Nowadays the ultimate goals of the national econonic devetopnent. inaost countries tend to be the increase of income as vell as thebalanced distribution through the economic growth so as to ensure thewell being of every citizen.
Therefore, the rapid ...
Nowadays the ultimate goals of the national econonic devetopnent. inaost countries tend to be the increase of income as vell as thebalanced distribution through the economic growth so as to ensure thewell being of every citizen.
Therefore, the rapid economic growth should not be an end in itselfbut a mean to achleve the balanced incoae distrbution.
Over the last two decades, the economy of korea has maintained asustained growth, As a result, the GNP per capital of the country isnow approaching 5,000 Dollars. DespIte the high growth of the nationaleconomy owing to the Governaent's strong developaent policy, the distr-ibution of t.he gains to each person has been paid relatively very litt--le attention.
The situation is not so siaiple as the naive thought of policy maker-sand bureaucrats, who had hold the traditional viewpoints that theattainnent of high growth rate would solove the problem of incomedIstribution. Al+hough the steady economic development has cured thefundamental poverty, the country at persent is seriously afflicted bythe growing sense of poverty on psychological terns among people whothink theitselsves relatively poor, Such phenomenon, which may lead tocause such econonk: and social problems as dovnspirit of labor elements, social nonflicts and discontents, and confrontation among dIfferentsocial strata, has recently becone the nost grave issue in thepolitical, econoitic and social arenas of korea.
In this context, it Bust be said that to solve the problems relatingto income distribution is a prerequisite to ensure the sustained growthas well as the social stability of the country. For this, the nationaleconomic policy should place a top priority on addressing variouschronical inequities in economic practices and resolving iabalances.
However, the balanced distribution of incone may cause thedeterioration of the economic efficiency. Hence, harnonizing the twocont.radictory principles of the equity and the fairness presents animportant challenge.
On top of that, in order to improve the present unfavourablesituation of incoiBH distribution, the appropriate and applicablepolicies to income distribution needs to be formulated, which willeventually work out a very fair distribution system nationwide,undamaging the econoaic growth of the country and helping peopleBaxitnizing their development potential.
The major objective of this thesis is to review the size distributionof income based on the factors of production in relation with t.hegrowth, differentiating it from the functional distribution of incomewhich is based on the factors of production,
The fact uncovered in this thesis is that,despite the varioushardships both abroad and wlthin the country, the korean economy hasachieved a high growth to date, and the distribution of incone ingeneral has been dealt with on relatively fairer terms in comparison with that. of other developine countries.
However, in the '70's, the situation of income distribution of koreabecome aggravated; though, nowadays it is upturning but still shows ahigher degree of inequity that that of the '60's.
In conclusion, more powerful policy measures should be taken toensure a sound and efficient distribution of incnne nationwide.