경제발전하의 안정화정책 : 제1차 경제개발 5개년계획의 경험에 비추어 With Respect to the First-Five Year Economic Plan = Stabilization Policy Under Economic Development

다국어 초록 (Multilingual Abstract)

To maintain economic stability and sustained economic growth is the main objectives of our economic society. However, it is hard to expect that these goals can be always realized any time and anywhere. In fact, economic policies to implement these two objectives seem to be highly complementary by its intrinsic nature, yet sharply conflicting each other in practice. Our experiences indicate that some country can attain a rapid stable growth; some country, by intensifing these conflicts, yet obtain a rapid growth of an economy. It is also learned that in some countries, the - primary emphasis is placed on stabilization policies at the expense of economic growth.
Amongst these alternatives of economic policies, what is the best one depends entirely on the social welfare function and the ultimate value towards it taken by decision makers of economic policies. Nevertheless, a generalization is easily made that stabilization policies are the primary goal of economic policies where wealth is so much accumulated in advanced economies while the $quot;growth-first$quot; policies are the primary targets in developing nations. Such a generalization might seem to be justifiable. However, our experiences indicate that such an generalization is, in fact, extremely difficult one to make. One of the main reasons is that unstabilizing factors are expected to be inherent in developing countries more than in advanced countries, because of the fact that there exists growth potentials in underdeveloped economies.
Such inherent unstabilizing factors are as follows.
1. Unstabilizing effects are easily expected when the pattern of wealth composition of an economy is changing.
2. When investment demand is increasing, inflationary pressure might be taken place.
3. There is a widening gap between the living standard and increase in the level of productivity.
4. In a rapidly growing economy, structural changes are easily expected to be occurred.
5. When development plans are formulated with regionally bias within an economy, this might lead to create unstabilizing effects.
6. If the government takes discretionary policies of development plans, this leads to create unstabilizing effects in an economy.
Therefore, unless the above effects were completely eliminated or minimizing such effects inherent in a process of economic development, self-sustained economic growth of an economy can hardly be expected. Let us consider stabilization policies necessary to eliminate the above effects.
1. When the pattern of wealth composition of an economy is changing, the government should control investment activities. Therefore, selective investment-control policies are required to stabilize an economy.
2. When an economy is under inflationary pressure, basically caused by an increase in investment demand, expansionary policies should be curtailed by the government to use monetary and fiscal measures properly.
3. In order to wipe out the gap between the living standard and the increase, in the level of productivity minimum standard of living on the part of wage-earners should be maintained.
4. In fact, structural change of an economy is primarily concerned with long-run aspects of economic development. Therefore, the scales of operation in medium-size industries should be changed in order to be optimized.
5. In order to eliminate the regional difference of development it is necessary for the government to carry out decentralization policies of development so that potentiality of medium size industries should be fully utilized. Income equalization policies through fiscal measures are also necessary to increase effective demand of the economy as a whole.
6. In order to mitigate discretionary policies taken by the government, policy criteria should be rationalized in line with economic reasoning. Once a criteria is specified, policy instruments reqnired for the criteria should be used efficiently. Above all, it is needless to say that a set of development projects and policies should be coordinated.
I have pointed out the measures necessary to maintain a stable growth in the context of Korean economy. In underdeveloped countries, to make realization of all such measures into effect can be hardly expected, because of lack of administrative techniques of government in underdeveloped countries to implement such measures of development planning. Yet, efforts trying to pay to implement such measures by our government will certainly contribute to maintain economic stability and economic growth of our economy.