Han River miracle 1953-1980's

Question 1

4 Factors

Answer 1

Strong government
Human capital
Geopolitical factors
Industrial sector shift

Question 2

(5) Strong government (Made attractive for FDI)

Answer 2

Ended ISI policy
Low interest loans to exporting firms according to their export performance
Trade Union destruction kept Korean wages at 1/10 of US
Pursued minimal Japanese reparations in return for trade deals

Question 3

(2) Human Capital

Answer 3

Cheap labour provided comparative advantage

Strong emphasis on HC development, school enrolment up 1.4-2.2million

Question 4

(4) Geopolitical factors

Answer 4

Close relation with Asian tigers
US soldiers on NK border created stability and investor confidence
Park Chung Hee installed by west until 1979
US gave aid ($3bn during vietnam war)

Question 5

(2) Industrial sector shift

Answer 5

1st 5 year plan boosted energy output expanding PPF and lowered business costs
2nd 5 year plan set up heavy industry