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Industrial Policy and Territorial Development

Lessons from Korea

image of Industrial Policy and Territorial Development

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.

English

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What can be learned from the Korean experience?

OECD Development Centre

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.

English

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