Senin, 09 November 2015
Key Success Factors - Korean Experience
Diposting oleh aktivitas kelas
It's great opportunity to have insightful lecture from Mr. Lee about what Korea has been through towards its industrialization era. This is first article about Korean experience shared to followers of SiBernas Blog.
Understanding Korean History of industrialization may give us a better picture that inspire many developing countries to cope with their problems. Korea shows tremendous successes especially in economic development. Data tells us that in terms of GDP per capita Korea (104 USD) performed well below Mexico (369 USD), Phillipines (157 usd), and Srilanka (140 usd) in 1960. However, it only took 41 years for Korea to flip the position. In 2013 GDP per capita of Korea (25,977 usd) was far above those three countries (10307 usd, 2765 usd, and 3280 usd respectively).
The question is what are key factors leading to current result?
In short, there are three (3) aspects underpinned Korea development up to current stage: (1) Good Government; (2) Friendly Market Environment; and (3) Supporting Condition (internal and external).
Good Government involved continuation of reforms as well as promoting coherent bureaucracies. During 60s to 70s, President showed commitment through chairing monthly Trade and Export Promotion Meeting. Reform was also being done through transparent and competitive selection processes for government employees. In the past, government had experienced to layoff 1/8 of its employees.
Moreover, Korean Government set friendly environment for market in few ways. (1) it changed policy from import substitution to export promotion even though it's primarily because Korea was lacking of domestic fund.; (2) Government provided necessary infrastructure (energy, transportation) in timely manner; and (3) government was set currency exchange such that it promoted export policy. It is also worth to noting that Korea government set export policy that focus on few industries that grouped in heavy and chemical industries. In 1970s government decided to focus on 5 industries: (1) ship building; (2) electronics; (3) automobile; (4) steel; and (5) chemical. The focus was decided based on three criteria: (1) a chance to be very successful; (2) backward linkages; and (3) generate employment.
Finally, Government set up necessary condition to support industrialization era in two directions human and social capital. Government promoted equal education to all people which 'created ' more egalitarian people. In terms of social capital, the well known program that changed the whole story is Sae Maul movement. It succeeded to encourage citizens to change their habit to superior work ethics (competent and competitive). In fact, Korea was also gifted by external condition that bolstered economic development. China was sleeping when Korea started its development.
In case of Indonesia, the key factors above can be adapted or adopted for its own good.
Sources:
(1) Lecture materials; Mr. Siwook Lee (Executive Director of KDI
(2) Our best uncle Google
Korean Flag |
The question is what are key factors leading to current result?
In short, there are three (3) aspects underpinned Korea development up to current stage: (1) Good Government; (2) Friendly Market Environment; and (3) Supporting Condition (internal and external).
Good Government involved continuation of reforms as well as promoting coherent bureaucracies. During 60s to 70s, President showed commitment through chairing monthly Trade and Export Promotion Meeting. Reform was also being done through transparent and competitive selection processes for government employees. In the past, government had experienced to layoff 1/8 of its employees.
Moreover, Korean Government set friendly environment for market in few ways. (1) it changed policy from import substitution to export promotion even though it's primarily because Korea was lacking of domestic fund.; (2) Government provided necessary infrastructure (energy, transportation) in timely manner; and (3) government was set currency exchange such that it promoted export policy. It is also worth to noting that Korea government set export policy that focus on few industries that grouped in heavy and chemical industries. In 1970s government decided to focus on 5 industries: (1) ship building; (2) electronics; (3) automobile; (4) steel; and (5) chemical. The focus was decided based on three criteria: (1) a chance to be very successful; (2) backward linkages; and (3) generate employment.
Finally, Government set up necessary condition to support industrialization era in two directions human and social capital. Government promoted equal education to all people which 'created ' more egalitarian people. In terms of social capital, the well known program that changed the whole story is Sae Maul movement. It succeeded to encourage citizens to change their habit to superior work ethics (competent and competitive). In fact, Korea was also gifted by external condition that bolstered economic development. China was sleeping when Korea started its development.
In case of Indonesia, the key factors above can be adapted or adopted for its own good.
Sources:
(1) Lecture materials; Mr. Siwook Lee (Executive Director of KDI
(2) Our best uncle Google