Public Finance in Korea since Economic Crisis
- Public Finance in Korea since Economic Crisis
- Yoo, Ilho
- Issue Date
- Series/Report no.
- KDI Working Paper Series;07-19
- Ten years have passed since the economic crisis hit Korea in 1997. To
overcome the crisis, Korean government adopted many drastic reform
measures mostly recommended by IMF. Since most of its reform measures were
recommended by IMF, this policy stance to “escape” from the economic crisis is
regarded as “neo-liberal”. Particularly, in the area of public finance, the
principle of the “small government” was actively pursued. After two years,
however, the policy stance began to be changed. Number of civil servants has
increased. The size of the government increased as well, largely due to the
increase in the welfare expenditure. Many new welfare programs, most
important among them is NBLSS, has been introduced. Size of the
government debt has increased. Do all these movements indicate that Korean
government in last seven years has tried to be a big government? Although it
is too early to tell, there is the strong evidence that the idea of European welfare
state has prevailed.
- Files in This Item:
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.