Koreans Exemplary Way to Overcome Economic Crisis - Essay Example

IMF’s bailout package of $57 billion had come with huge conditions. The structural reforms were implemented in the form of the massive layoff, shutting off of banks, control of IMF vis-à-vis decision making in tax rates, interest rates of central banks. These had huge cascading ramifications on the people at large. They were forced to liberalize their economic policy to facilitate foreign market entry, cutting taxes and drastically reducing government spending at the cost of public welfare.

But Korean people were not prepared to take the economic depression placidly. They came to the rescue of their country through personal commitment and proactive participation.IMF’s bailout package of $57 billion had come with huge conditions. The structural reforms were implemented in the form of the massive layoff, shutting off of banks, control of IMF vis-à-vis decision making in tax rates, interest rates of central banks. These had huge cascading ramifications on the people at large.

They were forced to liberalize their economic policy to facilitate foreign market entry, cutting taxes and drastically reducing government spending at the cost of public welfare. But Korean people were not prepared to take the economic depression placidly. They came to the rescue of their country through personal commitment and proactive participation. Gold collection movement This was one of the most unique and exemplary exhibitions of patriotism. The citizens of Korea donated gold from their personal collection of jewelry to the movement and collected a whopping $2.

2 billion from 3.5 million Korean citizens. A huge queue of enthusiastic citizens could be seen at various collection centers. Eight tonnes of gold was collected in the first week (bbc.com)  Queue at collection centreReduce imports Koreans were very sensitive to their country’s vulnerability to the exploits of IMF which had forced them to liberalize their economy for the foreign market. They showed their resentment by reducing their imports by promoting goods made in their country only.

They focused on strong manufacturing exports to improve their economic conditions (koreatimes.com). Free food and shelter for unemployed The social organizations and churches set up shelter homes for the burgeoning number of unemployed persons due to large layoff. Old traditions Koreans have been renowned for their love of their country. In 107, when Korea was overwhelmed with a national debt of 13 million won, ‘National Debt Repayment Movement’ had come to the fore and collected 190,000 won.

The Korean culture greatly takes pride in their national heritage and likes to be a proactive participant in its nation-building processes. Astounding recovery Through innovative measures and people’s participation, South Korea was able to overcome its financial crisis within one year. Its economy grew at 10% in 1999 and 9% in 2000. It was able to raise its foreign reserve of $8.9 billion in December 1997 to $41.4 billion in August 1998. There were no union strikes or street protest to undermine government initiatives.

The people of Korea followed the austerity measures and worked for hand in hand with the government during the crisis period. This ensured rapid recovery from the financial crisis and re-established Korea’s credibility in the international market.