Song In-chang, top international finance expert, on the real secret behind Asia's growth

Song In-chang, a former career official in international finance and South Korea's G20 ambassador for international cooperation, has published a book on development economics and Asian economic development with one of the world's most respected academic publishers in the humanities and social sciences.

The book draws on Song's policy experience to explain the fundamentals of economic growth, and draws attention from policymakers and researchers for the practical insights it offers.

According to government circles Sunday, Song topped his cohort in the civil service examination and holds degrees from Seoul National University in economics (bachelor's) and public administration (master's), as well as master's and doctoral degrees in economics from the London School of Economics and the University of York, respectively.

Song helped manage South Korea's response to the 2008 global financial crisis as director of the international finance division at the Ministry of Economy and Finance. He subsequently served as director general for international financial cooperation, director general for international financial policy, assistant minister for international economic affairs, and executive director at both the European Bank for Reconstruction and Development and the Asian Development Bank — a career that established him as one of the country's foremost international finance experts. Until March this year, he served as G20 ambassador for international cooperation, representing the government in G20 diplomatic activities.

Drawing on that experience in international finance and development policymaking, Song published "Asia's Journey for Prosperity" with Routledge, the British academic publisher founded in 1836.

"The purpose of this book is to identify the key factors that enabled Japan, South Korea, China and India — the 'Four Asian Geese' — to achieve sustained economic growth," Song said. "Many Asian countries have yet to climb onto the ladder of sustained growth, and some have reached the starting point only to stall."

"I hope this book will serve as a practical reference for those countries as they seek a path toward sustainable prosperity," he said. "Above all, understanding the precise causes of past success is essential to overcoming today's challenges and preparing for a better future."

He added that "past formulas such as industrial policy, export-led strategies and large-scale infrastructure investment no longer guarantee the same results in a changed environment," and described the book as "a guide for the Four Asian Geese to find new ways to fly faster and farther together."

What sets the book apart is its departure from conventional approaches in development economics. Standard growth theory locates the sources of economic expansion in technological progress, capital accumulation or macroeconomic variables such as total factor productivity.

Song argues that while such explanations are useful for decomposing growth after the fact, they offer limited practical guidance for developing countries. Total factor productivity — widely cited by economists as the single most important driver of growth — refers to the portion of economic expansion not explained by increases in capital and labor. What is commonly described as "technological advancement through research and development," Song notes, is already captured in measures of labor and capital productivity and is not directly related to total factor productivity.

The framework Song proposes rests on what he calls the "Four Pillars" of economic growth: a free and open market economy; accountable government and effective policy; education and human development; and saving and investment leading to capital accumulation.

"Sustained economic growth becomes possible when the Four Pillars are developed in a balanced way," Song said. "Do not imitate the outward form — understand the principles behind it."

"Land reform, for example, played an important role in Japan, South Korea and China alike, but that does not mean every developing country must carry out the same kind of land reform," he said. "The essence of land reform was not the redistribution of land itself, but the fact that it raised farmers' productivity, increased savings and made capital accumulation possible."

The central challenge Song highlights for the future is not simply a slowdown in growth rates but the question of how to redefine the very goals of economic growth. He also draws a clear distinction between economic growth and economic development.

"The old 'growth first, clean-up later' strategy is no longer sustainable," he said. "Sustainable development, rather than growth for its own sake, must become the new objective of economic policy."

"We must also keep a close watch on other structural shifts Asia will face," he said. "Globalization is no longer expanding as rapidly as it once did, and the US-China strategic rivalry and supply chain realignment are progressively fragmenting the international economy. At the same time, low birth rates and aging populations are creating new challenges in the form of a shrinking labor force and rising fiscal burdens."

"These changes mean that simply repeating the formulas of the past can no longer guarantee sustained prosperity," he said. "Economic policy must evolve to meet a new era."

That means markets must play a larger role than before, and governments should focus less on directly controlling industries and more on creating an institutional environment that fosters innovation and competition. Above all, Song said, inclusive growth — ensuring that the fruits of expansion are shared more equitably across society — will become increasingly important.

"Economic growth is not achieved through a single reform or a single policy," he said. "Economic development is an endless journey of continuously recalibrating the balance among markets, government, education and capital accumulation in response to a changing domestic and international environment."

"That is why the book is titled not simply 'Economic Growth' but 'Asia's Journey for Prosperity,'" he added. "Prosperity is not a destination already reached — it is a journey that must continue, constantly responding to new challenges."