This study reflects on the process of industrial development that began in Korea and the rest of the world in the 1960s, and explores options for the economic development strategy for the future of these countries.
South Korea has not only been “industrialized,” but “industrially developed”: industries and manufacturing have been indispensable to the country’s overall economic development. There are a few common patterns of the process of industrial development in any country. However, not all countries undergoing this process achieve economic growth. For example, Brazil, a major producer of the plant Hevea, saw its export market radically shrink and one of its most prosperous industries collapse overnight as the international center of Hevea cultivation shifted to Southeast Asia. Industrial development in developing countries requires that certain conditions are met. The three Baltic states and Benelux were relative latecomers to industrialization compared to countries like the United States, but they nonetheless succeeded with industrial development thanks to the solid bases for industrialization they had cultivated at home. The case was a bit different for other developing countries. Brazil again provides a good example. It was their failure and uncertainty on the domestic market that prompted Brazilian industries to start focusing on exporting manufactured goods in the 1960s. Chile, Uruguay, and other Latin American states followed suit. These Latin American countries are by no means smaller than South Korea. They possess large territories and significant populations, who have helped to strengthen the stability of their respective domestic markets and exerted direct and indirect positive effects on the development of technologies and industries.
The argument that populations exert these decisive influences on the formation of domestic markets and also on the development of industries is again reinforced by the cases of Denmark and Norway. These countries’ populations may be small, but these countries benefitted economically from the fact that they are located next to Western Europe and the market that Western Europe, as a whole, provided. By contrast, Japan has been unable to benefit from its proximity to other countries of East Asia, and has been more successful on the American market with its manufactured goods. Korea is unique in this regard, as it has managed to increase its exports and gross national product considerably despite lacking access to a friendly neighboring market and having a small territory and population.
Laws and institutions also matter to industrial development. The Philippines and the former colonies of France have failed to achieve industrial development, even though they had acquired advanced technologies from their colonizers. Technological development and innovation are also crucial to industrial development. Other important factors include the setoff of the CIF price on the international market and the development of human capital.
공업발전과정과 경제개발전략의 선택(Process of industrial development and choice of economic development strategy)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration
Industry and Technology < General
|Holding||KDI; KDI School|