Comparing Free Markets Economies and Central Planning Economies

Oke Umurhohwo

I want to share a story I read about in the Economist Magazine.

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The former military dictator of South Korea General Park Chung Hee called in the Hyundai founder Chong Ju Yung and told him “there is a sudden demand for tankers, go and produce them”.

Chong went to Greece and scoped up 2 contracts to build 260,000 ton tankers, promising his customers delivery in 2 years. At this time Korea did not have a shipyard. He then went to Barclays bank and got financing to build a modern ship yard in Korea. However no one in Korea knew how to build ships so Chong sent 60 engineering disciples to Scotland to learn. The two ships were delivered b4 there deadline.

Today three of the world’s largest ship builders are from Korea. Korean ship builders have two fifth of the worlds market for new modern ships.

Some background, Park Chung…

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