S. Korea Falls in GDP Ranking
by Richardson ~ July 31st, 2007. Filed under: Asia, Economics, Korean Culture.The left-wing government of President Roh has waged war on “the rich” in South Korea; the result is rather predictable:
South Korea slipped in the global gross domestic product (GDP) rankings last year. It is now the 13th largest economy after Russia and India as of 2006, falling one notch from a year earlier.According to World Bank statistics, Korea’s GDP totaled $888 billion as of 2006, ranking 13th among the 183 countries surveyed. It has kept sliding in the rankings, from 11th in 2002 to 12th in 2004 and 13th in 2006. It fell one step down to 12th from 11th in terms of total gross national income (GNI) as well, with the GNI totaling $857 billion.
Some of this can be attributed to the economic surge of oil-rich Russia and the growth of India. But the real reason seems to be Korea itself:
Economists attribute the fall to the low economic growth rate. Korea recorded 3.1 percent GDP growth rate in 2003, falling below the average world GDP growth rate for the first time. It has continued to fall short of the world average since then. Korea’s GDP grew by 5 percent last year, for example, 0.5 percentage points lower than the global average growth rate of 5.5 percent.
Should Lee Myung-Bak become president this year, I expect the war on the rich to end, and a more business-friendly climate should return.
July 31st, 2007 at 7:38 am
The loss in GDP may also be attributed to the crackdown on prostitution.
July 31st, 2007 at 1:56 pm
It will James, Lee has said on numerous times that SK needs a CEO type of president.
With the anti-rich climate growing in the states, any candidate who said that would be labled as “not caring about the poor.”
Thats why I like both Romney and Lee, because any presidential candidate should at least have a business background and knows how to manage money, rather than a jackass lawyer like Roh, Clinton or Obama who have never operated a canoli stand at the local fair..
July 31st, 2007 at 11:30 pm
There used to be saying that, in order to be president, one ought to have 1) fought in a war, 2) raised a family, and 3) run a business.
I do not possess an MBA or a JD, so I find the institutional and class rivalry between the two groups amusing at times. I know a former think tank colleague, an attorney, who rails against ethical lapses of business managers (a curious charge given the rather large number of lawyers who are disbarred each year for ethical lapses).
My best friend is a former Air Force JAG (who suffered a devastating injury during training as a bomber pilot during the Vietnam War era and who volunteered for Desert Shield). He is fond of saying that he went to a law school because he could not get into a medical school. He was subsequently a prosecutor in Texas, and he absolutely loathes lawyers in general.
Entrepreneurial types will often herald the “value-creation” role of those who build businesses while criticizing the “parasitic” nature of the legal profession.
Lawyers will emphasize the legal profession as a foundation of non-violent dispute resolution, a key to rule of law that makes entrepreneurialism possible in the first place.
While I am not convinced that we would all settle our disputes with guns the moment all lawyers disappear, I think “parasitic” is inaccurate and hyperbolic. I would settle for “symbiotic.”
July 31st, 2007 at 11:40 pm
Perhaps LMB sees himself as a latter-day Lee Kuan Yew.
I will say this, LMB was a very competent, even innovative manager with chutzpah. He will definitely lead rather than follow polls or opportunistic incidents as President Roh has done.
I think LMB’s presidency will be beneficial to South Korea, and it will certainly enhance U.S.-Korea relations.
August 1st, 2007 at 12:16 am
“There used to be saying that, in order to be president, one ought to have 1) fought in a war, 2) raised a family, and 3) run a business.”
Romney helped raised 5 sons and helped Bain Capital buyout Staples and Dominoes Pizza so two out three isnt bad.
To my amazement, Romney has a joint MBA/JD from Harvard. From my previous comments you can tell I dont care too much for lawyers. Its just that I dont like the idea of someone who has never even taken a company on its last legs and turn it around into a profitable organization telling me what to do with my money and why I should pay more in taxes.
People like Roh & Clinton fail to understand that it is BIG BUSINESS along with small business owners that make countries grow. When you try to stifle that growth to fund your own little social experiments that pander to the less fortunate you are only going to hurt those who you pretend to care about. As a black man, I am often critized by so-called progressives who have a problem with me beleiving in the Reagan-Thatcher economic model. I get it much worst from my own kind i.e. Clarence Thomas wannabe, Uncle Tom so on and so forth.
My mom came to this country and never went on welfare, so I will be damned if some politician thinks they are doing me and other ABLE BODY minorities a favor by promising more handouts.
August 1st, 2007 at 12:30 am
I have been following Lee since I watched that Discovery Channel special on the Cheonggyechon Stream which he ordered to be built even against public opinion. That project alone shows you what a forward thinking leader he is.
When ever I get the chance to visit Seoul, that is the first place I would like to visit.
August 1st, 2007 at 1:14 am
Lawrence,
I think you are on track, it amazes me that people don’t realize larger tax revenue (ie bigger profits) allow for more social services.
August 1st, 2007 at 1:32 pm
What if Park Geun-hye becomes President — will her policies benefit the South Korean economy? I am not an expert on the South Korean economy, and I would be curious to read the comments of the “regulars” on this blog.
Lawrence: I just returned from an all too short vacation in Seoul. Cheonggyecheon is an outstanding experience (http://en.wikipedia.org/wiki/Cheonggyecheon). It is fun by day, and fantastic by night.
August 2nd, 2007 at 12:16 pm
It is unclear to me what Park’s theme is (Lee’s is obviously Mr. CEO President).
Great handle, by the way. Is it an homage to Mikhail Tukhachevsky or is it your real name?
August 3rd, 2007 at 9:20 am
Thank you, James. Yes, my handle is an homage to Mikhail Tukhachevsky. I was a Russian studies major at university, but the interest in Korea was always there.
August 1st, 2009 at 3:40 am
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August 1st, 2009 at 3:57 am
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