Becoming an economic powerhouse- Seoul, Korea

Friday- June 29th, 2012

Today's lecture theme is based on understanding Korea's economy on a Macro level. Each lecturer began with 1945 (end of WWII) which was the point when Korea gained freedom from Japanese colonization and traced growth to 2012. It's very apparent that Korea has industrialized and grown at rapid rate. Historically by far Korea has achieved industrialization and leading nation status faster than other developed nations! I couldn't help but wonder how did they do this? Are Koreans smarter? harder workers? or is there something else? Of course the lecturers clearly outlined the complex macro goals and strategies that were utilized by policy makers. However, it seems to me that there is something else greater at work, perhaps collective norms and values have a greater influence than most people are suspect. The collective mentality of "us" rather than "me" and the emphasis on filial piety (respect and honor for family. understanding one's role in society) creates an environment that supports a unified vision for what is acceptable and good for one's self, family and society. It's this unified vision that keeps the people focused and as a result growth was seen and is maintained. Everyone knows that it is much easier when you're working together. Just like on any small or large project or goal when two or more are at work without a unified vision and goal, the project or goal is very difficult to accomplish. So what can we learn from the Korean's... understand respect, know your role in the home and outside the home. Most important work together and remember that with a collective norm set and vision success will occur!

After another long day at the Korea University (see condensed notes below for more lecture information), we set off to the National Museum. I absolutely loved the museum. Our tour guide was fabulous and gave such a upbeat presentation on 15 impressive artifacts. For more information on the museum check out the website

http://www.museum.go.kr/main/index/index001.jsp

Then after the museum a few of us ladies went in search of a highly recommended Korean restaurant- Tosokchon The menu is simple chicken ginseng soup or rotisserie chicken. We got the soup and it was just as good as the review and recommendations promised. The setting was very traditional and we got there and ate in perfect time because when we left, the line was beginning to form.

Daily Notes:
Lecture One: Korean Economy

Korean Key Milestones of Economic Development
1960s Light and labor intensive industry promotion (export) and import protection.
1970s Heavy and chemical industry promotion.
1980s Liberalization and privatization
1990s Globalization and deregulation
1997 Crisis and Reforms (regionalization)

Economic Development
How do resource poor countries industrialize? Develop labor intensive industries like textiles, increase productivity and export, import capital equipment, invest in infrastructure, expand exports and earn foreign exchange, import capital goods.
What are the sources of growth? Export oriented economic policy, savings policies, family planning, education policies, adequate accumulation of human capital (eduction), adequate accumulation of physical capital (domestic savings, foreign aid, foreign loans).
Economy grew rapidly over time!

Prospect
Currently the expectation is to maintain, but progress will be much slower than in the past.

Lecture Two: Korean Society: National Projects and Revolving Axes

National Projects

Economic Development- Capitalism (yes)
Political Democratization- Democracy (yes)
National Unification- Unified Korea (not yet)

Korea grew and developed to a great power in a very short period of time. In 2012 Korea joined the 20-50 club- countries with per capital income of exceeding $20,000 with 50 million population. Korea is now ranked 7th in this group. This demonstrates it's success and economic growth.

Multiple front of social change
population dynamics- 1960 - 6.2, 2010- 1.22 --drastic drop in fertility. What are the reasons behind this? increased longevity, aspiration of advancement for families.
education dynamics- increasing education demands for children and a majority of Korean students go to University. Pro- highly educated citizen base, Con- demand for lower level positions because most students are overqualified. Over 400 higher education institutions in South Korea.
religion dynamics- Religious affiliations has grown over time.

Lecture Three: South- North Korean Relations

How to deal with North Korea
There are many ways that nations are trying to get N. Korea to de-nuclearize. For example many nations including S. Korea have promised financial support.


II. How to deal with North Korean Nuclear Problem
Many nations are in agreement on how to deal with North Korea and are placing financial and human rights pressure on North Korean regime. Currently N. Korea is put under US Sanctions (can not buy luxury goods). North Korea has been successful in hiding nuclear weapons. As a result S. Korea is prepared for a war if the North attacked, but will not initiate because they are a peaceful country and will show honor to the armistice. A formal peace treaty was not signed only an armistice which is just an agreement to stop fighting.

III. Implications for ROK-US Alliance
The alliance started when the cold war began and has continued during the post cold war. However their are some challenges that include: Korean nationalism and anti-American sentiment, policy and perception over how to deal with North Korea, US uncertainties about traditional allies, and growing influence of China on the Korean peninsula. The vision of the alliance is maintaing status quo, creating a strategic partnership, alliance and security cooperation based on shared values, trust and desire for peace.