SlideShare uma empresa Scribd logo
1 de 116
News topic
• http://world.kbs.co.kr/english/news/news_
  Ec_detail.htm?lang=e&id=Ec&No=91445&
  current_page=
• http://world.kbs.co.kr/english/news/news_
  Ec_detail.htm?lang=e&id=Ec&No=91416&
  current_page=2
• http://world.kbs.co.kr/english/news/news_
  Ec_detail.htm?lang=e&id=Ec&No=91474&
  current_page=
Trade trend
• http://stat.wto.org/CountryProfile/WSDBCo
  untryPFView.aspx?Country=KR&Languag
  e=F
Richard Bronk
•   US model
-   The liberal market approach
-   Anglo-Saxon countries
•   German model
-   So-called “co-ordinated” market economies
-   Sweden, Japan.
•   Hybrid systems: France, Korea(After 1997)
Michel Albert
•   Albert, Michel. (1991). Capitalisme contre capitalisme. Paris: Seuil
-   The Rhineland model (stakeholder economy)
-   American or Anglo-Saxon model (shareholder economy)
•   The Rhineland Model
-   A regulated market economy with a comprehensive system of
    social security.
-   Government, employers' organisations and labour unions consult
    each other on economic goals and on the policy instruments to be
    used.
-   In the Rhineland, therefore, the welfare state is combined with a
    so-called "consultation economy".
-   Harmony of interests.
-   The primary goal is not the maximisation of short-term profits for
    the benefit of the shareholders.
-   The main concern is a sustainable, stable and continuous economic
    growth and a high level of employment.
Michel Albert
• American or Anglo-Saxon model
• Shareholder economy.
• Maximizing short-term profits for those who invest.
• Less regulated than the Rhineland.
• Its focus is said to be not on any harmony of
  interests, but on competition and if necessary
  confrontation.
• Under the Anglo-Saxon type of capitalism
  individual responsibility plays a more important role
  than in the Rhineland, with its organized care and
  solidarity.
Different Institutions
• Relation between employees and
  employers
- Trade-Unions
- Employers’ Organizations
• Labor laws
Union Density
Culture’s consequences
Studies of Hofstede
      Hofstede, Geert (1982), Culture’s consequences, Sage Publications

 Countries        Power       Individualism Masculinity        Uncertainty
                 distance                                      Avoidance
West Africa         77              20              46              54
 Germany            35              67              66              65
 Denmark            18              74              16              23
    USA             40              91              62              46
  France            68              71              43              86
Great Britain       35              89              66              35
   Japan            54              46              95              92
   Korea            60              18              39              85
   The
                    38              80              14              53
Netherlands
  Russia            95              47              40              75
Divers styles of management
    Meier, Olivier (2006). Management interculturel, Paris:Dunod.
•   North American Model :
-   Important role of market competitiveness
-   Importance of individuals and contracts
-   Strong inequality
-   Low unemployment
-   Low union rate
-   Limited state intervention

•   Asian Model :
-   Different Cultures inside of Asian countries
-   Collective value
-   Solidarity
-   Consensus
-   Right and obligation between employees and employers
Divers styles of management
 Meier, Olivier (2006). Management interculturel, Paris:Dunod.

• European model
- French model :
  Strong Intervention of State, Importance of Hierarchy,
  Importance of big business,
  Conflict between employees and employers
  Elite bureaucracy
- German model :
  Importance of banks, Importance of small business, Strong
  vocational training, Strong labor-union, Co-management.
• African model :
  Family conception, Importance of hierarchy, Paternalist
  leadership
Selected Unemployment Rates
 January 2008 – January 2009
Unemployment rate
01 capitalism
01 capitalism
01 capitalism
01 capitalism
01 capitalism
Labor Productivity Growth, Selected OECD Countries,
1981–2006
01 capitalism
01 capitalism
Namdaemoon area 1890, 1930
Economic
                     Growth




                     Population

Economic Change
in Colonial Period

                     Industrial
                     Modernization
Wallerstein’s World system theory
                    (1974)




This division of labor refers to the forces and relations of
production of the world economy: one focusing on labor-
intensive, and the other on capital-intensive production.
Electricity cut off in May 14, 1948
•   Electricity Production 1,434,000kw
•   North Korea: 84%
•   South Korea: 16%
•   Almost of hydro electricity production equipments are
    located in North Korea
•   June 17, 1947: South and North Korea’s Electricity
    Agreement (4 million dollar value’s merchandise)
•   May 10, 1948: General Election in South Korea
-   Dang In Ri Thermal power station(1930): 22500kw
•   Floating Power Plant Ship – 20000kw (Incheon), 6500kw
    (Busan)
•   Lack of electricity: limited Electricity Distribution until
    1963
Soo Pung Dam (1930)
Electricity Substation
    in Gaeseong Industrial Complex
            (June 21, 2007)


                     Supply of South Korean
                     in Gaeseong Industrial
                     Complex (2005)
                     15000kw

