Development of industrial policy in South Korea: The case of from rags to riches with lessons for newly emerging nations

Abstract

How do you turn poverty into prosperity in a developing nation? The post-Korean War miracle in S. Korea is analysed from the historical perspective of industrial policy development. Updating from my earlier work on the role of private sector under authoritarian capitalism (1962-1980), this study extends to its role in democracy after 1981 under liberal capitalism. The Korean-style industrial policy started from government-steered market economy ending in private-sector based, open market economy. It concludes with useful lessons for other developing countries.