The second difference with East Asia is the ownership composition of the investments. In East Asia, an overwhelming portion of investments took place in the private sector. In China, the opposite is the case. Take Korea as an example. It is true that the investment/GDP ratio rose from an annual average of 19.3 percent in the 1970s to about 32.3 percent in the second half of the 1980s, but the private sector led the way in this investment surge.
