Korea's sudden economic growth is a 'classic example'

-Dr. Alex Taehwan Yoo, Research Fellow, Korea Institute for International Economic Policy, KIEP, Seoul

The Korea Institute for International Economic Policy, KIEP, is a government sponsored institution founded with a view to assist the administration in formulating international economic policies. It is one of the largest foundation in Korea that enjoys the talents of the crème-de la crème of Korean senior economists.

We at the KIEP focus on the formulation of foreign economic policies so that the government can proceed smoothly while negotiating with friendly countries on economic trade and commerce.

I am Alex Taehwan Yoo, a doctoral degree holder. Currently I am associated with this KIEP as a research fellow at the Center for Regional Economic Studies. My areas of interest take account of international economics, regional economic studies and monetary theory and banking. My association with the KIEP is just a year old.

I am the in charge of South Asian Economies including those of Nepal. However, since we do not have much material on Nepal so we know less about your country. It is only the unavailability of Nepalese research articles that makes us at the KIEP to think of other South Asian countries.

Let me brief you about the KIEP.

KIEP is comparatively a new experience in Korea and was founded in 1990 as a government-funded research institute. It is the world's leading institute on the international economy and its relationship with Korea. This is a sort of Think-Tank providing logical and scientific formulations to the government on international economic issues and trends.

KIEP has in its possession highly erudite economic research staffs. Now numbering over 100 plus, our staff includes research fellows with Ph.Ds in economics from international graduate programs, supported by more than 40 distinguished researchers..

We have four departments. Finance; Trade Policy; Regional Economic Study Centers and a Center that concentrates it efforts in studying the economies of nearby countries, for example, China, and Japan. We at the KIEP currently engaged in studying the economies of India, New Zealand and Australia. Only recently our President was in India wherein he discussed about the prospects of Korea entering into a Free Trade Agreement with that country. However, India appeared a bit reluctant in this regard for some unknown reasons. Still, the Korean side is meeting this December in India once again to talk on the same. However, let me tell you that India is one of the few countries in the world which keeps high tariff rates and has high trade barriers. Nevertheless, India is a prospective market for Korean goods. It is also a country that falls well with five top countries in the world politically and economically.

KIEP continually strives to increase its coverage and grasp of world economic events and expanding cooperative relations has been an important part of these efforts. Considering the rapidly changing economic landscape of Asia that is leading to a further integration of the world's economies, we at the KIEP are confident that our win-win proposal of greater cooperation and sharing of resources and facilities will increasingly become standard practice in the field of economic research.

I do agree that Korea has a low-priority for Nepal. It is because we lack adequate connections with that country, both politically and economically.

Talking of the Korean economy as it stands today let me confess it very frankly that the sudden growth of the Korean economy over the years is a classic example to be emulated by others. But then yet we claim ourselves a "developing" nation.

Korea began its economic journey from scratch. People had tough time. The governments formed in the past were not democratic ones. As if this were not enough, the businessmen too were not that honest as they should have been at the very beginning.

The secret behind miraculous and phenomenal economic growth in Korea is a combination of several factors. In my opinion, not necessarily others would agree, there should be a strong government at the center, which can control the skyrocketing aspirations of its citizens for a while until a growth is achieved. A sort of growth policy has got to be framed urgently by the state. Then gather capital and later devise good and effective strategies on which to proceed later.

Unless you provide power to the government, you can't achieve economic growth of a desired level.

In sum, it should be like this: empower the state; formulate right and effective economic policies; use these policies strongly without any let or hindrance. This could also be a suggestion for Nepal from my side.

If the policies begin showing positive results, provide facilities to the people as promised.

I frankly admit that the Korean regime under President Park Jung Hee was the most beneficial to the Korean economy and the Korean people reiterate this fact even today. Park's presidency very much resembles the regime of President Lee Kwan Yoo of Singapore. One has to at least acknowledge president Park's contributions. Let's forget the political aspects. Later, President Kim Young Sam improved the declining Korean political image, which got much better during the presidency of Kim Dae Jung. President Kim carried the country out of the financial crisis. He managed Korea to a safe landing indeed.

The incumbent President is trying his best to expand with what we have already accomplished in the economic sector.

Koreans might differ on political issues. However, we don't differ on bringing about further improvement in the country's economy. This is the Korean strength.

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