South Korea and Hungary are two different yet identical countries in a number of perspectives. The paper provides a primer on the comparison between these two countries and describes the baseline data upon which the analysis is based. The background information establishes a framework for the findings and current country position in relation to each other and the world.
With a population of about 9,919,000 people, Hungary is the world’s 84th largest country. In terms of area, it is ranked 109th with an approximate area of 93,028 square kilometers. Historical data reveals that Hungary became a Christian dominion in A.D. 1000, and it became an obstacle to the expansion of Ottoman Turkish in Europe for several centuries. The country then became one of the polyglots of Austro-Hungarian Empire. The empire collapsed during World War I. After World War II, Hungary fell under Communist rule and in 1968 under the leadership of Janos Kadar, the country began liberalizing its economy by introducing the "Goulash Communism."
On the other hand, South Korea with a population of about 50 million is the 26th largest country in the world. It is ranked 108th largest country by area with 99,720 square kilometers. Until the 20th century, an independent Korean collection of states existed as a single independent country. However, in 1945, after WW II, a Republic of Korea (ROK) was formed South of the Korean Peninsula. Thereafter, South Korea realized swift economic growth. Currently, South Korea is a fully running modern democracy.
Compared to South Korea, Hungary performs better in matters related to well-being since it ranks lower in most of the segments of the Better Life Index. For example, In Hungary, the annual average household net disposable income per capita is 15 240 USD lower than South Korea’s 23 938 USD a year. The gap between the rich and the poor is also a major concern. According to OECD Better Life Index, the country’s top 20% of the population earn four times as much as the bottom 20%. (“Hungary - OECD Better life index”). Further comparative analysis between the two countries is shown in the table below.
Comparison between Hungary and South Korea
Retrieved from Central Intelligence USA: World Fact book) https://www.cia.gov/library/publications/the-world-factbook/geos/hu.html.
As deduced from the table above, Hungary’s economic freedom score is ranked at 67.0. Therefore, it is the 51st freest economy in the 2014 Index. According to Heritage Foundation on Hungary, there is a decline by 0.3 point margin. Several factors contributed to this decrease notably the decline in property rights, the continued control of public spending, and fiscal freedom outweighing improvements in freedom from corruption and fiscal freedom. Hungary’s overall score is beyond the world average and about the regional average since it is in position 24 out of 43 countries. However, over the past 20 years, the economic freedom score of Hungary has advanced by nearly 12 points and achieved the “moderately free” economy status. The rule of law and protection of private property have ensured Hungary’s competitiveness and progress. Despite notable step to improve fiscal transparency, further fiscal consolidation and improved public finance management remain critical to propel Hungary a freer market economy.
Following the same line of thought, South Korea’s economy is ranked 31st in the world with an economic freedom rating of 71.2. South Korea’s score is 0.9 point greater than last year; an increase attributed to financial and monetary freedom outweighing meek declines in business and labor. Therefore, out of the 42 countries in the Asia–Pacific region, South Korea is ranked 8th (“The Heritage Foundation – South Korea”). However, over the past two decades of the Index history, South Korea’s economic freedom has been largely stagnant. Remarkable gains in market openness have destabilized due to declines in property rights, corruption freedom, and public spending management. The market openness to a larger extent measures trade, investment, and financial freedoms. In the past two years, however, South Korea’s economy has advanced to the “mostly free” category from the “moderately free” rank it has previously occupied through most of the histories of the Index.
Like most of its compatriots in the freest global economic outlets, the South Korea’s dynamic private sector is strengthened by well-educated labor force. The high capacity innovation in the economy has enhanced openness to global trade and investment. The country’s sound legal framework as indicated in the above table has fostered the economy even though corruption continues to undercut parity and trust in government (“Your Better Life Index”).
According to OECD, life expectancy at birth in Hungary is 75 years, six years lower than the life expectancy at birth in Korea. Even though Korea’s water quality is below the OECD average in terms of water quality, Hungary is much poorer with a 77% acceptance rate against the OECD average of 84%. The same polarized trend also appears in the public sphere. Hungary shows a strong sense of community with moderate levels of civic participation whereas Korea’s civic participation is poorer in comparison. In addition, the Voter turnout in recent elections shows that Korea is better than Hungary with statistical figures standing at 76%. It is 4% higher than OECD average placed at 72% (“Hungary - OECD Better Life Index”).
In comparison, Korea does well in numerous measures of well-being than Hungary, as displayed by the fact that it ranks higher in numerous topics in the Better Life Index (“Your Better Life Index”). It is vital to note that money cannot buy happiness, but it is essential in achieving higher living standards. Moreover, the gap between the richest, and poorest is a major concern – with the top 20% of the people earning virtually six times as much as the bottom 20%.
Currently, Hungary is vulnerable to the effects of the European economic crisis. The country’s authoritarian government and the continued rise of ultra-nationalism only serve to compound the issue. Uncontrolled private and public borrowing the left the economy of Hungary in a sorry state is something that South Korea and other countries can do well to avoid. South Korea’s well-functioning legal framework and efficient judicial system are lessons that Hungary can learn and implement. It is because of the robust Korea’s governance structure is proven to be effective in fostering economic growth and wellbeing.
Work cited
The Central Intelligence Agency. "The World Factbook." The Central Intelligence Agency. N.p., 22 June 2014. Web. 18 Nov. 2014. <https://www.cia.gov/library/publications/the-world-factbook/geos/hu.html>.
The Heritage Foundation. "South Korea Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption." Conservative Policy Research and Analysis. N.p., Nov. 2014. Web. 18 Nov. 2014. <http://www.heritage.org/index/country/southkorea>.
The Heritage Foundation. "Hungary Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption." Conservative Policy Research and Analysis. N.p., 17 Nov. 2014. Web. 18 Nov. 2014. <http://www.heritage.org/index/country/hungary>.
"Hungary - OECD Better Life Index." OECD Better Life Index. N.p.”, n.d. Web. 19 Nov. 2014 <http://www.oecdbetterlifeindex.org/countries/hungary/>.
"Your Better Life Index." OECD. 1 Jan. 2011. Web. 18 Nov. 2014. <http://www.oecd.org/newsroom/47930053.pdf>.
