Korea And Japan S Road To Modernization example essay topic

The Miraculous Modernizations in Korea and Japan Ever since Western powers first attempted to colonize virtually all of Asia, these eastern nations have struggled to become modernized and independent, with the exception of Japan and Korea. It can be safely assumed that both Korea and Japan suffered great destruction from World War II. For some years following Japan!'s defeat in World War II, the nation!'s economy was almost totally paralyzed from wartime destruction, with severe food shortages and rampant inflation. Similarly, Korea has had to endure the infamous Japanese occupation and the Korean War.

But it is not their wartime sufferings that define these countries; rather it is the astonishing rebound from their status as war-torn, impoverished countries to modernized nations. After World War II, both Korea and Japan defied the odds with resilience and rebounded to become developed nations. People in Japan set about rebuilding their war-devastated economy, initially assisted by aid from the United States. One of the main reasons why Japan became a developed country is Japan!'s highly controlled direction of its people. Japanese people worked well together and that contributed positively to the planning and administrative roles of the government. On the other hand, the rise of South Korea was one of the most unexpected developments of this past generation.

No one in 1945 could have predicted that Korea would become such an important global player in world economy in such a relatively short time. Like Japan, the Korean government played a huge role in transforming this once poor, agricultural country to an economic powerhouse. One should note that the changing roles of government in the economic Kim 2 development and several cultural factors of both countries played a big part in the modernization of these two nations. Japan is an island country, poorly endowed with natural resources and supporting a population of over 120 million within a relatively small area. Despite these restrictive conditions and the devastation of its manufacturing base during World War II, Japan has managed not only to rebuild its economy but to become one of the leading industrial nations in the world. According to a historian named Edwin Reischauer, Japan!'s government!

^0 targeted certain basic industries, such as shipbuilding, coal mining, and production of steel, electric power, fertilizers, and chemicals for initial concentration of investment and effort, and business cooperated smoothly with it! +/- (Reischauer 309). An important factor behind Japan!'s economic growth from the late 1950!'s through the 1960!'s was the availability of an abundant labor force with a high level of education. At the time, the government!'s economic policies aimed to encourage savings, stimulate investment, protect growth industries, and promote international trade.

The best example is the! ^010-year Income-Doubling Plan, ! +/- which was announced in 1960 to boost Japan!'s economy (Reischauer 312). As a result, between 1950 and 1970, the real growth rate of Japan's economy, adjusted for inflation, averaged a breathtaking 10 percent a year, almost three times that of the United States. Later during the 1970!'s, Japan faced some inflation crises that caused a sharp drop in economic growth. In the early 1980!'s, however, dramatic increases in private-sector capital investment and growth in export sales finally brought the economy out of long periods of recession. Kim 3 Now, one of the many factors for the postwar economic takeoff in Japan is Japan!'s improved international situation.

One such example was the peace treaty concluded in 1947, which! ^0 prohibited armaments! +/- (Jansen 457). This eliminated the need to have a large standing army. Japan, like Western Europe, was protected by the American armed forces and became free to concentrate on producing civilian, rather than military goods. During the Korean War, U.N. forces found it convenient to order all sorts of supplies from Japan.

The resulting demand for goods set Japan's economy off on a postwar boom that eventually left the rest of the world behind. In addition, because of the Cold War, ! ^0 the U.S. allowed Japan almost unlimited exports to the U.S.! +/- while Japan restricted import of U.S. goods until 1985, when the Japanese market was asked to be opened (Jansen 522). This was important to Japan!'s economic success.

Japan's phenomenal success in building ships, cars, electronic devices, and other high-tech goods combined with a modern educational system and national management of key aspects of the economy. As a result, the Japanese began to produce better goods at lower prices than anyone else. For this reason, Japan is ahead of the rest of the world in terms of economy. Furthermore, the Japanese government encouraged intense research and development and this led to rapid modernization in Japan. Japanese government agencies, such as! ^0 the Economic Planning Agency (EPA) and Ministry of International Trade and Industry (MITI), ! +/- were highly involved in economic planning (Reischauer 334).

The Bank of Japan and MITI encouraged liberal loans to companies with little demand for payment, leading to fierce competition among many companies. This drove research and development. In addition, the breakup of the! ^0 zaibatsu, ! +/- or large business trusts owned by Kim 4 families, and the emergence of the! ^0 keiretsu! +/- contributed to Japanese industrialization (Reischauer 306). The keiretsu is a conglomeration of businesses, with companies buying one another's stocks, and often preventing stocks from going public, which shields companies from the turmoil of the stock market and even immediate profit, so that companies could focus more on research and development and long term goals.

Also, formidable source of internal investment capital and effective cooperation and planning within conglomerates can be credited with the success of the keiretsu. Thus, because the government promoted research and development, Japan was able to achieve its status as a developed nation. Japan's astonishing economic surge also seems to have had deep roots in Japanese culture and national character. By the mid-nineteenth century, Japan was politically unified and culturally homogeneous. Japanese society put the needs of the group before those of the individual. This was the main reason why the Japanese government had the support of a sophisticated and disciplined people.

