| This research essay will focus on the factors that were responsible for the economic modernization of Taiwan and South Korea in the twentieth century and how the economies of Taiwan and South Korea have been implemented into the New York State Global Studies Curriculum.;In Taiwan and South Korea, the state was so deeply involved in every aspect of development and gave priority to domestic demand. They employed almost two decades of import substitution In order to build up their own businesses. The government in both countries enacted extensive land reforms.;Rapid industrialization in Taiwan and South Korea can be explained by their rapid accumulation of productive factors such as physical capital, human capital and technology. Both governments made an effort to build up heavy industry.;Taiwan's economy right from the start of industrialization was composed of many small firms and tended to remain that way. in South Korea, a handful of large conglomerates (chaebol) began to dominate the economy in the 1960s.;In the early 1970s, Taiwan began to shift from peripheral to semiperipheral status in the world economy. By 1970 South Korea had achieved NIC (newly-industrializing country) status. South Korea continued Its rapid growth throughout the 1980s. However, in late 1997, a serious economic crisis occurred in South Korea.;The economic crisis that began in Japan and South Korea in 1997 was primarily caused by high debt levels and poor economic decisions made by the leaders in both countries. South Korea has lagged behind Taiwan in the 1990s because the chaebuls had too much control over the economy and the Koreans lacked the entrepreneurship and risk capital of Taiwan.;As of now, the economy of Taiwan is relatively strong and the economy of South Korea is showing some signs of recovery. The government is repairing its broken banking system and many foreign investors are beginning to pour their money into the Korean stock market. |
