

Material Wealth Scorecard

Life Satisfaction:

South Korea sits two-thirds of the way down the Life Satisfaction section of the Prosperity Index, ranking 36th out of 50 countries.

Opportunities and Freedom

South Korea is an electoral democracy, providing its citizens strong political rights. It guarantees its citizens marginally fewer civil liberties, however. Opportunities for social and political mobility are also constrained, with South Korean women under-represented in political life. Despite these constraints, South Koreans report a modest degree of freedom of choice in their society. The main factor driving down South Korea’s Life Satisfaction rating is leisure time: the average non-agricultural working week is forty-seven and a half hours long, the longest on the Prosperity Index. In developed countries – a group which South Korea has now, in effect, joined – leisure time is highly correlated with life satisfaction, and South Koreans have little of it.

Sources of Misery:

Unemployment rates are notably low in South Korea, with only four percent of the job-seeking population out of work. Wages are fairly high: the country’s GDP is estimated to amount to $20,400 per capita. Combined with South Korea’s long disease-adjusted life expectancy, this would suggest that the ‘miserable minority’ in the country is fairly small. There is one exception, however: South Korea has the second-highest divorce rate in the Prosperity Index, better only than Zimbabwe and worse than the notoriously divorce-prone US: almost four percent of married couples divorce in any given year (3.9 percent). Research indicates that one of the most powerful forces producing misery is the severing of social bonds, whether through unemployment or divorce.

Social Support Networks:

South Korean society is relatively secular, with fifty percent of the population reporting that religious faith is ‘very important’ in their lives. The strength of community networks appears to fall around global norms, with South Korea falling exactly on the global average in the Index for this indicator.

Life Satisfaction Scorecard

Role of the USA in this achievement:

  1. The United States and the Republic of Korea (ROK) took an important step forward last week to strengthen their ties and promote prosperity in the two nations. The successful completion of the first round of negotiations for the US-ROK Free Trade Agreement (FTA) marks the beginning of a process. Round One of the US-ROK FTA Talks Sails Through
  2. A U.S.-South Korea free trade agreement, while not an antidote to alliance tensions that have recently arisen, presents a unique opportunity for both countries to commit to a new and more meaningful level of cooperation that will be of profound mutual benefit and enhance the bilateral relationship. A Bumpy Road for the US. – ROK Free Trade Agreement

Comparison and contrast with the performance of North Korea during the same timeframe:

For 20 years after the war, North Korea produced more than South Korea. Richer than the South in natural resources like coal and iron ore and it possessed more heavy industry than the agricultural South. But its rigid centralized economy and policy of chuche or self-reliance it stagnated. This combined with the loss of support from the former USSR, floods and drought it faced shortages in food, electrical power, fuel, and industrial equipment.

The South enjoyed exceptional prosperity. Due in part to its policy of enforced conglomerates called chaebols; it has become the world's 12th largest economy. The dip in 1998 caused by a major increase in worker's salaries.

Economic Growth


Prosperity Index

3D-Graph Click Here

Additional Information:

Economic history of South Korea:

The world in which an empire could be gained or lost on a battlefield has long since passed into one where power means production and where empires. Grow out of industry and commerce. From the collapse of once-mighty Britain, with its closed factories and lost colonies, to the rise of Japan out Of the destruction of war, it is economic developments, to an unprecedented extent, that have shaped the history of our century. With over 300 photographs And 50 pieces of full-color artwork and maps, Wealth and Poverty offers a lively, accessible survey of the economic history of the twentieth century. From the Russian Revolution to the roaring twenties and the Great Depression, to war and the Marshall Plan, to the rise of the Far East and the 1973 OPEC Oil embargo, the authors bring the rapid changes of the past nine decades to life, vividly demonstrating the central role of economics in shaping our Times. Edited by Sidney Pollard--joined by consultant editors Carlo Cipolla and David Landes--this volume interweaves political and economic developments,Probing the rise of new technology, the impact of war and revolution, the challenge of socialism, and the emergence of multinationals. Special features Debate issues of particular importance, such as urban unemployment, the destruction of rainforests, and Japanese management techniques. And throughout, Scores of informatively captioned photographs and detailed capsule biographies bring the images and personalities of the century to life. Many people are Intimidated by economics. They don't understand its terminology, its principles, or its impact on world affairs. Wealth and Poverty, with its expansive Scope and accessible format, brings this difficult subject into perspective, vividly portraying the drama of a century in which the almighty dollar--or yen--has guided the fate of nations.

Reference:

http://www.prosperity.org/profile.aspx?id=KS - Prosperity Index

http://www.guardian.co.uk/korea/0,,331519,00.html -North Korea and South Korea Article

http://www.paulnoll.com/Korea/History/South-Korean-compare-GNP.html

http://www.paulnoll.com/Korea/History/Korean-statistics.html -Comparison North and South Korea


http://www.paulnoll.com/Korea/History/Korean-statistics.html

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