AN A CITIZEN THAT WANTS HIS COUNTRY TO DEVELOP, I MADE INVESTIGATION ON HOW ASIA TIGER COUNTRIES DEVELOPED. South Koreas Noble Policy and Favorable Geography Though they began the second half of the twentieth century as impoverished countries, South Korea and Taiwan never needed to be so poor. Both possessed beneficial geography which could have caused them to become just as wealthy as the Western Europeans. However, each was left behind for one reason or another. For South Korea and Taiwan, both were stuck fighting brutal civil wars which completely demolished their infrastructure and exhausted their resources. Korea was originally one country ruled by Japan from 1910 until the end of World War Two. The time spent under colonial rule had done little to improve Koreas subsistence economy, and the failure to hold democratic elections after the war had caused escalating political tension which eventually resulted in a war between the Communist North and the Capitalist South. This war split the country into two very different economic systems; one based on market principles with a Democratically elected government, and the other a dictatorship which favored communist principles. Shortly after the end of the Korean War, the United States started growing concerned with Communisms growing popularity among impoverished nations. It had previously helped South Korea defend its borders to prevent the further spread of Communism, and so decided to aid South Korea in developing its market by subsidizing (paying for) 70% of South Koreas exports. This subsidy meant that Koreans could sell products such as rice on the world market for greatly reduced prices (since the United States government was shouldering most of the cost), giving Korean corporations a significant advantage over the companies of other developing economies such as Egypt or Ecuador. This advantage helped Korea transition from a subsistence economy producing largely agricultural products (like rice) to a major manufacturer of goods in just seven years (1953-1960). Thankfully, the South Korean government instituted very good economic policies, funding excellent education programs in public schools and building vital infrastructure for their cities and ports. But importantly, South Korea was not further held back by warfare any longer, nor did it have persistent droughts, nor was it landlocked or have a resource-based economy. These prerequisites helped to give the nation an unusually easy transition into the second stage of economic development, and over time this meant that the country gradually become a wealthy nation through consistent growth followed by reinvestment in the economy. Korea gradually became one of the best educated countries in the world, with one of the highest rates of scientific literacy and mathematical knowledge. Its highly skilled, technologically educated public caused Korea to eventually become one of the worlds foremost exporters of high-tech goods, including software and electronics; South Korea is the worlds leading producer of memory chips, and its Samsung Company is a corporate giant which exports various electronics including televisions, microwaves, cell phones, air conditioners and washing machines.
Posted on: Fri, 11 Apr 2014 08:19:26 +0000
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