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Tag Archives: South Korea

South Korea and Finland Have the World's Best Education Systems

Why would France want to ban homework?

President Hollande has said that less homework means more equality. At home, income makes a difference. Higher income families have children with higher test scores and more help with homework. They have their own bedrooms, their own desk, their own computers, tutors and pressure. How to make all equal? Eliminate the home influence.

Interestingly, more equity does not necessarily mean a lower quality educational system. In The Global Index of Cognitive Skills and Educational Attainment published by Pearson, 39 countries and one region (Hong Kong) were ranked for successful educational outcomes. Finland, with its emphasis on the equity that France seeks, is ranked #1. In Finland, learning is idea and understanding based with almost no homework.

But wait.

Using a totally different approach, South Korea was ranked #2. In South Korea, students do hours of work after school while in the classroom, teachers use a highly disciplined rote learning approach.

And yet, Finland and South Korea are actually not so different. With Finland valuing equity and South Korea, the hard work ethos, both had high-quality teachers, accountability and a moral mission. Ranked lower on the list, the UK was #6, the US, #17 and France, #25. The full list is below.

Who would have thought that a country’s homework philosophy can reflect its economic values?

Sources and Resources: This Louis MenandĀ New Yorker article combined the Hollande proclamation, the Pearson report and a wonderful discussion of the implications. Elsewhere, articles looked at President Hollande’s announcement, here, and the Pearson report, here. And here, is a link to the reportĀ itself which I recommend reading. Finally, I especially enjoyed these 26 amazing facts about Finland’s education system from Businessinsider. It sounds like a wonderful recipe for success.

From the Pearson report:

Finland and South Korea are Ranked at the Top of Pearson's Educational Outcomes Report

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The Panama Canal Project Facilitates World Trade.

The roof of the big-box store near your home could contain fabric that was made in Greensboro, N.C. Transported in rolls that are 12 feet wide and 5,000 yards long, this material is also made in South Korea.

Until now, U.S. textile firms could compete against a cheaper South Korean product through faster delivery and customer service. Explained by the NY Times, the U.S./South Korea free trade agreement that Congress just passed would eliminate any advantage U.S. firms had created because lower tariffs will mean even lower prices. 

Here in a past econlife post is more about KORUS (Korean-U.S. Free Trade Agreement). And here, the U.S. government presents the benefits of free trade and details our free trade pacts.

The Economic Lesson

Free trade always seems to take us to the visible and the invisible. We can easily identify the lost jobs. However, it is tougher to quantify the jobs created by exports and the money consumers and businesses save from cheaper imports.

Combining Adam Smith (1723-1790) and David Ricardo (1772-1823), we can see why most economists support free trade. In a factory, Adam Smith says specialize through division of labor. When each worker has a specific task, output multiplies. Increasing output requires bigger markets in order to sell what has been produced.  As mass production enables us to move from local markets to regional specialization to free world trade, as David Ricardo explained, the world benefits. Here is a great econtalk podcast that connects Smith, Ricardo and trade.

In a 2006 survey, 87.5% of all PH.D members of the American Economic Association said yes to free trade by agreeing that “the U.S. should eliminate remaining tariffs and other barriers to trade.”

An Economic Question: Would you support free trade if, by subsidizing its exports, a country made it impossible for U.S. firms to compete? Explain.

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KORUS has been in the news. The Korea-U.S. Free Trade Agreement, negotiated in 2007 but not ratified by Congress, was in trouble. One reason was Ford.

With a 1% share of the South Korean car market, U.S. automakers want more. One of the bigger sellers of Ford vehicles in South Korea complained about import taxes that make his vehicles so much more expensive than Korean made cars. Ford also said that unfairly high South Korean emissions and safety standards on imports prevent them from competing.

I guess all of this reminds me of China and our chicken feet and Italy and Pecorino cheese. When we put a tariff on their tires, China retaliated against our chicken feet. When the EU unfairly treated our bananas, we taxed their cheese.

The significance? Free trade agreements increase U.S. exports. They stimulate our economic growth. Also, though, whether in South Korea or the U.S., they challenge specific domestic producers and can eliminate domestic jobs. Free trade is one of those issues that has been debated for centuries and will remain controversial.

The Economic Lesson

Combining Adam Smith and David Ricardo, we can see why most economists support free trade. In a factory, Adam Smith says specialize through division of labor. When each worker has a specific task, output multiplies. Increasing output requires bigger markets in order to sell what has been produced.  As mass production enables us to move from local markets to regional specialization to free world trade, as David Ricardo explained, the world benefits.

In a 2006 survey, 87.5% of all PH.D members of the American Economic Association said yes to free trade by agreeing that “the U.S. should eliminate remaining tariffs and other barriers to trade.”

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It is more likely that a 75 year-old South Korean will be working than a 60 year old Frenchman. According to OECD (Organization of Economic Cooperation and development) statistics cited by Floyd Norris, workers in South Korea and Japan remain in the labor force longer than their French counterparts.

Is this good or bad? It might depend on how you answer the following questions:

1. Is grandpa taking junior’s job?

2. Can government afford to take care of grandpa?

3. Does grandpa like his job?

The Economic Lesson

While France is hit by demonstrations against raising the retirement age to 62, South Korea is scheduling “silver job fairs” to help older workers find jobs. Understanding the different approaches takes us to the political, economic, and social implications of fiscal policy–government spending, taxing, and borrowing.

 

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The kimchi mini-crisis is a perfect tale of supply and demand. Kimchi, “a fiery cabbage-based staple of Korea,” is typically made from “seasoned, fermented napa cabbage”.

Farmers supply the napa cabbage for kimchi and demand comes from restaurants and consumers. Excessive rainfall has devastated napa cabbage harvests. Available for free at restaurants, sort of like salt and sugar, kimchi is a South Korean staple.

With supply plummeting and demand at a consistent high, you can imagine where price has gone. Moving from 2500 won a month ago, to 4,000 won 2 weeks ago, to 11,500 won ($10.09 USD) now, the price of one 5.5 pound head of napa cabbage has more than tripled during the past month. At 3.6%, the South Korean inflation rate has risen to a 17 month high.

The Economic Lesson

An economist would ask how to affect the supply and demand curves. On the supply side, tariffs on foreign napa cabbage have been suspended and the government is buying extra napa cabbage from China. As an upward sloping curve, supply should shift to the right as imports increase. Demand appears much harder to affect since kimchi is a staple. The South Korean president has said he will use a different kind of cabbage in his kimchi but few seem to be following his lead.

If supply shifts to the right and the downward sloping demand curve shifts to the left, then equilibrium price would start moving back to 2,500 won.

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