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Lessons from Korea’s Development Experience

After the Korean War in 1950, Korea was marked by political chaos and economic stagnation. In 1961, Park Chung-hee came to power through a military revolution. He recognized economic development as a key to the establishment of a stable country as well as his own political success, and implemented all-out economic development plans. As a result, it brought about remarkable economic progress, and Korea transformed from one of the poorest countries in the world to a modern industrial nation within a span of single generation. Such incredible economic growth is attributed to several factors, such as strong commitment of the leadership to economic development, comprehensive agreements on economic development plan both inside and outside of the country, quantitative improvement in statistical and analytical work, market mechanism strategy, and efficiently operated institutions. Overall, the Korean economy was able to attain favorable performance because of well-designed planning, comprehensive implementation and assessment, and agile adjustments in response to changing economic conditions.
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