South Korean miracle
South Korea is the fastest growing economy , has earned a name for itself as the “Asian power house".We know South Korea has experienced one of the largest economic transformations of the past 60 years.
After the Korean war(1950), South Korea was one of the world's poorest countries with only $64 per capita income...but In 1980 it was $2,300, and 2010 it was $30,000 almost 30th times increase GDP between 1980-2010. The whole country's GDP increased from $88 billion to $1,460 billion(1980-2010) ,almost 18 times .
Important Factors in South Korea’s Economic Success .
1. export-oriented policies and industrialization of South Korea are one of the most important factors of its success: South Korea is now one of the top 5 exporters in the world, total export worth $600 billion out of $1655 billion GDP.....while India's total export worth $ 350 billion out of $3000 billion GDP.
2.Business Environment and Innovation -another key factors in South Korea’s Economic Success . According to the World Bank, South Korea is ranked No. 4 in terms of the overall Ease of Doing Business (DB) index in 2018.
South Korea is now spending the largest share of its GDP on research and development (R&D), even larger than the U.S. and Japan.
Between 1996 and 2015, South Korea’s R&D expenditure as a share of GDP grew 128% (from 2.2% in 1996 to 5% in 2016), while the U.S.’s only grew 16% (from 2.5% in 1996 to 2.7% in 2016).
In the coming years South Korea could see 8-9% growth and could reach $4 trillion mark by 2025.....GDP per capita could reach $ 70,000 by 2025 from existing $32,000....Export Economy could reach $ 1500 billion Mark.
