Economists who shared this year’s Nobel Prize in Economics selected Korea as a representative example of success in developing the economy with democracy and an inclusive economic system. The Royal Swedish Academy of Sciences explained that the reason for the award was that these economists studied differences in political and economic systems that led to gaps in economic development between countries.
“South and North were once on equal levels”
MIT Professor Daron Azemoglu (Darren Asmoglu), a professor at the Massachusetts Institute of Technology (MIT) and Professor Simon Johnson of the same university, held an online press conference on the 14th (local time) after being selected as the winner of the Nobel Prize in Economics. He highly evaluated the political and economic systems of Professor Azemoglu explained, “The key to a comprehensive economic system is whether it has things that support secure property rights, equal opportunities, and a fair competitive environment,” adding, “Education, public infrastructure, and the appropriate level of regulation are also important.” He then introduced, “An inclusive political system is one where people have the right to speak and power is distributed equally.” It was believed that Korea’s political and economic system corresponds to a comprehensive economic system and an inclusive political system.
Professor Azemoglu explained, “Before the country was divided and the institutions of North and South Korea were divided, their economies were at the same level,” adding, “Over time, the difference (in terms of economic size) has increased by more than 10 times.” He said, “Development like Korea’s is not easy,” and added, “Korea has accelerated its growth rate since democratization and its growth method has been more healthy.”
Simon Johnson, Professor at MIT Professor Johnson also agreed with this opinion. He said, “Korea, which started out poor after World War II, has achieved amazing achievements over time through economic growth and democratization efforts,” and “I think the path that Korea has taken is the direction that our (research) work should pursue.” did it
Korea’s aging population was cited as a risk factor. Professor Azemoglu said, “Korea is still dominated by large corporations and is facing the problem of aging at the fastest rate.”
“Achieving an inclusive and open national transition”
Professor James Robinson, University of Chicago Another co-recipient, Professor James Robinson, University of Chicago, shared the same opinion as Professor Azemoglu in an interview with AP News that day. “Countries that are relatively inclusive and open have achieved (economic) transformation,” he said. “In the modern world, you can see this change in Korea, Taiwan, and Mauritius.”
Professor Robinson cited the city of Nogales, located across the U.S. state of Arizona and Mexico’s Sonora state, as an example. He said, “Nogales in the U.S. is relatively well-off, has a long life expectancy, and has a high level of education, with most children graduating from high school.” He added, “On the other hand, across the border to the south in Nogales, Mexico, residents are much poorer and organized into criminal organizations. “And corruption is becoming a serious problem,” he said.
In an interview with another media outlet, Professor Robinson said, “Korea is one of the countries that has achieved the most amazing economic success in world history.” He added, “Korea has an economic structure centered on large corporations, but thanks to its export-oriented economy, it has achieved efficiency through competition,” adding, “There seems to be no reason why the economic growth model that has been successful over the past 50 years cannot be sustainable in the future.”
New York = Correspondent Park Shin-young/Reporter Lee Hyun-il nyusos@hankyung.com
