By Sung-Hee Jwa
The reader will locate right here analyses of a variety of prior and present coverage reports and reform efforts in Korea. The coverage classes drawn are designed to assist Korea's transformation from the government-led improvement version to a contemporary market-orientated financial system. the most guiding principle of this publication is that Korea's fiscal destiny relies completely upon the profitable integration of market-orientated platforms and as such, coverage thoughts are duly offered.
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Additional resources for A New Paradigm for Korea’s Economic Development: From Government Control to Market Economy
The Korean economy became increasingly open during the 1990s, integrating with the global economy through various policies of ﬁnancial liberalization, including capital ﬂow liberalization. Given the increasing openness of the economy, Korea can no longer rely on direct regulations for macroeconomic management. 2 Characteristics of government-led economic management It is generally accepted that the Korean government has played a decisive role in the nation’s successful economic development during the last thirty years.
3 Legacies of government-led economic management More than thirty years of active government intervention have created legacies that pose serious obstacles to the policy regime shift toward greater participation by the private sector. Although informational requirements for efﬁcient economic policy making have become increasingly difﬁcult to maintain, Korean policy makers, including economists who are accustomed to the mind-set of the past regime, still assert that they can and should manage the economy down to the ﬁnest details.
They see that Asian economies beneﬁted the most from a government strategy that followed the lead of the market, rather than trying to actively direct it. On the other hand, a group of economists known as revisionists attribute greater signiﬁcance to other aspects of the East Asian success story that have gone relatively unnoticed in the neoclassical analysis. They observe that the East Asian governments have taken a much Government versus the Market 37 more active role in the economic development process than the one envisaged by neoclassicists and thus argue that, despite efforts to do quite the opposite, the government has actually been leading the market.