Five Year Plans for Economic Development

Topics: South Korea, Park Chung-hee, Economic development Pages: 6 (2038 words) Published: June 11, 2013
Five year Plans for Economic Development

After the 6.25 war, most of all production institution was in ruin condition, so the South Korea economic had to start off with a clean state. In 1950s, Korea could survive based on U.S.A’s support, but when the international balance of payments and the budget deficit expanded, U.S.A had to announce to Korea that they will reduce the amounts of the support. For this reason, the president of South Korea, Park Jung Hee, who seized the power through staging a coup strongly, claimed that development of Korea economy is the most important point. In brief, he was the president for 16 years in South Korea. The president Park Jung Hee propelled Five year Plans for Economic Development to secure the legitimacy of South Korea. The Five year Plans for Economic Development contributes to development and urbanization of South Korea. However, it not only brought positive points to South Korea, but also brought lots of negative points which affected to Korean economy.

The Five year Plans for Economic Development was a successful project. Through this project, the GNP which was below one hundred dollar in 1961 rose up to ten thousand dollar Sang 2
in 1995. After the World War 2, even though many countries made an effort to get out from the colony and the condition of the underdevelopment, there were no countries that made a remarkable growth of industry such as South Korea.

There are main factors why Five year Plans for Economic Development was successful project. Lots of politicians of South Korea, including the president Park Jung Hee, contributed to the economic growth with their strong will and they developed the potential powers of citizens. Although Park Jung Hee did cruel actions and oppressed the masses by force of arms, he could strongly carry forward an economy policy based on the political stability. It was possible to control the disturbance and confusion through the division of vice-premier called the Economic Planning Board. They established countermeasures, coordinated a policy, and reduced harmful consequences of foreign capital influx. Especially, they could control the all government department and have an important bearing on the whole situation through distribute foreign capital. The government controlled the rate of economic growth, plan of saving-investment, plan of foreign procurement, and investigated down to the minutest details.

The Five year Plans for Economic Development made important goals each moment, and sends a signal to the members of society, government official bureaucracies, and companies how they should act. At the first plan, the major project was to increase productive capacity of agriculture, expand the source of supply of electricity and coal, expand the basic industries, improve the international balance of payment through export, and promote the technology. Also,

Sang 3
The government made an investment at the part of oil, fertilizer, and electronic machine. Even though it was hard to make an investment because of the finance of the beginning time, through the successful achievement in Korean-Japanese conference and making an investment at the part of oil, fertilizer, and electronic machine, South Korea entered to orbit of high growth. The average annual growth rate rose up 7.1% to 8.5% and the per capita national income also rose up 83dollars to 123 dollars. [출처] 선진국이 되기 위한 한국형 모델(6): 경제개발 5개년계획|작성자 이어도지기 At the secondary plan, the Five year Plans for Economic Development suggested to export seven hundred million dollars, expedite the substitution of import, support food stuffs, keep the forests green, develop the ocean agriculture, plan parenthood, and develop human resources. At this moment the averages annual growth rate rose up to 10.5% which shows that South Korea obviously entered to orbit of rapid growth. At the third plan, the major project of the moment was rapid growth, industrialization of heavy chemical industry. Also,...

References: S
YOUNG JOON KIM, THE KOREA BRAND. “HAVE U EVER HEARD ABOUT FIVE YEAR PLANS FOR ECONOMIC DEVELOPMENT?” WEB. JANUARY 01. 2011
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