The South Korean economic development experience: smart cities, green growth, public toilets, land and capital markets. Grigory Gerasimov
government stayed at the end of the finish line to find out who is the fastest runner. Government picked 2 or 3 of the best and let them to jump on the podium and then they extend their hands to help others 7 people to jump. It was a Korean model. If a government tries to develop all industries in the same time, no industry could be developed. The government should understand which is the most promising industry and is there a big linkage effect? Linkage effect means that if country will develop steel industry, it also will benefit to automobile and ship-building, because it provides import. This is forward linkage effect It’s also benefit to refined oil industry in order to melt metal ion oil is necessary. And this is backward linkage effect. This is how the top 3 people on the podium extend their hands to the others members. In 1970s the Korean selection were chemical (refined oil), steel, automobile, ship-building and electronics industries. Some people think that these 5 industries were very promotional for Korea, but in fact Korea was not ready for these five industries. Because these requires heavy investments, technologies, which Korea didn’t have at that time. World Bank even advised to stop Korean government and consider to focus on other industries like leather industry or shoemaking. However, government understand that Korea must be prepared for advanced industry and for the future. And Korea made a right choice: all these industries are within top in the world. In global standing (in terms of market share) Korea is a second after China in a ship-building, electronics (LCD and cellular phones) is 1, automobile, steel and ethylene (major product of chemical industry) all are numbered 5. However, ship-building and steel industries have some problems nowadays, but Korea is flexible and definitely will restructure these industries. At least for the last 40 years, those 5 industries had been a backbone of Korea economy. Korean economic growth can be explained by export. These industries are taking 70% of Korea’s export now. In 2011 top10 Korean companies were all from those 5 industries. Automobile: Hyundai Motors (ranked 2), Kia Motors (ranked 6), Mobis (ranked 7). Steel: POSCO (ranked 3). Ship-building: Hyundai Heavy Industries (ranked 4). Electronics: Samsung Electronics (ranked 1), LG Display (ranked 9), Hynix (ranked 10). Chemicals: SK Innovation (5), LG Chem (8). Literally all these industries are feeding other Korean industries. Government should make a decision right now, which industries will be beneficial for them 30 years later. Why the market can not decide it and government should intervene? In some African and Latin American Countries economy is already controlled by strong and traditional players (sugarcane, coffee and fruit producers) and they don’t want to observe other industries in order to have competitors. Traditional indutsries are already supported by the government and very comfortable with such a situation, which they don’t want to change. Civil servants, businessmans and even some scholars in those countries are all in the same league, that’s a reason they want to continue to promote existing and traditional industries, instead of looking for advanced industries. Probably, in developing countries market is not able to create a new advanced industry. Thus and so, government should come in. There are many other reasons government should step in: new industry needs a support from government to coordinate with other industries, it needs a coordination by government for infrastructure, electricity and transportation, if the industry has a high uncertainity and risk, it may need an initial protection and support by the government.
Конец ознакомительного фрагмента.
Текст предоставлен ООО «ЛитРес».
Прочитайте эту книгу целиком, купив полную легальную версию на ЛитРес.
Безопасно оплатить книгу можно банковской картой Visa, MasterCard, Maestro, со счета мобильного телефона, с платежного терминала, в салоне МТС или Связной, через PayPal, WebMoney, Яндекс.Деньги, QIWI Кошелек, бонусными картами или другим удобным Вам способом.