The developing countries of today are promoting industrialization in order to achieve an increase in the speed of economic growth. This is because most of the developed countries achieved their success through industrialization. Compared with the econ...
The developing countries of today are promoting industrialization in order to achieve an increase in the speed of economic growth. This is because most of the developed countries achieved their success through industrialization. Compared with the economic history of the developed countries, it seems that the later the underdeveloped countries begin their economic growth, the faster the rate of economic growth they achieve through industrialization. The economic growth of Korea for example has reduced remarkably the time required historically by the developed countries for their economic growth. Gerschenkron's historical dynamic view holds that the reason underdeveloped countries speed of industrialization is faster than that of the developed countries is that the former emphasize the chemical heavy industry. Even though the process of development in today's developing countries is similar to that of the developed countries, there are some important differences. The opportunities for development today are enhanced by changes in the international econmic environment. Still not all of the devoloping countries have succeeded in achieving a desirable rate of economic growth through industrialization.
There has been very little analysis from the dynamic point of view of specific instances of success of failure in industrialization. This dissertation follows the method of comparing the progress of the structural pattern of international competitive power by analyzing the international industrial interdependence and the system of reciprocal trade.
This dissertation concludes by suggesting that some developing conturies have been successful in working out their industrialization and others have been less succesful. 0ther nation never throw off their colonial heritage, and so do not benefit from their backwardness, and never escape from the swamp of stagnation.
Despite the fact that Korea faces tightening forms of protectionism in trade and the supply of natural resources from the advanced countries, Korea could still continue her growth through the government's economic plans launched between 1962 to 1984, Korea showed an annual average growth rate of 8.2percent. Korea now stands in the group of newly industrialized countries. Korea's economy will be developed even more if the plan to expand the political and econmic ties among the Pacific basin nations materializes. However, trade competition will become keener between the newly industrialized nations, because these nations have all grown through similar economic measures.
Korea's rapid growth is attributable to the development of its export structure. However, the export of light goods remarkably decreased in 1980, while the export of heavy and chemical commodities increased during that same year. The growth rate of manufacturing firms shows that the manufacturers of heavy goods grew faster than manufacturers of light goods during the period from 1970 to 1980. In contrast, the import ratio of manufacturers decreased from 19.7percent in 1970 to 16.5percent in 1980. These changes result mainly from a change in government economic policies ; government in the past stressed simply the exported commodity itself.
Korea depended heavily upon labor-intensive economic systems until 1970. This economic structure contributed to the export of light goods, such as, clothes, shoes, electronic goods, machinery, and ship building. Cheap labor helped the sales of Korean-made goods, which were inexpensive on the international market. However, because many new developing countries, such as China, and other countries, also enjoy the advantage of cheap labor, the Korean economy these days is threatened more than ever. In the Korean economy "the expansion of exports once meant the expansion of imports" The ratio of imports to the GNP reached thirty to fifty percent. It is expect that from 1982 to 1990 the heavy equip-merit and machinery industry, the production of transportation machinery, electronic goods, electric appliances, and will grow two times as fast as any of those industries today. In fact, these industries so far have contributed the greatest proportion of exports and imports to the Korean economy.
Whether we succeed or fail in the international technological competition determines the future of our country. We will have to make every effort to secure a solid base of industrial technology in order to enter the group of advanced countries by the year 2,000.