100,000~200,000 kw
Destruction by Korean War
 South Korean Damage
  (86% of Korean GNP)
01 capitalism
01 capitalism
Economic Dependence on
            International Aid
• 70% of Korean Import from
  International Aid
• From 1948 to 1960, 17% of
  Korean GNP depended on
  International Aid
• US aid in Korea
- Total US aid in Korea
  5,434,000,000 US$
  (1946-1962) – the largest
  recipient of US aid
- Total US aid in the World
  97,675,000,000 US$
  (1946-1962)
Import substitution industrialization
• Source of capital: Korean Governmental sales of US aid
  goods – Source for 43.2% of Korean national budget
• Korea-US Combined Economic Board:
  Decision of the orientation of capital use
• “3 white industries”: Textile, Wheat and Sugar industries
• Interest rate lower than inflation rate
- Inflation rate: over than 20%
- Private financial market’s interest rate (사채): 20~25%
- Retail bank’s interest rate: 18.25%
- Korea Development Bank’s interest rate: 3~12%
• Consumer good industry
• Limited impact for the economic development
01 capitalism
High inflation
• Wholesale price index
- 1955: 100
- 1957: 170.3
- 1959: 183.3
• Low domestic savings rate
• 1953-1962: 1.4%
Economic difficulties before 1960’s
• Since financial support from United States
  shrank, economic depression deepened.
• Under the economic aid, Korea achieved
  yearly 3.8% economic growth.
• However, a rate of economic growth decreased
  to 1.9% in 1960’s and GNP was $80
Park, Chung-hee




http://www.youtube.com/watch?v=ZbmF4bt
DOz8
PARK, CHUNG HEE SYNDROM




Launched five-year plans for economic development
Launched Saemaeul (New Community) Movement
Built the Seoul-Busan expressway
Built an Integrated Steel Plant in Pohang

                                1962                  1979
 Average Economic
                                            9.1%
 growth rate
 World Rank in GDP             101th                  49th
 Export                    5,480 million $         15 billion $
PARK, CHUNG HEE SYNDROM


            WHY?
            Result of ironic situation in
            Korea. "Whether democracy
            brings home the rice?"


            Korea has become
            democratized and the current
            administration is of a
            democratic political faction,
            but the lives of everyday
            people are getting harder.
GDP (1960)

• Philippines:   $6,944,483,000.00

• South Korea: $3,892,272,000.00
South Korea (GPD per capita)
1969   $239.26
1968   $194.80
1967   $157.31
1966   $130.28
1965   $105.78
1964   $120.65
1963   $142.38
1962   $103.88
1961   $91.63
South Korea (GPD per capita)
1979   $1,746.75
1978   $1,382.93
1977   $1,041.58
1976   $824.45
1975   $608.24
1974   $555.67
1973   $403.46
1972   $322.71
1971   $302.21
1970   $278.82
South Korea (GPD per capita)
1989   $5,438.24
1988   $4,465.67
1987   $3,367.53
1986   $2,702.64
1985   $2,367.77
1984   $2,306.85
1983   $2,117.53
1982   $1,938.13
1981   $1,845.66
1980   $1,674.38
South Korea (GPD per capita)
1999   $9,554.43
1998   $7,462.84
1997   $11,234.77
1996   $12,249.18
1995   $11,467.81
1994   $9,525.44
1993   $8,219.91
1992   $7,555.28
1991   $7,122.71
1990   $6,153.10
South Korea (GPD per capita)
2006   $18,340.76
2005   $16,387.64
2004   $14,152.69
2003   $12,709.67
2002   $11,486.55
2001   $10,176.55
2000   $10,884.45
Jangchung Gymnastic Center (1963)
Industrialization
• The Economic Planning (established in 1961)
• Program of rapid industrialization based on
  exports
• First Five-Year Economic Development Plan
  (1962-66)
• Second (1967-71), third (1972-76), and fourth
  five-year economic development plan(1977-81)
• Exports also were encouraged by direct subsidies;
  all taxes and restrictions on the import of
  intermediate goods that were to be used to
  produce export products were removed.
First Five-Year Economic
            Development Plan

• Secured resources (Coal)
• Development of light industry
• Promotion of basic industries (electric product,
  textile)
• Increase of agricultural productivity
• Improvement of farm household income
First Five-Year Economic
              Development Plan
• Lack of Capital –
  Government also tried to develop the heavy
  industry. However, lack of capital is un obstacle.
• Low saving rate
• Government decreased the interest rate to stimulate
  investment. However, this policy caused the
  inflation.
• Due to lack of domestic capital, the capital resource for
  the economic development had to depend on foreign
  capital.
• In 1963, the government devaluated Korean currency
  and increased the interest rates.
• Korea joined GATT (1967)
Outcome of the first five-year
            economic development plan
                                                                           1962~66
                                 1962    1963    1964     1965    1966
                                                                          (Average)
              GDP                239      247     271     280      307
   A rate of Economic growth     4.1      9.3     8.9      8.1     11.9      8.52
    A rate of National Saving    0.8      7.0     6.5      5.8     10.5      6.1
          1st Industry           33.4    32.5     35.1    32.3     31.7      33.0
          2nd industry           21.7    23.0     22.3    24.8     25.7      23.5
          3rd industry           44.9    44.5     42.6    42.9     42.6      43.5
        Current Account         -292.0 -402.8 -221.0 -198.6 -250.6
             Export              54.8    86.8    119.1    175.1   253.7
             Import             421.8    560.3   405.0    450.0   673.0


Source : The Economic Planning Board, <Economic Policy in Development Era>, 1982
Second Five-Year Economic
           Development Plan

