The Failure of Korea Inc.

Prior to 1997 Korea was one of the world's great economic success stories. Between 1962-90, the economy grew at an average annual rate of 9 per cent. Even before the 1997 crisis, Korea's macroeconomic performance looked impressive, with the economy averaging annual growth of 7.7 per cent between 1990-96. This stellar growth performance was characterised by a remarkable degree of macroeconomic stability, the pursuance of an outward-looking development strategy based on the expansion of exports, and considerable investment in human capital.