Policy Reference
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Policy Reference
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The Assessment and Implication of OECD Recommendations on Korea's Environment
A total of 60 environment-related rules exists in OECD as Decisions and Recommendations, out of which Korea agreed to observe 12 rules conditionally and the others unconditionally in December, 1995. In the area of chemical product..
Chang-In Yoon Date 2000.12.30
Environmental policyDownloadContentSummaryA total of 60 environment-related rules exists in OECD as Decisions and Recommendations, out of which Korea agreed to observe 12 rules conditionally and the others unconditionally in December, 1995.
In the area of chemical products, Korea has submitted an annual report to the OECD's Environment Protection Committee describing the status of implementation as required by the rules. After the accession to the OECD, Korea has legislated and modified related domestic laws to observe its commitment to the OECD. For example, self-confirmation system and a protection device to safeguard business secrets were introduced in 1999. Korea will, hopefully, submit its final report in the first half of 2001 confirming Korea has successfully implemented those OECD rules related to chemical products.
In the area of waste management, Korea modified the rules related to the movement of waste among nations, and in 1999 fulfilled the compulsory requirement to write an international waste classification code. Those measures on testing hazardous natures will be enacted after the Environment Protection Committee has integrated the waste management rules with the Basle Convention. There are no problems in the observance of 48 unconditional rules, which are Recommendations rather than Decisions. Korea's Ministry of Environment has modified so far those domestic rules and laws which had some problems at the time of accession.
Korea's efforts to implement those OECD rules contributed to the advancement of Korea's environmental policy, and rearrangement of its environment-related structures and systems. Especially, Korea's chemical product and waste management system has been up-graded to the levels of the OECD countries as a result of its endeavors to keep up with the OECD's Recommendations and Decisions.
Korea is acting vigorously to solve its environmental problems neglected in the early years of its economic development. Almost all of the environmental legislation now in use has been adopted or updated over the last 10 years. Now, the enforcement of these rules should be emphasized and local governments are expected to increase their roles thoroughly in implementing these environmental policies. -
The China's Opening Schedule and the Impact on Industries After Joining WTO
The China's Opening Schedule and the Impact on Industries After Joining WTOPyoung seob YangAlready 15years have passed since China has been pursuing to enter into General Agreement on Tariffs & Trade (GATT). In the preliminary..
Pyoun Seob Yang Date 2000.12.30
Economic opening, Industrial policyDownloadContentSummaryThe China's Opening Schedule and the Impact on Industries After Joining WTO
Pyoung seob Yang
Already 15years have passed since China has been pursuing to enter into General Agreement on Tariffs & Trade (GATT). In the preliminary stages of becoming a member of World Trade Organization (WTO), China is yet subject to ratification by the National People's Congress but it appears that in 2001, joining WTO will be possible.
Under these given conditions, this book is aimed at providing a light on the opportunities and the threatening factors in doing business with China by analyzing the effects of trade and investment conditions with China and the effects on the China Industry after China's initial joining of WTO.
After joining WTO, China's economic structure will greatly change as the new reforms and open policies take into effect and move the economy next level up. The joining of WTO will reform China's domestic systems and policies and conform them to an international standard thus show expansion of China's market economy and rapid growth. Clarity of China's trade policies and foreign investment policies will elevate. Furthermore, as large-scale development strategies for the western regions are sought after regional imbalance will gradually be abridged.
After joining WTO, Industry structure of China will change as China's economy opens its markets. On joining WTO, China will lower tariffs and increase non-tariff items thus enabling foreign corporations and their goods and services to be viable in China. Furthermore, restrictions on the advancement of foreign goods and services to China in the section of finance, communications, commerce, distribution industry and the service industry will be lowered.
Joining of WTO will have a positive effect on the labor-intensive industry but will have an adverse effect on capital and tech-intensive industry. Textile industry and clothes industry will benefit most by the joining of WTO. In the case of automotive and communication industry, foreign companies will take over the market. Furthermore it is expected that rapid growth will be achieved in finance and service industry due to the increase of foreign investment.
China's joining of WTO can be regarded as a great opportunity and threat to us simultaneously. It will make China's market more accessible to us and at the same time we will be in fierce competition with other foreign companies. In considering the above, the Korean government needs to redirect trade policies and corporations should devise mid and long-term strategies in penetrating the Chinese market. (*) -
Mexico's Financial Reform and Its Suggestion
Mexico's Financial Reform and Its SuggestionSeon-Deog, JangSystemic banking crises reflect not only macroeconomic imbalances of a country, but also structural weaknesses in the incentive framework of the financial sector itself, s..
