Schools of Thought South Korea
The rapid growth of South Argentina is facing a
Korea's economy can be
linked to the country's
significant investment of
national revenue. The
investment, on the other
hand, is the highest in the
world. However, South
Korea's investment and
economy have struggled in
recent years, with the
country's investment ratio
falling below the 15% takeoff
level established by Rostow's
Stages of Economic Growth
in 1965.
Linear stages of growth
model Another factor contributing
to South Korea's quick
growth is the country's
"maturity," or the country's
transition into the "era of
mass consumption," where it
will rely on technical
innovation to accomplish
growth and development.
Moreover, because the
country satisfies the maturity
standards, it is capable of
boosting its import and
export to link to other
economies or the global
economy.
South Korea's development
Theories and Patterns of during the last generation has
structural change
been marked by quickly
expanding agricultural
productivity, labor shifts from
agriculture to industry, steady
expansion in capital stock,
Argentina
significant problem in the
linear stages of the growth
model. Since it had been
performing well in previous
years, it was able to climb to
the 11th position in 1870.
However, in recent years, it
has struggled to perform well,
and it is no longer among the
top 60 countries in terms of
per capita income. According
to Rostow, Argentina was
classed as a country on the
verge of taking off in 1914,
and he predicted that the
country would be successful
by the mid-1930s. According
to the data, the country had a
negative growth rate from
1965 to 1990.
Furthermore, the country's
domestic investment fell by
8.3 percent. The country
gradually improved by 3.6
percent per year from 1990 to
2001, but the gains were not
put to good use due to the
debt crisis in 2002, which
caused the GDP to contract
by 11%. In comparison, the
country's GDP is just half that
of South Korea, with a
growth rate of 17%.
Argentina clearly
demonstrates the country's
traditional structural growth
features. The country was
able to boost agricultural
production, gradually grow
industry employment,

education, and skills, and a
dynamic graphic transition
from high to low fertility.
These changes happened
during a period when South
Korea's per capita income
increased by more than 7%
yearly from 1965 to 1990.
South Korea used to be one
of the poorest countries in the
world, but it has now risen to
become one of the world's
most prosperous economies.
Due to the conflict with North
Korea, the country received
financial aid from the United
States in 1950, which
accounted for the majority of
the country's national budget.
What's more, the country is
well connected to some
developed countries, namely
the United States and Japan,
International-dependence through its import and export
revolution of goods. And, according to
the reliance idea, the
country's export to others will
stifle development potential.
Moreover, the government's
initiatives to stimulate the
economy are responsible for
the country's rapid economic
growth. By pursuing an
aggressive industrial
upgrading program, limiting
international companies'
engagement, and encouraging
the formation of local
industry.
In terms of neoclassical
Neoclassical, free market counterrevolutionary
counterrevolution paradigms, South Korea is up
against it. Because the
urbanization, and reduce the
country's fertility rate.
However, consider the
following:
Because there was no
theoretical framework for
analyzing the country's events
and performance, these
features were insufficient for
full and stable progress.
Argentina performs
admirably in relation to South
Korea in terms of dependence
theory. Where the country
can sustain dependency
theories such as the
economy's major source of
income is from exporting
primary goods, with real
prices falling in comparison
to imports. As a result of the
country's inability to fund and
build its own long-term
manufacturing export
industry. As a result, the
country had to sell state-
owned businesses to foreign
companies and impose other
restrictions. In summary,
industrialized countries'
economic interests hampered
the country's development.
In terms of the neoclassical
counterrevolution model,
Argentina is the total opposite
of South Korea. Wherein the
 government established a country reinforces the view
number of laws that that ineffective interventionist
companies and industries laws, inefficient state
must comply with and follow enterprises, a bias towards
in order to achieve export-oriented output, and
competitive advantages. To excessive red tape harm
name a few, these are: using industry and
extensive development entrepreneurship. Because
planning, a myriad of tax government incompetence
breaks and incentives, setting has the potential to trigger the
individual company export economy's problems.
targets, orchestrating efforts
in various industries to Moreover, Argentina
upgrade the average collapsed under the weight of
technological level, rising domestic fiscal and
coordinating foreign external trade imbalances,
technology licensing due in part to the peso's
agreements, and using strong ties to the US dollar.
monopoly power to get the Luckily, the growth of the
best deals, to name a few economy was recovering and
examples. The increasing in 2004. The
aforementioned reforms were recovery of Argentina's
introduced by the government economy, however, remains
to alleviate the country's in risk, since growth fell by
previous challenges during 9% in 2010 and 2011 and by
the Asian Financial Crisis in 2% in 2012. Furthermore, the
1997. In order to avoid it government sector is still
from happening in the future. under transition.

1. Based on the case you have read, briefly discuss growth experience of South Korea and
Argentina   in the context of the four economic development theories.   Use the matrix
below:

2. Briefly discuss how the government of  South Korea averted coordination failures  and
why does the government of   Argentina had  become part of a bad equilibrium?  

To begin with, South Korea exemplifies the government's involvement in overcoming

coordination shortcomings, resulting in the South Korean government enacting strong policies to
force the industry to follow the government's lead. Particularly, South Korea believes that the
government is capable of preventing or stopping it. Due to a series of measures taken by the
government to ensure that the economy has an advantage, the economy of South Korea is
booming. Extensive development planning, a wide range of tax breaks and incentives, individual
company export targets, orchestrating efforts across industries to upgrade the average
technological level, coordinating foreign technology licensing agreements, and using monopoly
power to get the best deals are just a few of the policies that has been implemented. In a nutshell,
the government of South Korea's intervention is for the common good in terms of economic
development and prosperity. Also, the policy focuses on how to strengthen and discipline the
industry so that it can fully utilize its capability.
Argentina, on the other hand, exemplifies how government can become a component of a
bad balance. Argentina believes that government intervention is unnecessary since it can become
part of the balance. Since the government of Argentina focuses its policies mostly on personal or
privilege interests, it loses sight of what the economy requires in hopes of improving. Argentina
does not believe that the government can assist since, if government assistance is handled
incorrectly, it could worsen the economy's problems.
So I can conclude that, the two countries differ due to the fact that South Korea has
government intervention in the economy through policy and development programs, whereas
Argentina has little or no government intervention, which will lead to a worsening of the
country's problems due to poor government management.