I will tell you about North Korea tomorrow. [Laughter.]
So, per capita income was US$80 per head in 1961. Today it is US$28 000 per head in South Korea. That's the result, and it is the result of the same policies that are in South Africa. [Interjections.]
Listen quietly because you were around during that period.
In South Africa in 1961, our income per capita was US$400, and it is now US$3 000 per capita. In South Korea it is US$28 000 per capita. So, who has done better? South Korea has shown the way for us to follow. Indeed, Ipap is built very much on the kind of interventions that South Korea accepted.
We talk about the developmental state. We don't talk much about the private sector, but now, in the ANC, we talk about a developmental state. What is this? South Korea adopted the policies of a developmental state, which meant planning, co-ordination and sectoral industrial policies. Peculiarly, France has done the same. Scandinavian countries have done the same. What they did is what Ipap is doing - identifying strategic industries, technology, research and development, and upgrading where necessary.
The state does the planning and co-ordination, and the private sector implements. And you are quite right. The state creates the environment - I think you said the same thing. But you see, it is neither a capitalist state nor a business state. It is a developmental state that provides that environment. That's essential.
The other thing they did was implement protectionism. The United States was the most protectionist country in the world in the last century. They had very high tariffs, and they grew behind the tariffs. Why can't we, in a modest way, also apply protectionism?
Prof Ha-Joon Chang told us that South Africa has a strong base. We have the IDC, the Development Bank of SA, or DBSA, and state-owned enterprises. He also said, DA, that we have a strong political base as well. The ANC is a strong party. You see, you need a strong ruling party in order to rule and to rule effectively. Ipap is actually based on a strong ruling party, and that's what is sitting over here. Prof Chang said to us that we can do the job.
Finally, he talked about human capability. You know, very often Harvard professors and so on tell us that our capability is low. Let me tell you what Prof Chang said. He said that at the beginning of industrialisation in East Asia, their human capital base was lower than that of South Africa, and now it is much higher. So, you see, South Korea's level of literacy in the forties was lower than that of South Africa during the same time. But today they have massive engineering and massive technological human capability. The lesson in all this is that we must put Ipap in place. We must do all the necessary things, and we need a good developmental state to do it. Thank you. [Time expired.] [Applause.]