Seon Deong Jang Date 2000.12.30
Financial policyDownloadContentSummaryMexico's Financial Reform and Its SuggestionSeon-Deog, Jang
Systemic banking crises reflect not only macroeconomic imbalances of a country, but also structural weaknesses in the incentive framework of the financial sector itself, such as inefficient management, poor market discipline, poor prudential regulation and supervision, weak bankruptcy laws, ineffective judicial systems, lack of transparency and disclosure of information, weak corporate governance and a poor credit culture.
Given the large magnitude and multiple causes of a banking crisis, the resolution of a crisis is a complex process. Mexico has adopted a 'gradualist' approach with slow progress in almost all stages of crisis resolution. To a large extent, the Mexican strategy has been determined by the inability (or reluctance) of their authorities to rapidly recognize the magnitude of banks' problems at the early stages of the crisis. Unsurprisingly, the measures and programs implemented to resolve the crisis have provided temporary relief to banking institutions, but they have failed to rapidly address the causes of the banks' problems and restore the soundness and profitability of banking institutions. Based on the analysis carried out in this paper, there are some suggestions that can be drawn from the management and resolution of the Mexican banking crisis. Firstly, a centralized crisis management unit, with extraordinary power and adequate budgetary and human resources, a clear mandate to resolve a banking crisis, is essential for the successful management and resolution of a banking crisis. Secondly, to a large extent, the resolution of a banking crisis is a managerial problem. The resolution of a crisis will depend on the ability of a government to deliver rapid and sequenced responses, remove legal and administrative obstacles, create consensus around a strategy, implement unpopular measures, coordinate involved agencies, and resist opposition from affected interest groups. Thirdly, failure or reluctance to rapidly and realistically recognize the magnitude of banks' losses at the early stages of a crisis will likely lead to the prescription of insufficient or ineffective measures, which may provide short-term relief, but fail to address the underlying causes of the crisis. Fourthly, in order to maximize impartiality of government's decisions, explicit criteria should be established to judge and determine the viability of a financial institution, using the same criteria and procedures to the largest number of banks. Fifthly, an overall strategy that links all policies and programs towards the accomplishment of a coherent set of goals is crucial for the successful resolution of a banking crisis. Finally, one large injection of public funds may be more effective than gradual (several times) doses. Repeated use of fiscal resources to recapitalize banks, purchase non-performing loans and support debt restructuring might be counterproductive if banks and debtors perceive that the government will likely continue to assume banks' losses. -
A Study on the System Transformation and Capitalist Development in Russia -The Prospects of Putin's Neo-Statism-
A Study on the System Transformation and Capitalist Development inRussia - The Prospects of Putin's Neo-Statism Jehoon ParkThe study evaluates the system transformation and capitalist development in Russia and analyzes prospects o..
Jehoon Park Date 2000.12.30
Economic reformDownloadContentSummaryA Study on the System Transformation and Capitalist Development inRussia - The Prospects of Putin's Neo-Statism
Jehoon Park
The study evaluates the system transformation and capitalist development in Russia and analyzes prospects of President Putin's neo-statism based on the methodology of political economics for the purpose of reevaluating our policies toward Russia.
Russia faced a tough additional task of nation-building in addition to the tasks of system transformation i.e., political democratization and transition to a market economy, which is contrasting to the cases of other transition economies. A political progress was the adoption of the new constitution in 1993. Economically Russia became a capitalist state where non-state ownership prevails by means of completion of voucher privatization since 1994. Macro-economically exchange rates and price levels became stabilized since 1995 and Russia started to escape from the long trap of minus growth rates in 1997.
However, the moratorium of August, 1998 conversed the optimistic prospects of Russian economy at a blow. The crisis could be attributed to a number of causes. The most significant one was the system failures which include a non-working of newly established system and contradictions of the Russian-type crony or gangster capitalism. From this perspective, it could be said that the transition to a market economy or the system transformation in Russia has not been completed, at the same time Russian capitalism is in the stage of so-called primitive accumulation.
Putin's economic policy will be the centrist one between Chernomyrdin and Chubais and more reformist than Primakov. The tasks facing Putin are completion of system transformation and modification of contradictions in Russian-type capitalism. The last resort for Putin could be the revival of a state, which means creation of a solid federalism based on the rule of law and democracy.
The future of Putin's Russia depends on whether a Russian-type competitive capitalism could be established reflecting the tradition of a strong state, the characteristics of big-country and historical experiences -
On Devising a Model for Economic Cooperation among Pusan, Shanghai and Fukuoka
Despite geographical proximity and complementing industrial structure, the possibility of forming a formal organization in Northeast Asia at the supra-national level still seems distant. If cooperation at the country-level is diff..