• Modernization of Industry
• Economic Independence
• Self-sufficiency of food, Increase of export,
  modernization of chemical and steel industry
• Expansion of Social overhead capital (SOC)
- Transportation, Harbor, Highways
President Park, Chung-hee’s visit in
       West Germany (1964)
German Autobahn
Construction of Highway
• Seoul-Busan Highway
• Commencement of
  construction: 1968
• Completion of
  construction: 1970
• Solution for
  transportation problems
• Fast connection with
  producers and
  customers.
01 capitalism
Opposite political party’s
demonstration against Highway
        construction
Highway

• U.S. Route 40 an east–west United States
  highway (1926)
• Germany: 7000km’s Highway construction
  (1930’s)
• First French Highway (1941)
• First French North-South Highway (1970)
Outcome of the second five-year
economic development plan (1967-71)
                           1967      1968     1969      1970      1971    1967~
         GDP                320      348       387       408      437
  A rate of Economic
        Growth              6.6      11.3      13.8      7.6      9.4       9.7

      Agriculture           37.5     34.2      33.2     30.4      28.8
     Mining and
manufacturing industries    15.1     16.7      17.5     19.5      20.9

         SCO                47.4     49.1      49.3     50.1      50.3
    Current Account        -191.9   -440.3    -548.6   -622.5    -847.5
        Export              335      486       658       882      1132
        Import              909      1322     1650      1804      2178


Source : The Economic Planning Board, <Economic Policy in Development Era>, 1982
Capital Resources
• Normalization of Korea-Japan relations: $800
  million loan from Japan
• Severe trade deficit with Japan
• Sending Korean troops to Vietnam: $200
  million loan for dispatch of troops
• Sending Korean miners (7936) and nurses
  (10723) to West Germany
• The conflict in Indochina stimulated economic
  growth
Problems
• Foreign Loan – $200 million dollars during the
  second five-year economic development plan
• Foreign investors enforced Park, Chung-hee
  administration to use their goods.
• Under this condition, it was very hard for
  Korean industries to develop themselves.
Problems
• In order to develop economy, technology and
  capital were indispensable.
• Foreign capital goods, raw materials, core
  components had to be bought.
• Korean industry produce its products with
  imported raw materials and Korean cheap
  labors.
• More export, More import!
Outcome of the third five-year
economic development plan (1972-76)

• Investing in steel, machinery, shipbuilding,
  electronics, chemicals
• Automobiles began to be exported to a few
  markets.
• The plan sought to better prepare South Korea
  for competition in the world market.
Pohang Iron and Steel Corporation
        (POSCO) - 1973
Production Global Ma
Global Rank                Company                   in 2005        rket       Country
                                                   (million tons) Share %
    1         Mittal (Baa3/BBB+)                       63         5.56       Netherlands
    2         Arcelor (Baa2/BBB)                       47         4.15       Luxembourg
    3         Nippon (A1/BBB)                          32         2.82          Japan
    4         Posco (A2/A-)                            31         2.74       South Korea
    5         JFE (Baa1/BBB)                           30         2.65          Japan
    6         Baosteel (BBB+)                          24         2.12          China
    7         US Steel (Baa1/BB)                       20         1.77       United States
    8         Corus (B1/B+)                             18         1.59     United Kingdom
    9         Riva                                      18         1.59           Italy
    10        Nucor (A1/A+)                             18         1.59      United States
    11        ThyssenKrupp (Baa2/BBB)                   17         1.50        Germany
    12        Tangshan                                  16         1.41          China
    13        Gerdau (Baa1/BB+)                         15         1.32          Brazil
    14        Severstal (B2/B+)                         14         1.24          Russia
    15        Evraz (B2/BB-)                            14         1.24          Russia
              Others                                   756        66.73
  Source:       Iron and Steel Statistics Bureau
01 capitalism
First Lady, Yuk, Young-Soo’s
 (Inauguration of first ship of
Hyundai Heavy Industry, 1974)
01 capitalism
Hyundai
Automobile’s first
     export
 (Pony model,
 Equator, 1976)
01 capitalism
Construction in Middle East
Hyundai Construction (Jubayl , Saudi Arabia)
          Contract was signed in 1976
930 million US$ - equivalent to ½ Korean Budget
01 capitalism
Side effects of growth-oriented
            economic strategy
• The situation began to deteriorate in 1978.
• The emphasis on exports had produced a shortage of
  domestic consumer goods
• It was exacerbated by the increasing demands created
  by rising wages and the advance in living standards.
• Price controls imposed on producers of consumer
  goods discouraged the manufacture of these goods.
• Meanwhile, the inflow of dollars rapidly expanded the
  money supply and inflation became a serious problem.
• According to a Bank of Korea report, consumer prices
  rose only 14.4 percent in 1978, but most observers
  agreed that the actual rate was near 30 percent.
Chun Doo Hwan
Chun Doo Hwan’s
policy of low-inflation
American Deficit (Billion US$)

                 1981    82    83      84


Budget Deficit   78.9   127.9 207.8 185.3


Trade Deficit    28.0   36.4   67.1   112.5
Plaza accord
• An agreement between the governments of France,
  West Germany, Japan, the United States, and the United
  Kingdom
• Depreciation of the U.S. dollar in relation to the
  Japanese yen and German Deutsche Mark by
  intervening in currency markets.
• The five governments signed the accord on September
  22, 1985 at the Plaza Hotel in New York City.
• The value of Korean currency, KRW(Won) was linked
  to the US $.
• Korean product’s price competitiveness
01 capitalism
Decrease of Oil price
KOREA               86   87   88    89 Total


