Conflicts between the Capital Region and the other region are too serious to let them go as they are, surrounding the issue of a future direction of the Capital Region Growth Management Policy. It has been criticized that the regulative policy measure...
Conflicts between the Capital Region and the other region are too serious to let them go as they are, surrounding the issue of a future direction of the Capital Region Growth Management Policy. It has been criticized that the regulative policy measures, taken by the central government for the last thirty years, towards the Capital Region have resulted in lowering the national and regional competitiveness. However, some policy makers and scholars still insist that such regulation should be maintained in order to reduce the regional disparities and to promote balanced development between the Capital Region and the Non-Capital Region. With this in mind, the central purpose of the paper is to propose some alternative measures which are effective in easing conflicts between the Capital Region and the Non-Capital Region, and further in strengthening the cooperative development between the two regions. The paper proposed that a new social contract is needed, between the Capital Region and the Non-Capital Region, to achieve national efficiency and regional equity simultaneously. The two regions should agree on the admittable levels of regional inequalities, the degrre of deregulation and the directions of both region's specialization. The paper further argues that the Capital Region should establish so-called 'Regional Development Fund' to financially help the retarded areas in the Non-Capital Region if both regions reach an agreement on the deregulation of the Capital Region. The fund could be financed by the capital gains which is expected from the development projects permitted after the deregulation policy toward the Capital Region.