Analysis of Economic Growth in South Korea : Modeling Saemaul Movement in 1970s

Abstract

This paper discusses the meanings of Saemaul Movement in 1970s as an economic growth and development model and analyzes the effect of Saemaul Movement as a key factor of rapid growth in South Korea. Many factors are embedded in Saemaul Movement but especially the Three Spirits, Self-help, Diligence, Cooperation, are key elements to make the Movement successful. I assumed these spirits as social capital and analyzed how sustainable support from the government could affect to increase the social capitals. I find out that as the portion of government support increases, social capitals are accumulated more and this makes economic growth rate to boost up. It suggests that there are limitations to economic growth just for the physical capital accumulation but with the social capital, one country can get the full benefit of economic growth. This paper proved Saemaul Movement can be applied to other developing countries as an economic growth model.