South Korea is known for its spectacular rise from one of the poorest countries in the world to a developed, high-income country in just a few generations. There are lessons for us in Nigeria on how the Asian country achieved that status.
Korea is moving from an economy that relied extensively on the export of increasingly advanced manufacturing to one in which domestic consumption plays a larger role and from an economy that derived its momentum mainly from investment and productivity gains in manufacturing to one that is attempting to source more of its growth from innovation, the application of digital technologies, and smart urbanization. This is not too difficult to copy. In fact Nigeria was on track to achieve these in the 1980s. But we backtracked. The good news is that we can retrace our steps.
Key to Korea’s development is education. They were deliberate about education from the cradle to the higher institutions. A recent study by Intelserve reveals that while Nigeria has spent $48billion on education in the last 44 years, the United States spent $900 billion in 2018 alone. If the US example appears farfetched given that it is a first world country, it should be noted that total expenditure on educational institutions in Korea for all levels of education was the third highest among OECD countries, about 8 per cent of GDP in 2011, compared to 6 per cent on average for OECD countries overall. Is it any wonder then that the country is among the top flight?
But perhaps the most strategic thing about Korean education, as is the case with other advanced economies is that universities exist in an echo system comprising them, research institutions and industry. This system highlights the place of research/science and technology in the advancement of the economy.
In Nigeria, university research is near nonexistent. Where they exist, they are often substandard for lack of funding and serious enquiry and are mostly confined to shelves. The country’s research institutes, which were set up to research into specific areas of growth are struggling for legitimacy for lack of funding and attention. It is interesting to note that Nigeria has a road research institute yet its research is never consulted by government let alone the private sector. It is the same story with the Cocoa Research Institute, NIFOR, PRODA and many more.
While South Korean exports are in demand worldwide, Nigeria’s products are struggling with standards. It was in the news recently that over twenty Nigerian products were rejected overseas for their lack of adherence to standards; some have even become subjects of arbitration at the World Trade Organisation (WTO). Yet we have a standards organisation. What is also interesting is that destination countries have often taken time out to school our manufacturers on the standards required to have safe berths for their products. This is a sad commentary on a country that desires to sell to the world.
We therefore urge Nigeria to x-ray the South Korean economic model with a view to patterning our system and economy after theirs. There’s much economic progress to be made from such a move.