Balance of current account   47   101 145    53   346


    Balance of Trade         43   75   113   43   274


   Current Price GDP         111 140 188 231 670
Seoul Olympic Games
• South Korea hosted the Asian games in 1986
  and the Olympic games in 1988
• Seoul, South Korea hosted the 6th Asian
  Games in 1970.
• Due to the economic and security difficulties,
  South Korea had to drop its bid.
• The 6th Asian Games were held from
  December 9, 1970 to December 20, 1970 in
  Bangkok, Thailand.
Bangkok Asian Games (1970)
Seoul Asian Games (1986)
Seoul Olympic Games (1988)
Seoul Olympic Games (1988)
http://www.youtube.com/watch?v=GwAqv9mzMbA

http://www.youtube.com/watch?v=eBN1S_EnVaY

http://tvpot.daum.net/clip/ClipView.do?cateid=16&clipid=9631393&q=&type=c
hal
01 capitalism
01 capitalism
01 capitalism
Labor productivity growth
                              85~89       89~97       98~01

  1person~9persons            14.08        7.55        6.89

        10~19                 12.73        8.45        8.55

        20~99                 12.44        8.87       12.07

      100~299                 11.58       10.64        9.33

More than 300 persons          8.92       11.25       12.74
    From the end of 1980’s, Capital intensive industry leads
    the Korean Economy
Asian Financial Crisis 1997
• The crisis started in Thailand with the financial
  collapse of the Thai baht.
• Facing to the attack on Thai Bath, Thai
  Government used almost of foreign reserve. It had
  to decide to abandon Peg System of Thai Bath to
  the USD.
• As the crisis spread, the local currencies
  experienced sharp depreciation of currency.
• Indonesia, South Korea and Thailand were the
  countries most affected by the crisis.
01 capitalism
01 capitalism
01 capitalism
01 capitalism
01 capitalism
IMF’s intervention
• On 3 December 1997, the Korean government
  signed the papers with the IMF that prescribe
  these basic guidelines for the 'revitalization' of the
  Korean economy.
- Guidelines on macroeconomic policies including
  monetary and fiscal policies
- 4 major sectors: financial sector, private sector,
  public sector and labor
- Liberalization policies on capital market,
  investment and trade.
Gold collection
01 capitalism
01 capitalism
01 capitalism
Change in GINI coefficient
01 capitalism
01 capitalism
01 capitalism
01 capitalism
01 capitalism
01 capitalism
01 capitalism
GDP (1960)

• Philippines:   $6,944,483,000.00

• South Korea: $3,892,272,000.00
South Korea (GPD per capita)
2006   $18,340.76
2005   $16,387.64
2004   $14,152.69
2003   $12,709.67
2002   $11,486.55
2001   $10,176.55
2000   $10,884.45
South Korea (GPD per capita)
1999   $9,554.43
1998   $7,462.84
1997   $11,234.77
1996   $12,249.18
1995   $11,467.81
1994   $9,525.44
1993   $8,219.91
1992   $7,555.28
1991   $7,122.71
1990   $6,153.10
South Korea (GPD per capita)
1989   $5,438.24
1988   $4,465.67
1987   $3,367.53
1986   $2,702.64
1985   $2,367.77
1984   $2,306.85
1983   $2,117.53
1982   $1,938.13
1981   $1,845.66
1980   $1,674.38
South Korea (GPD per capita)
1979   $1,746.75
1978   $1,382.93
1977   $1,041.58
1976   $824.45
1975   $608.24
1974   $555.67
1973   $403.46
1972   $322.71
1971   $302.21
1970   $278.82
South Korea (GPD per capita)
1969   $239.26
1968   $194.80
1967   $157.31
1966   $130.28
1965   $105.78
1964   $120.65
1963   $142.38
1962   $103.88
1961   $91.63
GDP per capita, 1990US$
01 capitalism

Mais conteúdo relacionado

Semelhante a 01 capitalism

Rethinking development theory - Insights from East Asia and Latin America
Rethinking development theory - Insights from East Asia and Latin AmericaRethinking development theory - Insights from East Asia and Latin America
Rethinking development theory - Insights from East Asia and Latin AmericaZelda Gin
 
China- the next super power
China- the next super powerChina- the next super power
China- the next super powerMohammedEmad1987
 
Economic laws and human action in a time of crisis
Economic laws and human action in a time of crisisEconomic laws and human action in a time of crisis
Economic laws and human action in a time of crisisAlan Freeman
 
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)Olivier Coispeau
 
Economics made Simple 2019 week 1 - Concepts and Irish Economic Development
Economics made Simple 2019 week 1 - Concepts and Irish Economic DevelopmentEconomics made Simple 2019 week 1 - Concepts and Irish Economic Development
Economics made Simple 2019 week 1 - Concepts and Irish Economic DevelopmentNevinInstitute
 
B416 evolution of global economies lecture 1
B416 evolution of global economies lecture 1B416 evolution of global economies lecture 1
B416 evolution of global economies lecture 1Pearson College London
 
The Kyoto Protocol Carbon Market: Reflections from Its Author
The Kyoto Protocol Carbon Market: Reflections from Its AuthorThe Kyoto Protocol Carbon Market: Reflections from Its Author
The Kyoto Protocol Carbon Market: Reflections from Its AuthorGraciela Chichilnisky
 
