Growing with Unicorns: Can Korea Reboot its Growth Strategy?

The growth context

Every country irrespective of its position on the income ladder is committed to growing its economy—occasional talk of ‘degrowth’ notwithstanding (Bokat- Lindell 2021). Countries expressing greater awareness of risks associated with climate change and environmental degradation want growth to be green and sustainable. Those that perceive the political and social costs of inequality add inclusiveness to the growth agenda. Middle- and high-income countries are also discovering that from near the turn of the century, and more decisively since the Financial Crisis of 2009, an increasing share of their growth must be sourced from improvements in total factor productivity derived from innovation and better use of intangibles. Physical capital will continue to play a role, albeit a diminishing one, and increments in the quality of human capital1 can also contribute a bit; however, most countries are coming to terms with a shrinking workforce, if not immediately then within a decade or less.

Author:
Shahid Yusuf
Chief Economist, The Growth Dialogue, George Washington University School of Business. Send comments
to shahid_yusuf@hotmail.com, copied to info@growthdialogue.org.

Publication:
The Growth Dialogue

Publication Year:
May 2022

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Growing with Unicorns: Can Korea Reboot its Growth Strategy?