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김성배(金聖培),유재미(兪在美) 한국지방자치학회 2011 韓國地方自治學會報 Vol.23 No.3
Market-Preserving federalism is a type of decentralized governance system which purport to solve the fundamental political dilemma, i.e., a government strong enough to protect property rights and enforce contract may be able to confiscate the wealth of Nation. The student of the MPF (Market-Preserving Federalism) suggests five distinctive conditions which characterize how federal states allocate power among national and sub-national government: hierarchy of government, autonomy of sub-national governments, common market, hard budget constraints and institutionalization of authority. They also insist that federal state that have all or nearly all five conditions - Market-Preserving federalism - have experienced sustained long-term growth. In this study, we attempt to evaluate whether the Korean decentralization system could be Market-Preserving with respect to the five conditions. The evaluation reveals that the Korean system, due to its centralized governance tradition, fail to satisfy nearly all five conditions. We conclude this study by suggesting that some reforms are necessary for the Korean system to be more Market-Preserving.