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Interesting. Japan is mentioned, and they most have passed through the same point some time in living memory. South Korea too. How did they cope?


This is just speculation...

With Japan, they had seriously begun the process of industrialization in the 1800's with the Meiji Period [1]. So even though their economy and infrastructure was gravely damaged during WW2, they could rebuild quickly.

With South Korea, I don't know. It was a much smaller country. Being a close ally of the USA may have helped with foreign investment which allowed them to climb up the value curve very quickly. I found this on post-WW2 South Korean economic development [2], but haven't gone through the whole thing yet.

[1] http://en.wikipedia.org/wiki/Meiji_period

[2] http://www.nber.org/chapters/c4063.pdf




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