October 25, 2012 A Constructive Partnership The World Bank and Korea
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Transcript of October 25, 2012 A Constructive Partnership The World Bank and Korea
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October 25, 2012
A Constructive Partnership The World Bank and Korea
in the Early Stage of Korea's Economic Takeoff: Preliminary Findings
Giovanni Zanalda(Duke University)
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The post-1960 Republic of Korea (Korea) economic growth is one of the most successful examples of economic development in a relatively short period of time
Source: Grilli (2006)
China, 1977-87
Korea, 1966-77
Brazil, 1961-79
Turkey, 1857-77
Japan, 1885-1919
United States, 1839-86
United Kingdom, 1780-1838
0 10 20 30 40 50 60
Doubling per capita income in a sample of countries
Years
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…and continued to be successful
Middle-Income Trap
Source: Spence (2011)
Convergence
Source: OECD (2012)
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Paradigmatic nature of Korea’s development.Michael Spence (2011) taxonomy
• High level of overall saving and investment
• Effective government that supports and complements the private sector dynamics
• Structural change and economic diversification
• Effective leadership
• Ability to take advantage of global economy
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We concentrate on the 1960s - early 1970s
• Initial stage of economic development: the take-off
• Scholars have been debating about factors behind Korea’s growth during the 1960s and 1970s
• The role of the World Bank: a first assessment in Mahn-Je Kim (1997) [The World Bank. Its First Half Century]
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My analysis based on World Bank archives documentation
• What is the value added of these documents?• Sources and their limits
• Assessing Korea’s development and World Bank’s role as a lender and advisor
• Lessons to inform development policy
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Preliminary Findings• Switching from skepticism to confidence
• Building of trust among WB and Korean officials• Personal relationships• Training• Missions
• WB role as advisor on technical aspects and strategies• The first two Five-Year Development Plans• Building institutions
• WB role as advisor on international issues• Markets• Donors• Geopolitical issues
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Preliminary lessons
• WB documents bring to light: – A very composite history of the beginning of Korean development
– The role of intangible assets: transfer of skills and know-how between WB and Korea
– The WB as repository of knowledge: applying lessons across countries
– The personal and often casual dimension of development: agents, decision making, and policies
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Letter January 10, 1968 Deputy Prime Minister Minister of Economic Planning Board, Choong Hoon Park
to IBRD President, George Woods
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Letter May 3, 1968
President Park Chung Hee to IBRD President, Robert McNamara
Letter June 5, 1968IBRD President, Robert McNamara to President Park
Chung Hee