Korean Growth Policy

Yung Chul Park and

YCP

Yung Chul Park

Rudiger Dornbusch

RD

Rudiger Dornbusch

Discussants: Susan M. Collins and

Susan M. Collins President - Federal Reserve Bank of Boston, Former Nonresident Senior Fellow - Economic Studies

Vittorio Corbo

VC

Vittorio Corbo

KOREA CONTINUES to be in the limelight as one of a handful of developing countries that have adjusted successfully to both the oil shocks of the 1970s and the debt shock of the early 1980s. Generally credited with the success is Korea’s superior economic policy. In fact, Korea now serves as a model for the export-oriented strategy of development that multilateral institutions are urging on countries of Africa and Latin America. This paper reviews the role of policy in Korea’s success thus far and investigates the current challenges facing government policymakers, in particular the emergence of a massive current account surplus.