Korea’s Economic Development : Lessons and Suggestions for Developing Countries

Korea’s Economic Development : Lessons and Suggestions for Developing Countries

This paper attempts to draw policy implications on the development strategy based on the Korean experiences in ‘60s and ‘70s. It is well-known that Korea switched her development strategy to the export oriented (and unbalanced) one from the import substitution, or "Autarkic" development strategy. It was also market-friendly. Under this strategy, all available resources were concentrated to the leading export industries in ‘60s and heavy and chemical industries in ‘70s. Some detailed strategies in the areas of monetary, fiscal, industrial, foreign exchange, and other sectors are identified and critically evaluated whether they could be adopted as the feasible development strategies for any developing countries. It is pointed out that these strategies for success could cause problems later, so that the switch of the policy stance at the right time is important. I would like to thank three anonymous referees for their valuable comments. All the remaining errors are mine.

This paper attempts to draw policy implications on the development strategy based on the Korean experiences in ‘60s and ‘70s. It is well-known that Korea switched her development strategy to the export oriented (and unbalanced) one from the import substitution, or "Autarkic" development strategy. It was also market-friendly. Under this strategy, all available resources were concentrated to the leading export industries in ‘60s and heavy and chemical industries in ‘70s. Some detailed strategies in the areas of monetary, fiscal, industrial, foreign exchange, and other sectors are identified and critically evaluated whether they could be adopted as the feasible development strategies for any developing countries. It is pointed out that these strategies for success could cause problems later, so that the switch of the policy stance at the right time is important. I would like to thank three anonymous referees for their valuable comments. All the remaining errors are mine.