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Government Reform:  Lesson’s from Korean Experience Public Officials Capacity Building  Training Program  for Government Innovation Seoul ,  December 7, 2007 Jin PARK, Ph.D. KDI School of Public Policy and Management
KDI School of Public Policy and Management Seoul, December 7, 2007 D adang Solihin Delegation Head Public Officials Capacity Building Training   Program for Government Innovation
Introduction of KDI and KDIS ,[object Object],[object Object],[object Object],KDI ,[object Object],[object Object],[object Object],[object Object],[object Object],KDI School
PARK, Jin 1991  : Ph.D. in economics, Univ. of Pennsylvania 1992~1998  : Research fellow, KDI 1998~2001  : Director, Administrative Reform Team,   Ministry of Planning and Budget  2001~2004  : Associate Professor,  Director for Knowledge Cooperation, KDI School Currently Professor, KDI School Presenter
[object Object],[object Object],[object Object]
Four success factors behind Korea’s Economic Development  ‘ I can do (or my kids can do) sprit’ : education, hardworking …  Competition and incentive : export, Saemaul Movement … The role of the government   Abundant labor with (potentially) good skill
Capability for Development  What is the role of the Government Reform in Korea’s early economic development? ,[object Object],[object Object],[object Object],- Willingness to response to social needs - Capacity to set the right visions and strategies  - Ability to build bureaucracy to implement the strategies - Ability to mobilize the resources - Capacity to generate and implement right policies to achieve the visions set by the political leaders
1. Political leadership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2. Concentration of information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3. R&D  ,[object Object],[object Object],[object Object],[object Object],[object Object]
4. Anti-Corruption ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
5. Utilize Civil Servants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Korean Government’s Transition 1960s 1980s Since 1997 Rapid Economic Growth through Government  Intervention Frequent Intervention and Over-regulation of the Private Sector Open Economic System Government as a Fair Coordinator
Korea’s Economic Development Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Is this a right model in Korea in 1990s?
Growth Decomposition of S. Korea   Real growth rate Irregular factors Pot. growth rate(A+B ) Factor inputs(A) Labor Capital TF Productivity(B) Economies of Scale Resource allocation Technological prog. 1971~1980  1981~1990  1991~ 2000   7.4 -1.0 8.4 5.6 3.2 2.4 2.8 1.4 0.8 0.6 (%) 6.1 -0.7 6.8 3.4 1.5 1.9 3.4 1.5 0.7 1.2 8.6 1.0 7.6 4.6 2.5 2.1 3.0 1.4 0.7 0.9 Is Government intervention effective for tech. progress?
Changes in the growth environments ,[object Object],[object Object],[object Object]
Consequences of Government’s Intervention ,[object Object],Development of a market economy was seriously hindered. The government became increasingly bloated and unresponsive to demands for reform. The economy was hampered by collusive ties between government and businesses, arbitrary regulations and corruption.
Background of economic crisis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Crisis and Reforms ,[object Object],the need to establish a  firm foundation upon which to rebuild the economy - To start a new as a government  that sets an example for other sectors of the society to follow. - To start a government that truly  serves the public >>> The government reform  had to be implemented with  utmost priority.
Efforts for Government Reform after the Crisis Efforts of previous  Administrations Efforts after the crisis Past attempts were partial  in nature, whether they  focused on government  reorganization, privatization,  or deregulation. The reform drive was almost unprecedented in its comprehensiveness, proceeding  simultaneously on all fronts,  Including both central and local  governments, public enterprises, and quasi-government organizations.  The only exceptions were the political and judiciary divisions.
New Role of the Korean government ,[object Object],[object Object],To maximize private sector autonomy and initiative, government intervention and regulation has been sharply reduced, superfluous government functions has been abolished, reduced, or transferred to the private sector. The government’s role in protecting the weak, establishing a social safety net, market supervision and environmental protection, among others, has been substantially strengthened.
[object Object],[object Object],[object Object]
What is Public Sector? Central Administration + Branch agencies Local Administration  Government Affiliated Org. Local GAO State owned-enterprises State Invested Enterprise Government funded org. Government-commissioned org. Government-subsidized org.  Education Agency National University What is the most progressed and the most retarded sector in terms of the public reform in your country?
Two types of reform Which is more appropriate in your country?  Passive Reform  Spontaneous Reform Strength Overcome of internal resistance Outsider participation  Broader scope Radical Reform Top leader ’ s reform agenda High feasibility Utilize insider knowledge Broad participation Persistence Weak -ness Low feasibility Knowledge of external force Subject to political change Intra-institutional problem Hard to overcome inertia Possibility of manipulation
Comparison of Two government reforms Kim  Administration ,[object Object],[object Object],[object Object],Roh  Administration ,[object Object],[object Object],[object Object]
Evaluation Recognition Implement The four steps of reform Plan Achievement Index  Institutionalization Goals Constraints Strategy Adaptive implement  Overcome of resistance Objective of evaluation Feed back of evaluation Which step is least effective in your country?