Chang Nam Kim et al. Date 2000.12.30
Economic cooperationDownloadContentSummaryDespite geographical proximity and complementing industrial structure, the possibility of forming a formal organization in Northeast Asia at the supra-national level still seems distant. If cooperation at the country-level is difficult for historical, political or social reasons, then an alternative would be to expand regional cooperation at the city-level. The object of this study, therefore, is to devise a model for cooperation among port-cities of Pusan, Shanghai, and Fukuoka, which will lay a foundation for further cooperation among the three Northeast Asian countries.
This study selected Pusan, Shanghai, and Fukuoka as strategic cities for building Northeast Asian economic cooperation. Pusan and Shanghai are the largest port-cities of Korea and China ; Fukuoka, which well-complements the two port-cities in industrial structure, is only some 200 kilometers apart from Pusan. Because Shanghai and Pusan possess fast-growing automobile parts industries and the Northern Kyusu region (which includes Fukuoka) is one of Japan's largest automobile producing regions, this study proposes that an interdependent automobile parts industry among the three cities be created. In addition to industrial cooperation, this study proposes that there should be a division of labor in maritime transportation cargo. Shanghai has a geographical advantage in the central region of China and Southeast Asia while Pusan's advantage is in the Russian Far East, Northeastern China, and the Western coast of Japan. Therefore, this study proposes to develop Pusan as an international port, Shanghai from a national to international port, and Fukuoka from a regional to national port. For this purpose, this study proposes to create a Northeast Asian Maritime High Way, with Shanghai and Pusan as hub port of Northeast Asian trade, Tienjin, Dalian, Qingdao, Nigata, Hukuoka as feeder port.
Creating a common Local Free Trade Area (LFTA) among the three cities will be another important aspect for regional cooperation. There have been various proposals to create a full-scale Free Trade Area (FTA) among Korea, China, and Japan. However, national-level cooperation faces many harsh realities. Therefore, this study proposes that LFTA among the three cities should be created first, then the model for regional coopeation be expanded to the national level.
In conclusion, the dotted places of Pusan-Shanghai-Fukuoka in map will form a triangular line as trade and cooperation increase. The triangular line will expand into an area of cooperation resembling a butterfly. Pusan will be the body of this butterfly while Shanghai and Fukuoka the wings. If cooperation expands from the body, then we will witness a concentric cooperation model in Northeast Asia. -
A Study on the Usage of the Fund on the Claim between
A Study on the Usage of the Fund on the Claim between Asian Countries and Japan Jung Sik KimOne large problem for economic cooperation between South and North Korea is the underdeveloped social infrastructure of the North such as ..
Jung Sik Kim Date 2000.12.30
DownloadContentSummaryA Study on the Usage of the Fund on the Claim between Asian Countries and Japan
Jung Sik Kim
One large problem for economic cooperation between South and North Korea is the underdeveloped social infrastructure of the North such as railroads, roads, electricity, etc. In order to develop social infrastructure, North Korea needs huge funds; however, the problem is the source of these funds. One possible source is through the claims to Japan.
When North Korea receives the funds from Japan, the more important issue is the usage of the funds, because it is possible to achieve a high economic growth rate only by using these funds efficiently.
In this research, we analyze the usage of the funds in South Korea, Indonesia, Philippines, Myanmar and Vietnam. Furthermore, we suggest an investment strategy for North Korea and a strategy for South Korea.
The results can be summarized as follows. Most of the countries had invested the funds for the modernization of the social infrastructure and agricultural sector. Also, the funds had been used for industries which had a comparative advantage in each country.
According to these results, we suggest that North Korea give priority to the social infrastructure and agricultural sector. In advance, it is necessary that North Korea consider the experience of countries which already have received funds from Japan. Furthermore, the fund should be used not for political and military objectives but for economic purposes, and North Korea should make a complete plan for the management of the funds before receiving them.
South Korea should help in North Korea's successful negotiation with Japan, and cooperate in North Korea's efficient use of the funds, because it will reduce South Korea's unification costs in the near future.
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The European Union's Policies Towards a Knowledge-Based Economy and Information Society
The European Union's Policies Towards a Knowledge- Based Economy and Information SocietyHee Yul CHAI The European Union has recently set itself a strategic goal of becoming a dynamic and competitive knowledge-based economy and ..