The clinical pathology - past present future and the emergence of AI.pptx
The clinical pathology - past present future and the emergence of AI.pptxThe clinical pathology - past present future and the emergence of AI.pptx
The clinical pathology - past present future and the emergence of AI.pptxShahidMahmood418384
 
Globalisation & The Eu
Globalisation & The EuGlobalisation & The Eu
Globalisation & The Euclemaitre
 

Semelhante a 01 capitalism (20)

South Korean Economy
South Korean EconomySouth Korean Economy
South Korean Economy
 
Xiaobo Zhang & Fatma Abdelazziz • 2017 IFPRI Egypt Seminar Series: Unleashing...
Xiaobo Zhang & Fatma Abdelazziz • 2017 IFPRI Egypt Seminar Series: Unleashing...Xiaobo Zhang & Fatma Abdelazziz • 2017 IFPRI Egypt Seminar Series: Unleashing...
Xiaobo Zhang & Fatma Abdelazziz • 2017 IFPRI Egypt Seminar Series: Unleashing...
 
Rethinking development theory - Insights from East Asia and Latin America
Rethinking development theory - Insights from East Asia and Latin AmericaRethinking development theory - Insights from East Asia and Latin America
Rethinking development theory - Insights from East Asia and Latin America
 
Germany
GermanyGermany
Germany
 
Globalization ch 1
Globalization ch 1Globalization ch 1
Globalization ch 1
 
China- the next super power
China- the next super powerChina- the next super power
China- the next super power
 
Economic laws and human action in a time of crisis
Economic laws and human action in a time of crisisEconomic laws and human action in a time of crisis
Economic laws and human action in a time of crisis
 
7 China
7 China7 China
7 China
 
Justin paper
Justin paperJustin paper
Justin paper
 
Keynote Address- Prof Robert Wade
Keynote Address- Prof Robert WadeKeynote Address- Prof Robert Wade
Keynote Address- Prof Robert Wade
 
South korea
South koreaSouth korea
South korea
 
Intro to ECON_Chapter 2.3
Intro to ECON_Chapter 2.3Intro to ECON_Chapter 2.3
Intro to ECON_Chapter 2.3
 
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)
Doing Business in Asia - PSL Paris Dauphine - Maverlinn (abstract)
 
Economics made Simple 2019 week 1 - Concepts and Irish Economic Development
Economics made Simple 2019 week 1 - Concepts and Irish Economic DevelopmentEconomics made Simple 2019 week 1 - Concepts and Irish Economic Development
Economics made Simple 2019 week 1 - Concepts and Irish Economic Development
 
B416 evolution of global economies lecture 1
B416 evolution of global economies lecture 1B416 evolution of global economies lecture 1
B416 evolution of global economies lecture 1
 
16.ppt
16.ppt16.ppt
16.ppt
 
The Kyoto Protocol Carbon Market: Reflections from Its Author
The Kyoto Protocol Carbon Market: Reflections from Its AuthorThe Kyoto Protocol Carbon Market: Reflections from Its Author
The Kyoto Protocol Carbon Market: Reflections from Its Author
 
The clinical pathology - past present future and the emergence of AI.pptx
The clinical pathology - past present future and the emergence of AI.pptxThe clinical pathology - past present future and the emergence of AI.pptx
The clinical pathology - past present future and the emergence of AI.pptx
 
Economics japan
Economics   japanEconomics   japan
Economics japan
 
Globalisation & The Eu
Globalisation & The EuGlobalisation & The Eu
Globalisation & The Eu
 

Último

Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17Celine George
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationMJDuyan
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxMYDA ANGELICA SUAN
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxEduSkills OECD
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 

Último (20)

Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive Education
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptx
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 

