ABSTRACT
The focus of this chapter is on foreign assistance, especially from the U.S., and economic development in South Korea. We explain how foreign aid, the role of government ownership, and commitment contributed to economic development in South Korea. In South Korea, foreign aid was employed successfully, despite various national challenges, to support state-led development projects, which spurred economic development. With a focus on the politics of foreign aid, we document, analyze, and explain how South Korea effectively utilized foreign aid to transform itself from a low to a high-income economy within one generation. The case of South Korea demonstrates how various domestic and international contextual factors intersect with strong government commitment and policy ownership as critical factors for the effective utilization of foreign aid for development in contrast to low-income economies such as Ghana, Nigeria, Zambia, and Myanmar where foreign aid has largely failed as a catalyst for economic development.