Hee Yul Chai Date 2000.12.30
DownloadContentSummaryThe European Union's Policies Towards a Knowledge- Based Economy and Information Society
Hee Yul CHAI The European Union has recently set itself a strategic goal of becoming a dynamic and competitive knowledge-based economy and information society. Today, knowledge is increasingly important as a motor of innovation and growth, and the use of information technology contributes to the accumulation and diffusion of knowledge. In this respect, the strategic goal set by the EU is timely and pertinent. Furthermore, it is expected that the new economic and social model based on knowledge and information constitutes momentum to overcome the EU's deep-rooted, ywenty-year old unemployment problem. This study aims to provide an overview of the European Union's policies to promote the transition towards a knowledge-information society, as well as their implications for Korea.
The policy stance of the EU is ambitious and comprehensive. It tries to achieve both competitiveness and social cohesion. It emphasizes both the supply side and the demand side of the information society. However, it is doubtful if the financial sources are sufficient to support such an ambitious policy direction. On the other hand, an economic and social model based on knowledge necessarily implies a certain degree of revenue inequality of revenue and flexibility of the workplace. It is an open question as to how the EU will reconcile the necessary flexibility of labor market and the policy goal of social cohesion.
For Korea, the transition towards a new and feasible economic and social model is also a very important task. The concept of "productive welfare" introduced by the Korean government as one of the three pillars of economic and social policy has a lot to do with the EU's strategy towards a knowledge-information society. The case of the EU thus sheds some light on the way Korea might choose to go.
This study also extracts from the EU's experiences several practical lessons for Korean knowledge-information policies . The opinions of private economic agents shall be, as largely as can be, taken into account into the policy design and implementation. It is desirable to set up an incentive mechanism that can enhance peer competition between local governments. The government has an important role to play in the establishment of information technology standards. -
Ten Years of Economic Reforms in India: Achievements and the Tasks Ahead
Ten Years of Economic Reforms in India:Achievements and Challenges Chan-Wahn Kim Over the last ten years since the economic reforms of 1991, the Indian economy has experienced considerable changes. Almost all licens..
Chan Wahn Kim Date 2000.12.30
Economic reformDownloadContentSummaryTen Years of Economic Reforms in India:Achievements and Challenges
Chan-Wahn Kim
Over the last ten years since the economic reforms of 1991, the Indian economy has experienced considerable changes. Almost all licensing restrictions on the economic activities have been removed. The trade and foreign exchange regimes have been substantially liberalized. All these policies have been guided by an export as well as market oriented strategy of growth. These policies have significantly improved the competitiveness of Indian economy and accelerated the pace of integration of the domestic economy with the international economy. As a result, India's macro economic conditions have also improved substantially compared to the situation a decade ago.
Notwithstanding these notable achievements, the Indian economy is still beset by a number of grey areas which require urgent attention. This thesis underlines some critical issues and the tasks ahead. First, it is observed that the majority of the Indian low income classes have not witnessed the fruits of economic reforms, rather they have been adversely affected by the pressure on daily commodity prices. The economic reforms have increased the gap between the rich and the poor. This holds true across persons as well as different Indian states. The inter-state disparity has been widening, especially in the wake of the ongoing IT revolution where a handful of rich states with the requisite infrastructure have been the principal beneficiaries. This widening divide with strong social implications has the potential of snowballing into a major crisis challenging the very structure of Indian federal polity. Therefore, the policy makers should be seriously concerned with this critical matter.
Secondly, for achieving a sustainable growth, India should urgently reduce the fiscal deficits of the Central and State governments, and improve the efficiency of a large number of public enterprises. The most critical obstacle for reducing India's chronically high fiscal deficits and improving the efficiency of the public sector comes from the Indian politics. Since the middle of 1990s, India has witnessed political instability and coalition politics both at the Centre and states. The political situation has aggravated the politicians' tendency of announcing frequent populist measures that have caused a severe burden on the economy. Thus, political consensus for the direction and scope of economic reforms is a strongly felt necessity because the present political situation is likely to continue at least in the near future. This raises the very question of sustainability of reforms.
Thirdly, if the public savings are not improved, India would face serious resource constraint for investment in infrastructure and social services such as primary education and health, which form the basic source of sustainable growth. It is particularly emphasized that the Indian ruling elite should ensure that activities relating to human development accompany the process of economic reforms in order to achieve real development. -
A Study on the Politico-Economic Role of Russian Financial Industrial Groups: Situations and Prospects
A Study on the Politico-Economic Role of Russian Financial Industrial Groups: Situations and ProspectsGu Ho EomThere is much debate and criticism about whether or not Russia's business grouping is desirable to sustainable economic..