01 capitalism

  • 1. News topic • http://world.kbs.co.kr/english/news/news_ Ec_detail.htm?lang=e&id=Ec&No=91445& current_page= • http://world.kbs.co.kr/english/news/news_ Ec_detail.htm?lang=e&id=Ec&No=91416& current_page=2 • http://world.kbs.co.kr/english/news/news_ Ec_detail.htm?lang=e&id=Ec&No=91474& current_page=
  • 2. Trade trend • http://stat.wto.org/CountryProfile/WSDBCo untryPFView.aspx?Country=KR&Languag e=F
  • 3. Richard Bronk • US model - The liberal market approach - Anglo-Saxon countries • German model - So-called “co-ordinated” market economies - Sweden, Japan. • Hybrid systems: France, Korea(After 1997)
  • 4. Michel Albert • Albert, Michel. (1991). Capitalisme contre capitalisme. Paris: Seuil - The Rhineland model (stakeholder economy) - American or Anglo-Saxon model (shareholder economy) • The Rhineland Model - A regulated market economy with a comprehensive system of social security. - Government, employers' organisations and labour unions consult each other on economic goals and on the policy instruments to be used. - In the Rhineland, therefore, the welfare state is combined with a so-called "consultation economy". - Harmony of interests. - The primary goal is not the maximisation of short-term profits for the benefit of the shareholders. - The main concern is a sustainable, stable and continuous economic growth and a high level of employment.
  • 5. Michel Albert • American or Anglo-Saxon model • Shareholder economy. • Maximizing short-term profits for those who invest. • Less regulated than the Rhineland. • Its focus is said to be not on any harmony of interests, but on competition and if necessary confrontation. • Under the Anglo-Saxon type of capitalism individual responsibility plays a more important role than in the Rhineland, with its organized care and solidarity.
  • 6. Different Institutions • Relation between employees and employers - Trade-Unions - Employers’ Organizations • Labor laws
  • 9. Studies of Hofstede Hofstede, Geert (1982), Culture’s consequences, Sage Publications Countries Power Individualism Masculinity Uncertainty distance Avoidance West Africa 77 20 46 54 Germany 35 67 66 65 Denmark 18 74 16 23 USA 40 91 62 46 France 68 71 43 86 Great Britain 35 89 66 35 Japan 54 46 95 92 Korea 60 18 39 85 The 38 80 14 53 Netherlands Russia 95 47 40 75
  • 10. Divers styles of management Meier, Olivier (2006). Management interculturel, Paris:Dunod. • North American Model : - Important role of market competitiveness - Importance of individuals and contracts - Strong inequality - Low unemployment - Low union rate - Limited state intervention • Asian Model : - Different Cultures inside of Asian countries - Collective value - Solidarity - Consensus - Right and obligation between employees and employers
  • 11. Divers styles of management Meier, Olivier (2006). Management interculturel, Paris:Dunod. • European model - French model : Strong Intervention of State, Importance of Hierarchy, Importance of big business, Conflict between employees and employers Elite bureaucracy - German model : Importance of banks, Importance of small business, Strong vocational training, Strong labor-union, Co-management. • African model : Family conception, Importance of hierarchy, Paternalist leadership
  • 12. Selected Unemployment Rates January 2008 – January 2009
  • 19. Labor Productivity Growth, Selected OECD Countries, 1981–2006
  • 23. Economic Growth Population Economic Change in Colonial Period Industrial Modernization
  • 24. Wallerstein’s World system theory (1974) This division of labor refers to the forces and relations of production of the world economy: one focusing on labor- intensive, and the other on capital-intensive production.
  • 25. Electricity cut off in May 14, 1948 • Electricity Production 1,434,000kw • North Korea: 84% • South Korea: 16% • Almost of hydro electricity production equipments are located in North Korea • June 17, 1947: South and North Korea’s Electricity Agreement (4 million dollar value’s merchandise) • May 10, 1948: General Election in South Korea - Dang In Ri Thermal power station(1930): 22500kw • Floating Power Plant Ship – 20000kw (Incheon), 6500kw (Busan) • Lack of electricity: limited Electricity Distribution until 1963
  • 26. Soo Pung Dam (1930)
  • 27. Electricity Substation in Gaeseong Industrial Complex (June 21, 2007) Supply of South Korean in Gaeseong Industrial Complex (2005) 15000kw 100,000~200,000 kw
  • 28. Destruction by Korean War South Korean Damage (86% of Korean GNP)
  • 31. Economic Dependence on International Aid • 70% of Korean Import from International Aid • From 1948 to 1960, 17% of Korean GNP depended on International Aid • US aid in Korea - Total US aid in Korea 5,434,000,000 US$ (1946-1962) – the largest recipient of US aid - Total US aid in the World 97,675,000,000 US$ (1946-1962)
  • 32. Import substitution industrialization • Source of capital: Korean Governmental sales of US aid goods – Source for 43.2% of Korean national budget • Korea-US Combined Economic Board: Decision of the orientation of capital use • “3 white industries”: Textile, Wheat and Sugar industries • Interest rate lower than inflation rate - Inflation rate: over than 20% - Private financial market’s interest rate (사채): 20~25% - Retail bank’s interest rate: 18.25% - Korea Development Bank’s interest rate: 3~12% • Consumer good industry • Limited impact for the economic development
