by
The
map
above
shows
one
history’s
forgotten
economic
geography
facts.
Today
we
tend
to
think
of
South
Korea
as
a
economic
miracle
and
North
Korea
as
an
economic
basket
case.
However,
from
the
division
of
the
Korean
peninsula
in
1948
up
until
the
early
1970s,
the
North
was
actually
richer
than
the
South
in
per
capita
terms.
According
to
data
from
the
UN,
the
North’s
GDP
in
1970
was
$4,927
million
USD,
compared
to
that
of
the
South
of
$8,936
million
USD.
But,
the
South
had
more
than
twice
the
population
of
the
North:
32.2
million
vs
15.2
million.
This
meant
that
on
a
Nominal
GDP
per
capita
basis
the
North
was
around
25%
richer
than
the
South
$325
vs
$260.
Fast
forward
to
today
and
the
situation
is
unrecognizable.
Nominal
GDP
per
capita
in
North
Korea
is
estimated
by
the
UN
at
just
$640
per
person
in
2023.
South
Korea
on
the
other
hand
has
a
nominal
GDP
per
capita
of
$35,538
per
person.
This
is
56x
that
of
the
North
or
put
the
other
way
GDP
per
capita
in
the
North
is
1.8%
that
of
the
South.
How
did
South
Korea
get
so
much
richer
than
the
North?
1.
Economic
Policies
and
Reforms:
South
Korea:
Adopted
market-oriented
reforms,
emphasizing
capitalism,
export-led
industrialization,
and
integration
into
the
global
economy.
Policies
encouraged
innovation,
foreign
investment,
and
private
enterprise.
North
Korea:
Pursued
centrally-planned
socialism,
isolationist
policies,
and
self-reliance
ideology
(“Juche“),
restricting
private
enterprise
and
foreign
trade.
2.
Political
Stability
and
Governance:
South
Korea:
After
initial
authoritarianism,
transitioned
to
democracy
in
the
1980s,
creating
stability,
accountability,
and
rule
of
law,
boosting
investor
confidence
and
economic
growth.
North
Korea:
Remained
under
authoritarian
dynastic
leadership,
marked
by
strict
political
control,
human
rights
abuses,
and
military
spending
that
diverted
resources
away
from
economic
development.
3.
International
Support
and
Investment:
South
Korea:
Benefited
substantially
from
international
aid
(particularly
from
the
U.S.
after
the
Korean
War),
investments,
technological
transfers,
and
trade
access
to
global
markets.
North
Korea:
Relied
heavily
on
Soviet
Union
and
China
until
the
1990s,
but
economic
support
drastically
declined
following
the
Soviet
collapse,
leading
to
severe
economic
hardship
and
isolation.
4.
Education
and
Human
Capital:
South
Korea:
Invested
heavily
in
education,
skills
training,
and
human
capital
development,
creating
a
highly
educated
workforce
suited
for
technology,
manufacturing,
and
service
industries.
North
Korea:
Education
emphasized
ideological
indoctrination
rather
than
practical,
market-relevant
skills,
limiting
productivity
and
innovation.
5.
Industrialization
and
Innovation:
South
Korea:
Focused
heavily
on
industrialization,
technology,
electronics,
automotive
industries,
and
global
brands
(Samsung,
LG,
Hyundai,
etc.),
which
propelled
rapid
economic
growth.
North
Korea:
Prioritized
heavy
industry
and
military
production
at
the
expense
of
consumer
goods
and
services,
hindering
growth
and
development.
6.
Openness
to
Global
Trade:
South
Korea:
Aggressively
pursued
open
markets,
free
trade
agreements,
and
export-oriented
growth
strategies.
North
Korea:
Severely
restricted
international
trade,
largely
isolated
from
global
economic
networks.
Flag
map
credits:
What
do
you
think?
Go to Source
Author: Brilliant Maps
