[Market Economy in Your Pocket] Businesses Are the Foundation of the Nation

As markets continue to expand beyond national borders, only a small number of companies with global competitiveness survive the competition. The very agents that must carry out this fierce economic war are businesses. That is why the economies of countries with competitive firms are vibrant, and individuals there enjoy a better quality of life.

In the past, people said, “Agriculture is the foundation of the nation.” But now we live in an era in which “Business is the foundation of the nation.” If agriculture was at the center of agrarian society, businesses are at the center of modern society. Countries where startups thrive and firms can be successfully nurtured are more likely to prosper, and this is an age in which nations that create many world-class companies become wealthy.

Building world-class companies is not as easy as it sounds. In fact, not many countries have actually done it. Outstanding companies cannot emerge from socialist countries or from countries with strong anti-business sentiment. That is why countries friendly to the market economy, countries with strong pro-business sentiment, and countries that value entrepreneurs are bound to prosper.

Fortunately, Korea has produced a number of world-class companies. This is the result of past policies that faithfully adhered to capitalist principles by promoting market competition and supporting businesses. Yet regulations are now holding firms back, as globally proven efficient management practices are denounced as chaebol, octopus-style diversification, or imperial management. In truth, the corporate governance structure that has produced the best global management performance is the best governance structure.

From the standpoint of socialism and egalitarianism, businesses are seen as evil. They appear to be unjust entities that prey on weaker animals, dirty entities riddled with corruption and irregularities. But such businesses are what make our society healthy and prosperous. The immense power of large corporations that have grown into world-class companies is not something to condemn. Rather, if we create 10 more such large corporations, our society will become one of the most prosperous countries in the world.

For a population of 50 million to live well, more world-class companies must emerge. Businesses are the growth engines that drive the national economy.

Original title: [주머니 속의 시장경제] 기업천하지대본 (企業天下之大本)

Author: Center for Free Enterprise (CFE)

Date: 2005-08-01

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=22&idx=10650