The obstacle of reform(1):  No  trigger   Quality Control Branding  Strategic Partnerships Outsourcing What is the case in your country? -  Incognizant of problem High concentration, bureaucratic org.  -  Implement: High classification   The characteristic of  Organization ,[object Object],[object Object],[object Object],[object Object],The feature of  Reform plan ,[object Object],[object Object],[object Object],[object Object],Condition of  Support
The obstacle of reform (2): Captured reformer Quality Control Branding  Strategic Partnerships Outsourcing What is the case in your country? -  Assimilation -  Corruption -  Weak intellectual capacity of reformers Attitude and Ability of Reformers ,[object Object],[object Object],[object Object],[object Object],Weak Institutional  arrangement
The obstacle of reform (3): Resistance Quality Control Branding  Strategic Partnerships Outsourcing What is the case in your country? -  Political Instability, Social conflict -  Low credibility to reformer -  Unclear goal and contents of reform -  Inappropriate reform process -  No conflict resolution process  Situational Condition ,[object Object],[object Object],[object Object],[object Object],[object Object],Psychological Factor
The solution for Resistance Quality Control Branding  Strategic Partnerships Outsourcing What should be emphasized more in your country? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Normative Way: Persuade   ,[object Object],[object Object],[object Object],Compulsory Way ,[object Object],[object Object],[object Object],Technical Way: Negotiate and Compromise
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],Comparison of reform-leading organizations   Under President Kim Under President Roh PBC MPB MOGAHA PCGID Under the president O X X O Full-time and permanent  O O O X Focus on Reform O X X O Organizational Flexibility O X X ∆ Mix with Private and Public O ∆ X O Working relation with the other organizations - - X X
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluation Criteria by outcome ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Government Reform: Lesson’s from Korean Experience
“ The innovator makes enemies of all those who prospered under the old  order, and only lukewarm support is forthcoming from those who would  prosper under the new.”  --- Machiavelli  Thank you
Dadang Solihin currently  is Director for System and Reporting of Development Performance  Evaluation -Bappenas. He  holds MA degree (Economics), University of Colorado, USA. His  previous post is Head, Center for Research Data and Information at DPD Secretariat General as well as Deputy Director for Information of Spatial Planning and Land Use Management at Indonesian National Development  Planning Agency (Bappenas).  ,[object Object],[object Object],[object Object],Dadang Solihin’s Profile

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Government Reform: Lesson’s from Korean Experience

  • 1. Government Reform: Lesson’s from Korean Experience Public Officials Capacity Building Training Program for Government Innovation Seoul , December 7, 2007 Jin PARK, Ph.D. KDI School of Public Policy and Management
  • 2. KDI School of Public Policy and Management Seoul, December 7, 2007 D adang Solihin Delegation Head Public Officials Capacity Building Training Program for Government Innovation
  • 3.
  • 4. PARK, Jin 1991 : Ph.D. in economics, Univ. of Pennsylvania 1992~1998 : Research fellow, KDI 1998~2001 : Director, Administrative Reform Team, Ministry of Planning and Budget 2001~2004 : Associate Professor, Director for Knowledge Cooperation, KDI School Currently Professor, KDI School Presenter
  • 5.
  • 6. Four success factors behind Korea’s Economic Development ‘ I can do (or my kids can do) sprit’ : education, hardworking … Competition and incentive : export, Saemaul Movement … The role of the government Abundant labor with (potentially) good skill
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Korean Government’s Transition 1960s 1980s Since 1997 Rapid Economic Growth through Government Intervention Frequent Intervention and Over-regulation of the Private Sector Open Economic System Government as a Fair Coordinator
  • 15.
  • 16. Growth Decomposition of S. Korea Real growth rate Irregular factors Pot. growth rate(A+B ) Factor inputs(A) Labor Capital TF Productivity(B) Economies of Scale Resource allocation Technological prog. 1971~1980 1981~1990 1991~ 2000 7.4 -1.0 8.4 5.6 3.2 2.4 2.8 1.4 0.8 0.6 (%) 6.1 -0.7 6.8 3.4 1.5 1.9 3.4 1.5 0.7 1.2 8.6 1.0 7.6 4.6 2.5 2.1 3.0 1.4 0.7 0.9 Is Government intervention effective for tech. progress?
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Efforts for Government Reform after the Crisis Efforts of previous Administrations Efforts after the crisis Past attempts were partial in nature, whether they focused on government reorganization, privatization, or deregulation. The reform drive was almost unprecedented in its comprehensiveness, proceeding simultaneously on all fronts, Including both central and local governments, public enterprises, and quasi-government organizations. The only exceptions were the political and judiciary divisions.
  • 22.
  • 23.
  • 24. What is Public Sector? Central Administration + Branch agencies Local Administration Government Affiliated Org. Local GAO State owned-enterprises State Invested Enterprise Government funded org. Government-commissioned org. Government-subsidized org. Education Agency National University What is the most progressed and the most retarded sector in terms of the public reform in your country?
  • 25. Two types of reform Which is more appropriate in your country? Passive Reform Spontaneous Reform Strength Overcome of internal resistance Outsider participation Broader scope Radical Reform Top leader ’ s reform agenda High feasibility Utilize insider knowledge Broad participation Persistence Weak -ness Low feasibility Knowledge of external force Subject to political change Intra-institutional problem Hard to overcome inertia Possibility of manipulation
  • 26.
  • 27. Evaluation Recognition Implement The four steps of reform Plan Achievement Index Institutionalization Goals Constraints Strategy Adaptive implement Overcome of resistance Objective of evaluation Feed back of evaluation Which step is least effective in your country?
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 39. “ The innovator makes enemies of all those who prospered under the old order, and only lukewarm support is forthcoming from those who would prosper under the new.” --- Machiavelli Thank you
  • 40.