Simon Johnson, a professor at the Massachusetts Institute of Technology (MIT) and co-winner of the 2024 Nobel Prize in Economics, emphasized that establishing inclusive political governments is key to fostering strong, sustainable economic growth.
In a phone interview with the JoongAng Ilbo, an affiliate of the Korea Daily, on October 14, Johnson highlighted South Korea’s economic progress as an exemplary model for the world to follow.
“Korea is an outstanding case of remarkable economic achievement built on inclusive institutions,” Johnson remarked. “Compared to many other countries that were struggling in the 1960s, Korea’s success stands out as truly impressive. It serves as a critical example of how inclusive institutions can drive economic prosperity.”
“Korea fought for decades to build the democracy it enjoys today. Although the process wasn’t easy, it has resulted in a robust and dynamic democracy that offers more opportunities to its citizens,” Johnson said.
He also discussed Korea’s historical challenges, pointing out the stark contrast with North Korea. “Before the Korean War, much of the industrial infrastructure was concentrated in the north. However, North Korea adopted an authoritarian system where a small elite held all power and economic opportunity, while South Korea built inclusive institutions. Despite sharing the same cultural and geographical background, the economic gap between the two countries has now grown more than tenfold.”
Johnson acknowledged, however, that Korea faces long-term challenges, particularly related to its low birth rate and aging population. “To thrive in the global economy, Korea must remain open, adaptable, and foster entrepreneurship,” he advised.
On a positive note, Johnson praised the global rise of Korean culture, including K-pop and K-dramas.
“The fact that Korean creators are sharing messages that resonate worldwide is very encouraging. Creativity and innovation are clearly present in Korean culture, and they are essential sources of economic success,” he said.
He also emphasized that such innovation needs to extend beyond the cultural sector to the corporate world, fostering organizational cultures that encourage motivation and innovation.
Johnson has a close connection to Korea—his wife is of Korean descent, and he worked in Korea during the 1997 Asian financial crisis. He has also participated in multiple Korea-related projects.
On the recent news of author Han Kang’s Nobel Prize in Literature win, Johnson expressed his excitement. “I’m very familiar with the news. Although I haven’t read her work yet, I definitely plan to—it seems very, very, very interesting.”
When asked about his favorite Korean food, Johnson responded: “Bibimbap.”
BY HYOUNGGU KIM, YOUNGNAM KIM [kim.hyounggu@joongang.co.kr]