  • 34. High inflation • Wholesale price index - 1955: 100 - 1957: 170.3 - 1959: 183.3 • Low domestic savings rate • 1953-1962: 1.4%
  • 35. Economic difficulties before 1960’s • Since financial support from United States shrank, economic depression deepened. • Under the economic aid, Korea achieved yearly 3.8% economic growth. • However, a rate of economic growth decreased to 1.9% in 1960’s and GNP was $80
  • 37. PARK, CHUNG HEE SYNDROM Launched five-year plans for economic development Launched Saemaeul (New Community) Movement Built the Seoul-Busan expressway Built an Integrated Steel Plant in Pohang 1962 1979 Average Economic 9.1% growth rate World Rank in GDP 101th 49th Export 5,480 million $ 15 billion $
  • 38. PARK, CHUNG HEE SYNDROM WHY? Result of ironic situation in Korea. "Whether democracy brings home the rice?" Korea has become democratized and the current administration is of a democratic political faction, but the lives of everyday people are getting harder.
  • 39. GDP (1960) • Philippines: $6,944,483,000.00 • South Korea: $3,892,272,000.00
  • 40. South Korea (GPD per capita) 1969 $239.26 1968 $194.80 1967 $157.31 1966 $130.28 1965 $105.78 1964 $120.65 1963 $142.38 1962 $103.88 1961 $91.63
  • 41. South Korea (GPD per capita) 1979 $1,746.75 1978 $1,382.93 1977 $1,041.58 1976 $824.45 1975 $608.24 1974 $555.67 1973 $403.46 1972 $322.71 1971 $302.21 1970 $278.82
  • 42. South Korea (GPD per capita) 1989 $5,438.24 1988 $4,465.67 1987 $3,367.53 1986 $2,702.64 1985 $2,367.77 1984 $2,306.85 1983 $2,117.53 1982 $1,938.13 1981 $1,845.66 1980 $1,674.38
  • 43. South Korea (GPD per capita) 1999 $9,554.43 1998 $7,462.84 1997 $11,234.77 1996 $12,249.18 1995 $11,467.81 1994 $9,525.44 1993 $8,219.91 1992 $7,555.28 1991 $7,122.71 1990 $6,153.10
  • 44. South Korea (GPD per capita) 2006 $18,340.76 2005 $16,387.64 2004 $14,152.69 2003 $12,709.67 2002 $11,486.55 2001 $10,176.55 2000 $10,884.45
  • 46. Industrialization • The Economic Planning (established in 1961) • Program of rapid industrialization based on exports • First Five-Year Economic Development Plan (1962-66) • Second (1967-71), third (1972-76), and fourth five-year economic development plan(1977-81) • Exports also were encouraged by direct subsidies; all taxes and restrictions on the import of intermediate goods that were to be used to produce export products were removed.
  • 47. First Five-Year Economic Development Plan • Secured resources (Coal) • Development of light industry • Promotion of basic industries (electric product, textile) • Increase of agricultural productivity • Improvement of farm household income
  • 48. First Five-Year Economic Development Plan • Lack of Capital – Government also tried to develop the heavy industry. However, lack of capital is un obstacle. • Low saving rate • Government decreased the interest rate to stimulate investment. However, this policy caused the inflation. • Due to lack of domestic capital, the capital resource for the economic development had to depend on foreign capital. • In 1963, the government devaluated Korean currency and increased the interest rates. • Korea joined GATT (1967)
  • 49. Outcome of the first five-year economic development plan 1962~66 1962 1963 1964 1965 1966 (Average) GDP 239 247 271 280 307 A rate of Economic growth 4.1 9.3 8.9 8.1 11.9 8.52 A rate of National Saving 0.8 7.0 6.5 5.8 10.5 6.1 1st Industry 33.4 32.5 35.1 32.3 31.7 33.0 2nd industry 21.7 23.0 22.3 24.8 25.7 23.5 3rd industry 44.9 44.5 42.6 42.9 42.6 43.5 Current Account -292.0 -402.8 -221.0 -198.6 -250.6 Export 54.8 86.8 119.1 175.1 253.7 Import 421.8 560.3 405.0 450.0 673.0 Source : The Economic Planning Board, <Economic Policy in Development Era>, 1982
  • 50. Second Five-Year Economic Development Plan • Modernization of Industry • Economic Independence • Self-sufficiency of food, Increase of export, modernization of chemical and steel industry • Expansion of Social overhead capital (SOC) - Transportation, Harbor, Highways
  • 51. President Park, Chung-hee’s visit in West Germany (1964)
  • 53. Construction of Highway • Seoul-Busan Highway • Commencement of construction: 1968 • Completion of construction: 1970 • Solution for transportation problems • Fast connection with producers and customers.
  • 55. Opposite political party’s demonstration against Highway construction
  • 56. Highway • U.S. Route 40 an east–west United States highway (1926) • Germany: 7000km’s Highway construction (1930’s) • First French Highway (1941) • First French North-South Highway (1970)
  • 57. Outcome of the second five-year economic development plan (1967-71) 1967 1968 1969 1970 1971 1967~ GDP 320 348 387 408 437 A rate of Economic Growth 6.6 11.3 13.8 7.6 9.4 9.7 Agriculture 37.5 34.2 33.2 30.4 28.8 Mining and manufacturing industries 15.1 16.7 17.5 19.5 20.9 SCO 47.4 49.1 49.3 50.1 50.3 Current Account -191.9 -440.3 -548.6 -622.5 -847.5 Export 335 486 658 882 1132 Import 909 1322 1650 1804 2178 Source : The Economic Planning Board, <Economic Policy in Development Era>, 1982
  • 58. Capital Resources • Normalization of Korea-Japan relations: $800 million loan from Japan • Severe trade deficit with Japan • Sending Korean troops to Vietnam: $200 million loan for dispatch of troops • Sending Korean miners (7936) and nurses (10723) to West Germany • The conflict in Indochina stimulated economic growth
  • 59. Problems • Foreign Loan – $200 million dollars during the second five-year economic development plan • Foreign investors enforced Park, Chung-hee administration to use their goods. • Under this condition, it was very hard for Korean industries to develop themselves.
