Miracle in the works …?

The sovereignty of Korea was guaranteed by the sacrifice of 3 million Koreans and tens of thousands of men and women from other peace loving nations, including Ethiopia.
After the Korean war ended in 1953, one Chung Ju-yung returned to civilian pursuits by re-opening his small car repair shop which quickly became a huge success – so successful in fact that today, that humble workshop has become Korea’s largest ‘chaebol’ and one of the world’s most profitable conglomerates.
We are talking about Hyundai – the perfect case example of how micro, small and medium sized enterprises can transform a nation. The Hyundai ‘miracle’ epitomizes the determination of the dynamic and hardworking South Koreans to rid themselves of backwardness – a conscious national decision that evolved in the years between 1953 – 1960.
Since that era of national awakening, the Korean economy has become the 12th largest in the world and per capita income has risen an astonishing 10,000 %! Astounding as this is, it is not so surprising when we learn that Hyundai ( just one company mind you) pumps yearly into the economy, over 4 times Ethiopia’s annual foreign exchange earnings in taxes alone. It took Hyundai less than two decades to be rated as a world class company, in the league of multinationals such as Toyota and Ford not to mention its global dominance in heavy industry, including the lucrative shipbuilding sector. What a role model!
There is much that micro, small and medium scale enterprises in Ethiopia can learn from the experiences of the Korean miracle. Not to harp on about the once comparable economy of Ethiopia to 1950s Korea and the similarity of agrarian culture the two nations shared but facts are facts. Yes, Korea was an aid dependent, desperately poor, wartorn and predominantly peasant economy as recently as forty years ago, just like Japan used to be, another nation early Ethiopian intellectuals aspired to as a worthy model for Ethiopia to follow.
These nations did not attain prosperity and social harmony overnight. Their industrial infrastructure, their multi-billion dollar companies and the societal successes were not performed by magic but rather by concrete steps taken on the road to transformation.

The Korean recipe for success consisted of the following:

A.Focus on Education
B.Micro,Small and Medium scale business development
C.Attracting consistent FDI flows
D.Rational protectionism
E.Liberalization of politics
F.Scientific Reaserch

In many respects, Ethiopia does seem to be aware of this affective prescription which has been proven right wherever it has been applied. Already we are noticing an amazing resurgence in especially the export sector. Our country has finally managed to break the billion dollar threshold. Still insignificant but yet the Japans of this world started from an even lower limit.
Perhaps the strongest indication yet that truly competitive Ethiopian companies will emerge soon is the influ of foreign investors to our economy. Such avid international investor interest is welcome and will surely spur us on toward the first miracle economy in Africa. we hope!