1. Land reform redistributed land to the poorest peasants and landless workers.
2. Literacy rose from 30% to 80% between 1953 and 1963. Universal primary education was achieved by 1960.
3. Korea shifted from import substitution to export promotion of manufactured products without abandoning a selective import substitution policy.
4. The government used public enterprises to establish or strengthen capacity in some sectors especially in capital goods. The government encouraged the giant conglomerates to achieve economies of scale, promote research and development and pioneer cutting age technology.
5. There was relatively little foreign investment.
6. Gradually the government began to liberalize imports and reduce some of the incentives and subsidies to the export sector.
7. Rapid economic growth was achieved thanks to intelligent and independent policy and timely changes in emphasis of protectionism and liberalization. GDP grew between 9% and 10% for three decades since the 1960s.
8. The domestic savings rose from 13% in 1952 to 35% in the 1990s.
9. Between 1960 and 2000 the standards of living rose from subsistence to the level of industrial countries. The country continues to enjoy even income distribution.
10. Korea went from aid to export promotion through import substitution (Richard Jolly et al 2004).
You can see that the state has played a pivotal role in the economic development process.
Is this what is happening or has happened in your country?
