Sunday, November 18, 2018
Structural features of Germany and Korea
Monday, October 1, 2018
What proves a development economist's theory to be valid?
The excellence of the Korean economy in development and growth.
Saturday, September 15, 2018
How to avoid mismanagement of globalization?
The soil for the divided States of America has been fertilized by "mismanagement of globalization (Stiglitz 2017 in an interview with KBS."
Korea should stop following footsteps of the USA blindly in making policies on economy and setting up economic institutions.
Korea has created institutions that encourated individuals and firms to participate actively in the process of late-industrialization. As a result, it has succeeded in establishing prowess in manufacturing steels, petrochemicals, car, and electronics.
The key institution was the quasi-internal organization (Lee and Naya 1988, Lee 1992) - a regime of selective credit allocation to support the partnership between government and business groups for industrialization.
Manufacturing outgrew labor-intensive to capital-intensive industries. Meanwhile, politics has evolved from an authoritarian to democratic system. However, the stronghold of the government remained as the dominant economic policy paradigm.
Unbalances have emerged.
Note that the workers who have grown old in capital-intensive industries can be replaced by young and unskilled workers as well as robots unless they act collectively against managements.
Old workers with skills for handcrafts cannot be easily replaced.
A transition away from goverment-led growth strategy entails liberalization of controls. Financial deregulation under a centralized control often means that individuals are free to pursue self-interests at the cost of public interests.
How can a country let banks pursue self-interests to serve public cause? Germany provides an economic model that harmonizes individual self interests with public interests.
The keys to the model include (1) decentralized governance of government and two out of three pillars of banking system, (2) long-termism, and (3) regionalism.
A clue to forging ahead of advanced economy is to motivate and empower people to make innovations.
Banking industry shall be inhabited by an optimal mix of centralized institutions and decentralized institutions.
Korea should stop following footsteps of the USA blindly in making policies on economy and setting up economic institutions.
Korea has created institutions that encourated individuals and firms to participate actively in the process of late-industrialization. As a result, it has succeeded in establishing prowess in manufacturing steels, petrochemicals, car, and electronics.
The key institution was the quasi-internal organization (Lee and Naya 1988, Lee 1992) - a regime of selective credit allocation to support the partnership between government and business groups for industrialization.
Manufacturing outgrew labor-intensive to capital-intensive industries. Meanwhile, politics has evolved from an authoritarian to democratic system. However, the stronghold of the government remained as the dominant economic policy paradigm.
Unbalances have emerged.
Note that the workers who have grown old in capital-intensive industries can be replaced by young and unskilled workers as well as robots unless they act collectively against managements.
Old workers with skills for handcrafts cannot be easily replaced.
A transition away from goverment-led growth strategy entails liberalization of controls. Financial deregulation under a centralized control often means that individuals are free to pursue self-interests at the cost of public interests.
How can a country let banks pursue self-interests to serve public cause? Germany provides an economic model that harmonizes individual self interests with public interests.
The keys to the model include (1) decentralized governance of government and two out of three pillars of banking system, (2) long-termism, and (3) regionalism.
A clue to forging ahead of advanced economy is to motivate and empower people to make innovations.
Banking industry shall be inhabited by an optimal mix of centralized institutions and decentralized institutions.
Role of state gov - Division of labor between central and local governments- Germany and Korea
일자리가 최고의 노후복지를 가능하게 한다. 국민연금에 해당하는 social security and 퇴직연금에 해당하는 pensions 는 고용사회부가 맡는다 belong to the mandates of the Labor and Social Affairs Ministry.
중소기업 지원과 혁신지원에 관한 실질적인 정책을 수립하고 집행하는 정부기관은 한국에서처럼 중앙부처가 아니라 주정부이다. 중앙부서는 중소기업지원기금을 조성해서 지방정부나 은행을 통해서 간접적으로 지원하는 역할에 그친다. 현장실정에 대한 지식을 갖지 못하는 상부조직의 겸손한 역할분담이다.
주정부는 학습조직a learning organization이다.
주정부는 경제정책을 수행함에 있어 수족역할이 아니라 두뇌역할을 수행한다. 주정부 경제장관은 대학교수(Dr Prof) 출신이다.
"Competition is the engine of a market-oriented economy.
Competition forces the market participants to technical and cost-optimizing innovation."
"Every region has specific strengths, potentials and opportunities that need to be developed, released and above all exploited."
이젠 국가간 경쟁보다 지역간 입지경쟁이 더 치열하다. "the regions are in a position to position themselves externally - for example in international location competition." 주정부장관이 climate change대응방안협의를 위해 미국의 california주를 방문한다.
주정부 경제정책의 주된 책무는 다음을 포괄한다. 한국에서는 중앙정부가 수행하는 기능들이다.
Wirtschafts- und Wettbewerbsrecht
Regionale Strukturpolitik
NRW auf Messen
Unternehmensverantwortung
Marken-/Produktpiraterie
Innovation & Märkte
Digitalisierung
Mittelstand & Gründung
Standort NRW
Energie
Klimaschutz
예: State government of NRW in Germany
Leitmarkt-Strategie und Cluster in NRW: 선도시장에서 입지 구축을 위해서는 중소기업(학습조직)들의 학습능력을 드높여야 한다. 이를 위해서는 지역클러스터의 발전이 중요하다.
"The cooperation of all players from the economy, science, culture and politics along value chains is an essential component of the successful development of the lead markets of the future." All players come to each other to enhance productivity of the others.
Provincial governments in Korea have become a branch unit for execution of the policies made by the central government because most of the fiscal resources are bestowed upon the central government.
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