  • 60. Problems • In order to develop economy, technology and capital were indispensable. • Foreign capital goods, raw materials, core components had to be bought. • Korean industry produce its products with imported raw materials and Korean cheap labors. • More export, More import!
  • 61. Outcome of the third five-year economic development plan (1972-76) • Investing in steel, machinery, shipbuilding, electronics, chemicals • Automobiles began to be exported to a few markets. • The plan sought to better prepare South Korea for competition in the world market.
  • 62. Pohang Iron and Steel Corporation (POSCO) - 1973
  • 63. Production Global Ma Global Rank Company in 2005 rket Country (million tons) Share % 1 Mittal (Baa3/BBB+) 63 5.56 Netherlands 2 Arcelor (Baa2/BBB) 47 4.15 Luxembourg 3 Nippon (A1/BBB) 32 2.82 Japan 4 Posco (A2/A-) 31 2.74 South Korea 5 JFE (Baa1/BBB) 30 2.65 Japan 6 Baosteel (BBB+) 24 2.12 China 7 US Steel (Baa1/BB) 20 1.77 United States 8 Corus (B1/B+) 18 1.59 United Kingdom 9 Riva 18 1.59 Italy 10 Nucor (A1/A+) 18 1.59 United States 11 ThyssenKrupp (Baa2/BBB) 17 1.50 Germany 12 Tangshan 16 1.41 China 13 Gerdau (Baa1/BB+) 15 1.32 Brazil 14 Severstal (B2/B+) 14 1.24 Russia 15 Evraz (B2/BB-) 14 1.24 Russia Others 756 66.73 Source: Iron and Steel Statistics Bureau
  • 65. First Lady, Yuk, Young-Soo’s (Inauguration of first ship of Hyundai Heavy Industry, 1974)
  • 67. Hyundai Automobile’s first export (Pony model, Equator, 1976)
  • 70. Hyundai Construction (Jubayl , Saudi Arabia) Contract was signed in 1976 930 million US$ - equivalent to ½ Korean Budget
  • 72. Side effects of growth-oriented economic strategy • The situation began to deteriorate in 1978. • The emphasis on exports had produced a shortage of domestic consumer goods • It was exacerbated by the increasing demands created by rising wages and the advance in living standards. • Price controls imposed on producers of consumer goods discouraged the manufacture of these goods. • Meanwhile, the inflow of dollars rapidly expanded the money supply and inflation became a serious problem. • According to a Bank of Korea report, consumer prices rose only 14.4 percent in 1978, but most observers agreed that the actual rate was near 30 percent.
  • 74. Chun Doo Hwan’s policy of low-inflation
  • 75. American Deficit (Billion US$) 1981 82 83 84 Budget Deficit 78.9 127.9 207.8 185.3 Trade Deficit 28.0 36.4 67.1 112.5
  • 76. Plaza accord • An agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom • Depreciation of the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. • The five governments signed the accord on September 22, 1985 at the Plaza Hotel in New York City. • The value of Korean currency, KRW(Won) was linked to the US $. • Korean product’s price competitiveness
  • 79. KOREA 86 87 88 89 Total Balance of current account 47 101 145 53 346 Balance of Trade 43 75 113 43 274 Current Price GDP 111 140 188 231 670
  • 80. Seoul Olympic Games • South Korea hosted the Asian games in 1986 and the Olympic games in 1988 • Seoul, South Korea hosted the 6th Asian Games in 1970. • Due to the economic and security difficulties, South Korea had to drop its bid. • The 6th Asian Games were held from December 9, 1970 to December 20, 1970 in Bangkok, Thailand.
  • 89. Labor productivity growth 85~89 89~97 98~01 1person~9persons 14.08 7.55 6.89 10~19 12.73 8.45 8.55 20~99 12.44 8.87 12.07 100~299 11.58 10.64 9.33 More than 300 persons 8.92 11.25 12.74 From the end of 1980’s, Capital intensive industry leads the Korean Economy
  • 90. Asian Financial Crisis 1997 • The crisis started in Thailand with the financial collapse of the Thai baht. • Facing to the attack on Thai Bath, Thai Government used almost of foreign reserve. It had to decide to abandon Peg System of Thai Bath to the USD. • As the crisis spread, the local currencies experienced sharp depreciation of currency. • Indonesia, South Korea and Thailand were the countries most affected by the crisis.
  • 96. IMF’s intervention • On 3 December 1997, the Korean government signed the papers with the IMF that prescribe these basic guidelines for the 'revitalization' of the Korean economy. - Guidelines on macroeconomic policies including monetary and fiscal policies - 4 major sectors: financial sector, private sector, public sector and labor - Liberalization policies on capital market, investment and trade.
  • 101. Change in GINI coefficient
  • 109. GDP (1960) • Philippines: $6,944,483,000.00 • South Korea: $3,892,272,000.00
  • 110. South Korea (GPD per capita) 2006 $18,340.76 2005 $16,387.64 2004 $14,152.69 2003 $12,709.67 2002 $11,486.55 2001 $10,176.55 2000 $10,884.45
  • 111. South Korea (GPD per capita) 1999 $9,554.43 1998 $7,462.84 1997 $11,234.77 1996 $12,249.18 1995 $11,467.81 1994 $9,525.44 1993 $8,219.91 1992 $7,555.28 1991 $7,122.71 1990 $6,153.10
  • 112. South Korea (GPD per capita) 1989 $5,438.24 1988 $4,465.67 1987 $3,367.53 1986 $2,702.64 1985 $2,367.77 1984 $2,306.85 1983 $2,117.53 1982 $1,938.13 1981 $1,845.66 1980 $1,674.38
  • 113. South Korea (GPD per capita) 1979 $1,746.75 1978 $1,382.93 1977 $1,041.58 1976 $824.45 1975 $608.24 1974 $555.67 1973 $403.46 1972 $322.71 1971 $302.21 1970 $278.82
  • 114. South Korea (GPD per capita) 1969 $239.26 1968 $194.80 1967 $157.31 1966 $130.28 1965 $105.78 1964 $120.65 1963 $142.38 1962 $103.88 1961 $91.63
  • 115. GDP per capita, 1990US$