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Thread on why India could not have emulated South Korea. First, the different colonial experiences. Japanese left Korea with a much higher level of literacy, better bureacracy, and better records. Korea economy also grew much more rapidly during Japanese occupation than India
....did during British occupation (Gupta). Land records were essential for the land reform that happened in Korea after 1945. Similar efforts in India were thwarted by lack of records and of course Indian legal system.
Literacy is of coure crucial for rapid industrialization.
Literacy is of coure crucial for rapid industrialization.
Second, Korea's export promotion got a major lift from the Japanese who were looking to outsource some of the low wage stuff as they climbed up the ladder (Chibber). The technology for POSCO also came from NIPPON steel. Without access to a readymade market, it is impossible
....for a poor country to spur export-led growth. Japan also helped Taiwan btw. In contrast, British and US firms wanted to produce in India for the Indian market. US aid often came with the rider that Indian firms would not compete in exports.
Third, When Park created the Economic Planning Board, he endowed it with much greater power--nodal authority--than India ever did for the Planning Commission. Power resided with the ministries.
Fourth, Park was through strong arm tactics able to get industrialists to agree to
Fourth, Park was through strong arm tactics able to get industrialists to agree to
...to his plan, including especially export targets. He jailed the top industrialists for a brief period. Are our Friedman worshipping desi RW ready to sign up for this? I guess not.
Fourth, the Vietnam War created large need for local supplies for the US Army, helping Korea.
Fourth, the Vietnam War created large need for local supplies for the US Army, helping Korea.
Fourth, strikes were put down ruthlessly in South korea. That would not have been possible in a democratic India. Ultimately, it took the Emergency to quell strikes.
Fifth, Korea is a homeogenous country--easier to get consensus.
Fifth, Korea is a homeogenous country--easier to get consensus.
