|
Friday, September 02, 2005
Zosa: Learning from Korea
By Elbert Zosa
Biz Vantage
MODEL. “In 1963, the year of my graduation from Seoul National University, Korea’s per capita income was a mere $100 or about one third that of the Philippines. Poverty-stricken Koreans considered the Philippines at one time as an all but unreachable role model for their own war-torn country.”
“There were just over 18,000 manufacturing firms in Korea at the time and most of them were very small and had little experience…They could not even make nail clippers or bake good quality bread…Severe shortages and poor quality characterized the Korean manufacturing sector.”
These are quotes from the book, The Rise of the Korean Economy, by Byung-Nak Song, head of the Industrial Policy Division of the Korea Development Institute, Economics professor at Seoul National University and former visiting professor at Harvard.
As we all know, Korea grew quickly, becoming a newly industrializing economy by 1971. It was also hit badly by the Asian financial crisis of 1997 but it rebounded quickly due to patriotism, discipline and national leadership.
Byung-Nak Song continues, “By 2002, Korea was “the largest producer of ships in the world, fifth largest producer of automobiles, number one or two in semiconductors and in cellular phones, thirteenth largest economy in the world.” All these were accomplished despite the lack of natural resources in Korea, despite being badly ravaged by the Korean War and despite the lack of education that the Koreans experienced as a Japanese colony.
It helped that Korea was desperate to escape from poverty and outdo North Korea, which had a superior economy in 1963 and was a constant threat. The successful strategy was initiated by the leadership of Park Chung Hee, who pointed Korea to export-orientation and rapid industrialization. President Park’s favorite expression- “Exports first.” The most important advantage of the export strategy was that “workers, managers and businessmen are put under great competitive pressure to upgrade themselves to meet global standards.”
(Contrast this to our import-substitution strategy that protected local manufacturers by a long period of tariffs that allowed business to be soft and globally uncompetitive.)
Byung-Nak Song attributes Korea’s current global competitiveness to human capital, political stability and the free market economic system (capitalism). Byung says, “Korean parents will sacrifice nearly everything for their children’s education.” Firms also continually upgrade their employees’capability.
On political stability, Byung cites “clear-cut long term national vision, comprehensive strategy, competent, self-sacrificing leaders and leadership commitment.” Byung says many poor countries have not developed because “their leaders do not meet the requirements of good leadership.”
We may not agree with everything that Korea did, especially the martial rule under Park.” Park tended to regard politicians as no more than libertines. “Discussions over economic affairs were encouraged, however.”
There is much to learn on economic strategy and government commitment to pulling up one’s people from poverty from the Korean example.
Our country has stumbled badly and collectively. We have failed to upgrade the welfare of our people. It is time to do better .We will do better if we learn our lessons.
(elzosa@yahoo.com)
(September 2, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
