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ECO501 - Development Economics Graded Discussion Board LAST DATE :Wednesday, August 08, 2018

The Case:

 

South Korea is one of the developing world’s great long-term success stories. In the mid-1950s, it was one of the poorest countries in the world. The country is now classified by the World Bank as a high income economy, with PPP income exceeding $27,000 in year 2008. Korean consumer electronics and other goods have become synonymous with high quality at reasonable prices. Exports, particularly manufactures in such key sectors as consumer electronics and motor vehicles and recently in high technology, have grown at an extraordinary rate in Korea. One apparent reason for South Korea’s remarkable industrial achievements is a national strategy that has favored the promotion of exports reflecting increasingly sophisticated skills and technology. Strong financial incentives for industrial firms to move up the ladder of skills and technology were built into most of its policies.

 

Requirement:

 

Being a student of development economics, you are required to read the case study entitled as “Trade, Capital Flows, and Development Strategy: South Korea" given in text book " Economic Development" by M. P. Todaro, at the end of Chapter # 13, Balance of Payments, Debt, Financial Crises, and Stabilization Policies. In its years of rapid catch-up, South Korea used at least 19 major types of export-promotion oriented industrial policy interventions. After reading this case study, discuss any five policy interventions.

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