Gu Ho Eom Date 2000.12.30
Industrial structureDownloadContentSummaryA Study on the Politico-Economic Role of Russian Financial Industrial Groups: Situations and ProspectsGu Ho Eom
There is much debate and criticism about whether or not Russia's business grouping is desirable to sustainable economic development. From an optimistic perspective, financial industrial groups will raise effectiveness by lowering the transaction costs in the midst of a chaotic transition process. From a pessimistic point of view, ineffective investment policies, monopolistic acts, and the abuse of influence and authority due to the political-economic adhesion will worsen the economic crisis.
As of March 2000, officially registered financial industrial groups in Russia has reached 87, and unofficial financial industrial groups are estimated at about 110. While it is true that these financial industrial groups show relatively positive results, in particular the so called "oligarchical" condition that resulted from the adhesion of an unofficial financial industrial groups and the political power, is becoming the most important reform subject, even in the Putin Government. At this juncture, the object of this research is to forecast the future of Russia's financial industrial groups, through a historical analysis of the political-economic adhesion from a political perspective, as well as the organizational structure and efficiency of financial industrial groups from an economic perspective.
This research consists of 5 major parts. In Part II, the theoretical background of the formation of business groups is analyzed from a perspective of a combination of institutionalism and network theory. The characteristics of Russian financial industrial groups are explained from such theoretical basis, and from the perspective of the nature of the relationship between state and industry. The institutionalism divides into various perspectives, such as economic, political, sociological and other disciplines, analyzing Russia's financial industrial groups from each perspective, with a critical interpretation. In Part III, the concept and the types of Russia's financial industrial groups is explained. In this part, the theoretical, legal, and practical concept of Russia's financial industrial groups clarified, and its type is categorized according to a combined method, registration status, initiator, organizational structure, form of production integration, size of activity, etc., and the current status and problems are analyzed. In Part IV, the corporate governance and performance of Russian financial industrial groups are analyzed. In particular, their organizational structure and strategies, and relation between central company, soviet of executive manages, and financial institutions are analyzed. In Part V, the political-economic attachment of Russian financial industrial groups is analyzed with oligarchy as the central concept. Oligarchy will be defined in the Russian concept, and the formation and developmental process of oligarchy after 1993 will be analyzed, and finally the people's opinion and the future deployment of oligarchy will be forecasted. In the conclusion, the limitations and the future of the progress of Russian financial industrial groups is forecasted. -
Labor Policies in Central and Eastern Europe
Labour Policies in Central and Eastern EuropeEun-Ku Lee This study aims at examining the labour policies of Central and Eastern European(CEE) countries in the past ten-years of transition toward a market economy, and to pick out ..
Eun-Ku Lee Date 2000.12.30
Economic reformDownloadContentSummaryLabour Policies in Central and Eastern Europe
Eun-Ku Lee
This study aims at examining the labour policies of Central and Eastern European(CEE) countries in the past ten-years of transition toward a market economy, and to pick out some of lessons from their experiences applicable to Korea. According to its report published in 1999, EBRD has affirmatively evaluated the achievement of economic reform of the CEE countries in general. At the same time, EBRD has, however, recommended that the CEE countries should, in order to remedy some side effects and then to establish an integrated society, pay policy priorities on the redistribution of economic benefits generated from the economic transition.
Among the side effects, this study mainly concerns on unemployment and income differential. The labour strata, under the expectation on that they could become the winners in the economic transition, have sent political and social supports for the transition. However, the labour strata have become the biggest losers. Many of the labour strata have suffered from the decrease of real income and the unemployment. Each of countries in CEE, seriously realizing that the income differential and the unemployment could be the most dangerous challenges to the transition, implemented various unemployment support policies and social welfare programmes. At the first stage of economic transition, the governments in CEE mainly supported the unemployment through the payment of unemployment benefits. But they soon realized its limits for overcoming the unemployment problems. At the second stage, the governments, instead of the payment of unemployment benefits, strengthened active labour market policies. Among the programmes of active labour market policies, the vocational training programmes producted employment effects while the other programmes were hardly contributed to moderate unemployment increase.
On the other hand, while the trade union's movements have been weakened since the collapses of socialist systems, the governments have led the tripartitive negotiations. In regard to real income, the growth of the wage differential between the industries have escalated earnings inequality, and Gini-coefficients have been increased in all of the CEE countries. In order to ease the income inequality, the governments in CEE have introduced new social service programmes and have increased the government expenditure.
In conclusion, this study emphasizes that the CEE countries could be derailed to the bipolarized societies if they do not share the fruits of economic transition with the labour strata. And it also that the dead socialism might be revived if the interests of the labour strata would be continuously neglected in the future transition.