Güven Sak, PhD - [Archive]

Korea banned the import of Apple's iPad for approximately nine months 15/04/2011 - Viewed 2572 times

In the 1970s, Turkey and Korea were similar. Today, however, Korea is a much more advanced industrial country than Turkey.

Yesterday I stated that countries can be grouped in two categories,  "undistinguished economies that have the means to produce only ordinary products" and "economies with high potential that can produce unique products." Remember? I said the more undistinguished an economy was, the lower its per capita income. At the same time, the countries that succeeded in developing the capacity to produce unique products make fewer mistakes in administering the university entrance examinations, for instance. The capacity of a country in one sector is an indication of its capacity in another sector. The capacity of hospitals indicates the capacity of the post offices. However skillful the military is how skillful the political parties are. Let me tell you why.

Korea has improved its economic capabilities set during my lifetime. It has become a high-potential economy that can produce unique products. Meanwhile, the per capita income of the country has increased, too. In  the early 1960s, Korea and Turkey had similar levels of per capita income, but now theirs has more than doubled that of Turkey. That is not all. A couple of years ago, the executive of one of the electronic industry giants of Turkey said, "In the past, we used to participate in the in-service training seminars organized by Japanese electronics firms together with Korean engineers. They no longer participate in those seminars. We cannot access them when we need them, either." Do  you not wonder how this could have happened? You should.

In the recent era, has Korea become a country capable of using industrial policy skillfully. They have been doing this while we have been sound asleep. While we are showing off saying, "We have demonstrated the best economic performance in the world," they are working hard and silently. Somehow, we love to show off and wander around. What is this? Is this because we are Middle Eastern? Or is it part of being Mediterranean?

Anyway, while we were bragging with comfort, Korea banned the import of Apple's iPad for approximately nine months. TEPAV researcher İrem Kızılca's policy note on the issue can be accessed on TEPAV's web site. Korea delayed the importation of iPad with lame excuses and non-tariff barriers. Until when? Until Samsung Electronics, a Korean electronics giant, introduced the Galaxy, a tablet to rival the iPad. Korea followed a similar path a few years ago, but for the iPhone. The İPhone entered the Korean market after a two year delay.

So what is this? This is evidence of the fact that industrial policy is relevant in the current era. Those who argue that it is necessary to introduce precautions to prevent imports have to build the infrastructure to enable such an action, if they are sincere. The rest is nothing but empty talk. The other day, the US Secretary of State spoke at the Brookings Institute and said, "Arab countries were less industrialized in 2007 than they were in 1970." Korea was less industrialized in 1970 than it is today. Turkey also was less industrialized in the 1970s than it is today. In the 1970s, Turkey and Korea were similar. Today, however, Korea is a much more advanced industrial country than Turkey. They have gone beyond the barriers; we are still at square one. It is not like "we have been abandoned in the desert" bad, but it is not good, either. In short, it is average.

Why are we like this? Why are they different? I believe that the skills gap at the administration level is an important determinant. The Honorable Prime Minister of Turkey said that he was satisfied with the statements by the Student Selection and Placement Center (OSYM). Okay, very well. It appears that we will continue watching Korea for some time more.

This commentary was published in Radikal daily on 15.04.2011