ABSTRACT
Chapter 4 reviews the state (autocratic)-led, export-oriented economic development known as “the miracle on the side of the Han River,” which transformed South Korea from a predominantly agrarian country into an industrialized nation. Though Park Chung Hee and his associates who assisted him in the development projects claim that “the miracle” was produced solely by their efforts – starting from nothing. There had been development efforts before which served as bases from which he began. US foreign aid played a crucial role in building a basis for the South Korean economy during the American Provisional government era and reconstructing the economy devastated by the Korean War. There were also some development projects undertaken with the aid money and help of American advisers in the Rhee period. A comprehensive development plan was made by the Chang Myŏn government, which the Park government subsequently adopted. The Park government, however, aggressively proceeded with three five-year economic development plans to arrange the basic ingredients for economic development – capital formation, technology transfer and development, mobilization of cheap, educated labour and efficient government bureaucracy. The personalistic leadership of Park and some corporate leaders also played a role in Korea’s economic development. What emerged at the end of the development era is a Korean-style, personalistic-capitalist economy which stands in contrast to an individualistic Anglo-Saxon one.
