Development Centre Studies

Centre de Développement de l’OCDE

ISSN :
1990-0295 (en ligne)
ISSN :
1563-4302 (imprimé)
DOI :
10.1787/19900295
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This series of monographs from the OECD Development Centre covers development issues generally and in some cases issues in specific countries. It  includes Angus Maddison’s books containing long-term historical estimates of GDP for various areas of the world.

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Industrial Policy and Territorial Development

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Industrial Policy and Territorial Development

Lessons from Korea You do not have access to this content

Centre de Développement de l’OCDE

Anglais
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Auteur(s):
OCDE
Date de publication :
16 mai 2012
Pages :
152
ISBN :
9789264173897 (PDF) ; 9789264173514 (imprimé)
DOI :
10.1787/9789264173897-en

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This report reviews the Korean catching up and it analyzes the recent reforms which have been put in place to address the territorial dimension in the design and implementation of industrial policies, with a view to share knowledge and policy experience with emerging and developing economies. Korea is a well known success case, but less is known about the efforts and reforms introduced to factor in the territorial dimension in its national development strategy.  

The report identifies the advances and challenges of the Korean approach to regional development. Results show that beside the specificities of the Korean experience it conveys several lessons for developing countries: i) Planning actions on a multi-annual basis is essential to achieve policy goals in fields such as industrial and regional development where policy outcomes depend on structural changes that will require long term horizons to be materialised and where coordination across several ministries (such as education, infrastructure and access to finance) is needed. ii) It is important to establish mechanisms that ensure a high level political support to regional development as well as to target resources to regions. iii) Supporting industrial development in regions requires designing specific programs beyond administrative boundaries. iv) The space for bottom up initiatives and regional empowerment has to be matched by a gradual approach to build the necessary capabilities at the regional level.

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    Foreword and Acknowledgements
    The relationship between industrial and technological catching up and territorial development is a major economic development puzzle, both in theory and in practice. Industrialisation and technological catching up are key ingredients for national development; but there are no automatisms that guarantee that the benefits will be equally distributed across the territory and the society, and that positive backward and forward linkages will be established, thus fostering an inclusive and more resilient production structure. How to support industrialisation avoiding territorial and social exclusion is a common concern for OECD and non-OECD economies. There will be no unique response to this challenge, but there are good policy principles that can be shared and lessons to be learned from the experience of other countries.
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    Country profile: Korea
    Korea is a unitary country, with elected regional authorities since 1994. The capital of Korea is Seoul. Administratively, Korea is divided into seven metropolitan cities (Seoul, Incheon, Daejeon, Gwangju, Daegu, Busan, Ulsan) and nine provinces (Gyeonggi, Chungbuk, Chungnam, Jeonbuk, Jeonnam, Gyeongbuk, Gyeongnam, Gangwon, Jeju). In the document, provinces and metropolitan areas are referred to as provinces. Adjacent provinces and metropolitan areas are referred to as "regions" because they share a common culture and history. These regions are not administrative. The lower administrative level includes 232 bodies including Cities, Counties and Autonomous Districts.
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    Acronyms and abbreviations
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    Preface
    The OECD Development Centre, as a policy dialogue platform between OECD and non-member countries, undertook this study with the aim of sharing knowledge with developing and emerging economies from the Korean experience in industrial and territorial development. Emerging and developing economies are heterogeneous. They differ in assets, resources and institutional capabilities; but there are common features of the development process that make knowledge sharing a valuable exercise for policy making.
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    Executive summary
    Korea is a well-known case of successful catching up achieved through an effective government-led export-oriented strategy. It is one of the few countries in the world that has managed radically to transform its domestic economy from one based on agriculture to that of a leading world industrial power, with a constant increase in income per capita and a high growth pattern. The Korean catching up has been the result of a deliberate national development strategy which fostered industrialisation in heavy and chemical industries through sequenced and complementary policy interventions targeting the creation of domestic industrial capacities (through a mix of export promotion and import controls), development of education and skills, infrastructure building and management of capital markets.
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    The success of Korea's "catching up" strategy
    This chapter presents an overview of long-term trends of economic and industrial indicators in Korea. It shows the successful results of the early catching up strategy in terms of growth, industrial transformation, export orientation, and development of skills and technologies. This chapter adds the regional development dimension to the traditional analyses of Korea’s catching up. It illustrates the Korean regional development patterns, highlighting the trends over the last two decades.
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    Regional development policy in Korea
    This chapter reviews the evolution of regional development policy in Korea. The chapter identifies three phases in the Korean regional development policy and describes major changes in the governance and in the policy mix. It draws attention to the relatively recent emergence of the regional debate in the country by comparison with other OECD economies and it stresses the rapid catching up in the policy paradigm and the shift from balanced growth to competitiveness.
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    What can be learned from the Korean experience?
    This chapter draws lessons from the Korean experience and identifies what can be learned from the catching up strategy and the progressive integration of regional concerns into the country’s growth strategy: from the evolution of regional development policy, and the recent paradigm shift towards regional competitiveness, to the current challenges that Korea is facing to advance further in regional development. The chapter concludes by underlining that beyond sharing knowledge on general lessons, there is no single response to development challenges. Each country needs to identify its current opportunities and challenges, establish its own priorities and develop its own strategy, mixing continuity in effort with experimentation of new policies to address new challenges, as Korea has been doing.
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    Knowledge sharing for development
    The OECD Development Centre study on Industrial Policy and Territorial Development: Lessons from Korea addresses a key issue in the Brazilian debate on development: how to foster growth by promoting at the same time social and territorial inclusion?
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