16154
S. Korea Needs Creative Reset
World Economy

S. Korea Needs Creative Reset

The sorry state of world economics has a growing number of economists writing eulogies for the globalization model. Hans-Paul Burkner, president and CEO of the Boston Consulting Group, disagrees, to put it mildly.
The German-born financial expert claimed it will be critical for developed economies to continue to commit in encouraging migration and the flow of goods, services and capital in face of daunting economic challenges, Money reported.
South Korea has enjoyed rapid economic growth in the past decades, thanks to export-oriented industrialization strategies that produced a magnitude of change that took a whole century for Western economies. Now it must find ways to avoid the structural problems being suffered now in Europe and Japan, Burkner said.
The financial crisis triggered by the collapse of Lehman Brothers in 2008 has exposed the structural flaws in rich nations, such as increasingly top-heavy population structures and declining productivity. However, Burkner believes this also accelerated the transfer of economic and political power to emerging markets, or in his words, ‘’the East and the South,’’ a rebalancing that has so far defined globalization.
Korea is already one of the fastest aging societies on the planet and its ineptitude in fostering a strong consumer economy to balance its strength in exports continues to sting. It’s also critical for Korean leaders in government and companies to discard their outdated brand of unilateral leadership and embrace diversity in ideas and decision-making processes.
‘’Korea needs to recognize that the country needs a reset,’’ Burkner, 60, said in a recent interview with The Korea Times.
‘’Historically, a top-down direction setting and systems to enforce acceptance and adherence to such leadership was the prevailing mindset. This was the case in both the political and corporate domains. It certainly was an effective way to bring Korea from poverty to the economic power it is today,’’ he continued.
‘’Today Korea is a $20,000-plus gross domestic product (GDP) per capita economy. People will no longer be willing to accept one right way of doing things. Leadership in government and at companies needs to become more diversified and participative. Rules and laws need to be applied to everyone in the same way. Creativity needs to be fostered, beginning through the education system. People need to be exposed to a more diverse set of issues and beliefs.’’
The global economy has been battered by a heady mix of negatives, highlighted by the financial turmoil in Europe, faltering recovery in the United States and a lethargic China, and concerns continue to rise as the slowdown spreads around the world.

 

Short URL : http://goo.gl/TexYSi

You can also read ...

If both sides continue with tit-for-tat tariffs, the inflation would lead to further increases in interest rates  and give rise to disturbances in the currency markets.
The trade war between the US and China risks substantially...
Hong Kong’s GDP fell to 3.5% in the second quarter.
The outlook for Hong Kong’s economy is darkening as rising...
Many emerging market economies are better prepared now because they have a good international reserve position and they allow their exchange rates  to float more freely.
Italian economist Claudio Borio is considered an authority in...
Crypto Market Struggles as Bitcoin Dips Below $6,000
Bitcoin touched below $6,000 and dozens of smaller digital...
Norway to Surpass Sweden
Sweden’s economic prospects have dimmed in recent months and...
China Growth Momentum Slows
China’s economy hit a mid-year rough patch as efforts to curb...
Bankruptcy Soars Among Elderly in United States
A growing number of retirees in the US are filing for...
Lebanon Economy Struggling
Lebanon’s economy has been in a precarious position in recent...

Trending

Googleplus