Author Description

The remarkable economic growth achieved by Japan and Korea makes analysis of the style of economic management practiced in each of special interest. Some similarities emerge, specifically a strong partnership between government and the private sector, an export-oriented development strategy, and emphasis on education and the development of skills. The policies differed in that government became the more senior partner and the apparatus of planning and policy making was more centralized and streamlined in Korea, and Korea relied much more on foreign trade. Although the experience of these two countries in general confirms that prices, markets, and outward orientation can play a significant part in economic development, their styles of economic management do not fall neatly into the conventional pigeonholes in economics. No definitive conclusions as to transferability of the Japanese and Korean techniques emerge, but some important inferences can be drawn from the experiences of Japan and Korea regarding the power of prices and role of competition, both internal and external.