Korea 2

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substitution strategies towards export orientated industrialisation, and the effective managing of the economy and authoritarian rule adopted by the government in order to accelerate the pace of capital accumulation, technical progress and structural change to produce economic growth beyond what could possibly occur in a free market economy.

NIEs, South Korea, are now recognised as ‘export machines’ boasting some of the highest trade/GDP ratios in the world. International economic relations began in 1964 with the recognition of these limitation of the domestic market and the ineffectiveness of pursuing substitution industrialisation strategies. As part of its new strategy for export expansion the South Korean government introduced new measures which included the devaluation of the won, which improved the competitiveness of its exports and introduced incentives designed to channel resources into export-orientated industries. Exporters were also supported by direct cash payments, ...

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driven by capital stock accumulation and expanded productive capacity. Indeed some figures show up to 60% of economic expansion in South Korea is a result of capital accumulation and increase infrastructure.

Undoubtedly one of the most important rationalisations for economic success is effective government intervention. Selective government intervention has promoted the development of new industries, many of which have become internationally competitive and also supported and advanced the growth of the private sector. The main aim of the government in South Korea has been to ensure that the behaviour of individual business accorded with the long term interest of the business class ...

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