Moreover, big companies, and to a lesser extent small ones, traditionally hired workers for life immediately after they finished school. Employees were never fired and seldom laid off, and in return, they were expected to be loyal and obedient. The big companies'! ^0 promise of lifetime employment after 1960! +/- eliminated the need for unemployment benefits for many (Reischauer 323). Most unions were moderate, agreeable company unions based on cooperation and compromise. These cultural factors were very important in accounting for Japan's economic success.

Kim 5 Like Japan, Korea's successful economic growth in modern times has deep roots. In particular, the Confucian emphasis on education and discipline, the tradition of an industrious agricultural labor force, and the traditional innovative potential of the Korean people appear to have formed the foundation of Korea's recent economic advance. During the years of Japanese colonial rule in Korea, the Japanese government played an active role in developing Korea. The Japanese government! ^0 helped to mobilize resources for development and provided entrepreneurial leadership for these new enterprises in Korea! +/- (Hong 3).

Like Japan, Korea also recovered slowly from war devastation during the period from 1953 to 1961 with economic and military assistances from the United States. In 1961, by a military coup, General Park Chung-Hee became president and accelerated the building of a new economy. Park wanted to transform South Korea from a backward agricultural nation into a modern industrial nation that would provide a decent way of life for its citizens while at the same time defending itself from outside aggression. Park also saw that strong economic growth was crucial to his regime!'s legitimacy. Park!'s government benefited from the aid of the United States and used that to build an infrastructure that included a nationwide network of primary and secondary schools, modern roads, and a modern communications network.

As a result, by 1961, South Korea had a well-educated young work force and a modern infrastructure that provided Park with a solid foundation for economic growth. Since 1962, the Korean economy has grown faster than any other country. The 1960!'s and 1970!'s marked Korea's great leap toward a! ^0 semi-developed state, ! +/- and the 1970!'s and 1980!'s saw the transition from semi-development to economic maturity in Korea. Kim 6 Specifically, Korea's remarkable economic success of the last quarter century is often cited as a model of sound economic planning and effective cooperation between government and business. The Korean economy during the 1960!'s was!

^0 dominated by a group of Chae bol, large private conglomerates, and also was supported by a significant number of public corporations in such areas as iron and steel, utilities, and communications! +/- (Hong 4). The South Korean president during this period of economic growth, Park Chung-Hee, was the key player responsible for the modernization in Korea. He is one of the greatest figures in the long Korean history.! ^0 It was Park who inspired, bullied, beat, cajoled and enticed Koreans out of the paddy fields and into the forefront of the industrial world! +/- (Breen 134).

The Park administration had decided that the central government must play the key role in economic development and this decision has helped Korea to keep up with economic growth since the 1960!'s. President Park!'s first main goal was to establish a self-reliant industrial economy independent of the United States aid. This goal was successfully attained through his First Five-Year Economic Development Plan, which promoted rapid industrialization. Park went even farther by modernizing the economy and maintaining overall sustained growth during the 1970!'s. He also emphasized the need for close cooperation between government and private industry, extending government control over business by nationalizing the banks.

Perhaps the most important factor of Korean economic growth was the! ^0 government's will to transfer the labor force from latent unemployment to employment in the process of economic development! +/- (Hong 4). Park!'s government hoped that the well-educated and highly motivated labor force would produce low cost, high-quality goods that would find ready Kim 7 markets in the United States and the rest of the industrial world. Because South Korea was dependent on imports of raw materials, the government believed that increasing the level of exports was crucial. Therefore, the basic model of Korea!'s high economic growth, called as the!

^0 Miracle on the Han River, ! +/- is characterized as government-led, foreign capital-dependent, pro-industrialization and export-oriented. Cultural factors have been very important to Korea!'s economic development. During the economic modernization, Korean people!'s sense of value had improved and people took advantage of this factor. Their strong will was beneficial to the overall attitude of labor force. It is safe to say that Korea became more like Japan. They placed the interests of the group and nation before personal or family interests.

Koreans became increasingly obsessed with economic growth, and thus put less importance on the family and more importance on the nation and the corporation as a whole. In addition, Confucian values played an important part. In the course of Korea's economic development, education by the Confucian cultural basis has helped enhance the quality of the labor. Korean society has also been deeply influenced by the two countries with which it has been in close contact: Japan and the United States.

Japan!'s occupation strongly influenced modernization in Korea with transfer of capital and technology. The United States! economic and military assistances have been vital to the continued existence of Korea. All in all, these cultural factors have been crucial to economic development in Korea. Finally, Korea and Japan!'s road to modernization can be attributed primarily to the nature of their societies, their prewar economic experience, and the changing roles of Kim 8 governments.

Both nations have had strong political leaderships which ultimately led to their efficient economic development. Their governments introduced currency reforms and flexible economic planning and promoted industrialization and export-oriented economies. In addition, the high level of literacy among the people and the close cooperation between the government and private industry contributed positively to the modernization in the two countries. Therefore, political stability along with important cultural factors can be credited with the modernization of Korea and Japan.

Bibliography

Reischauer, Edwin O. The Japanese Today. Cambridge: 1995 Jansen, Marius B.
Making of Modern Japan. Cambridge: 2000 Breen, Michael.
The Koreans. New York: 1998 Hong, Seong Min.
0 Modernization and Economic Development in the Korean Economy.! +/- 24 Oct. 2002.