South Korea can be an Economy Model for Developing Countries: A Study

Abstract

The Four Asian Tigers includes the economies of Singapore, Hong Kong, South Korea and Taiwan. These are the countries that witnessed rapid industrialization and high growth rates between the early 1960s and 1990s.The growth rate was so exorbitant that it was excess of 7 percent each year. By the early 21st century, all four had developed into high-income economies and became specialist in having competitive advantage. Hong Kong and Singapore wildly become known for world-leading international financial centres whereas South Korea and Taiwan became world leaders in manufacturing electronic components and devices. Their economic success stories thus served as role models for many developing countries, especially the Tiger Cub Economies (developing countries in Southeast Asia, Including Indonesia, Malaysia, Philippines, Thailand and Vietnam) of Southeast Asia. This study reviews exclusively the growth model of South Korea and investigates their relevance and applicability to other developing economies. The period (1961-1997) of transformation of South Korea from a developing country to a developed one is referred to as “Miracle on Han River”. This paper will discuss and throw light on various aspects of the Miracle period and how the Korean response can be a study model for other developing countries.