Transcript 슬라이드 1 - Presidential Council on National Competitiveness

Current Status of National Competitiveness
5-Year Vision for National Competitiveness
Policy Implications
The Way Forward: A Small & Strong Gov.
Current Status of National Competitiveness
5-Year Vision for National Competitiveness
Policy Implications
The Way Forward: A Small & Strong Gov.
Ⅰ-1. IMD World Competitiveness
Rankings
 Coverage: 55 countries in 2008
 Assessment:
 Four factors of competitiveness
Economic Performance, Government Efficiency,
Business Efficiency, Infrastructure
 331 criteria (208 statistical criteria, 123 survey data)
* 77 out of 208 statistical criteria are for background information only
 2008 Rankings
Korea
Japan
China
Taiwan
Hong Kong
Kong
Singapore
31
22
17
13
3
2
Ⅰ-2. Trend of Korea's National
Competitiveness
Ranking
Year
Infrastructure
Overall
Business
Efficiency
Government
Efficiency
Economic
Performance
Ⅰ-3. Sectoral Weaknesses in
Korea's Competitiveness
Korea's Weaknesses by 4 factors of competitiveness
(out of 55 countries covered in 2008)
Factor
Economic
Performance
Government
Efficiency
Business Efficiency
Infrastructure
Overall
Ranking
47
37
36
21
Statistical
Criteria
Survey
Criteria
-Cost of living (55)
-FDI (% of GDP, 54)
-Tourism receipts
(% of GDP, 52)
-
-
-Pupil-teacher ratio
for primary
education (50)
-Labor regulations
(54)
-Immigration laws do
not prevent foreign
labor employment
(54)
-Legal and regulatory
framework (53)
-Public sector
contracts
open to foreign
partners (53)
-Price controls do not
affect pricing of
products (53)
-Labor relations (55)
-National culture open to
foreign ideas (55)
-Corporate boards
supervise the
management of
companies (54)
-Technological
regulation supports
business development
and innovation (55)
-University education
meets the needs of a
competitive economy
(53)
-Environmental laws
hinder businesses (50)
Current Status of National Competitiveness
5-Year Vision for National Competitiveness
Policy Implications
The Way Forward: A Small & Strong Gov.
II. 5-Year Vision for National
Competitiveness
Status Quo : Maintain Current Development Trend
Ranking in 5
years
Government
Efficiency
Business
Efficiency
28
Gain 5
ranks
Gain 5
ranks
Economic
Performance
Infrastructure
Potential growth
growth rate in 5
5 years
Gain 2~3 Gain 2~3
2~3
2~3
ranks
ranks
4.2%
Take-off : Implement Unreserved and Fundamental Reform
Ranking in 5
years
Government
Efficiency
Business
Efficiency
Economic
Performance
Infrastructure
e
Potential
growth rate in
in 5 years
15
Gain 30
ranks in
weak areas
Gain 30
ranks in
weak areas
Gain
20+
ranks
Gain 5
ranks
6~7%
*regulation, etc
*labor relations,
etc
Current Status of National Competitiveness
5-Year Vision for National Competitiveness
Policy Implications
The Way Forward: A Small & Strong Gov.
III-1. Unreserved deregulation
 Realignment into a system of‘good regulations’
- Achieve regulatory objective + Reduce regulatory costs
* Total regulatory costs in 2007 (SERI Proj.) :
KRW78.1 trillion (8.7% of GDP)
 Key regulations by sectors have been reformed until the 4th
meeting of the PCNC
-
Opening a new business: improved opening process
Financial sector: set basic directions for financial deregulation and
improved entry regulations
Land, sites: reformed regulations regarding industrial complexes, reduced
prices for industrial complex sites
FDI: Promoted FEZs
Foreign labor: Expanded efforts to attract global skilled labor force
Business environment: Alleviated on-site problems of manufacturing SMEs
III-2. Advancement of Law and Order
• Rule of law is a key factor of social capital
→ serious effect on economic growth
• Korea's rule of law is at the lowest level among OECD countries: negative effect on the
economic growth rate by 1%p (KDI)
• Recent candlelight demonstrations : Direct costs of KRW 570.8 billion, Indirect costs of
KRW 1.352 trillion (KERI)
• First, foster a law-abiding environment
• Establishment of a‘good regulations’framework through regulatory reform
• An effective conflict management system also needs to be established
• Next, strict law enforcement on illegal actions
→ Advancement in law and order
* Analysis of Korea's demonstrations and protests(1989∼2003) show that demands through
illegal demonstrations (29.1%) were more likely to be attained than through legal
demonstrations(25.2%)
→ Incentives for illegal demonstrations remain
III-3. Public Sector Innovation
Trend of
total tax추이
burden
국민부담률
(%) ratio (%)
 Korea's size of government:
small among OECD members,
but increasing rapidly
40
OECD Average
OECD평균
국민부담률
35
Total Tax Burden
(Incl. Quasi Tax)
국민부담률+부담금(률)
30
25
- Continued pressure for public
20
1998 1999 2000 2001 2002 2003
sector expansion is expected
taking into account rapid population aging and increasing
demand for welfare
2004 2005 2006 2007
 Public sector innovation is essential in establishing a sustainable
foundation for economic growth
- Continued devolution of manpower, organization, and functions to the
private sector
* Government : Deregulation + Outsourcing → Small Government
* Public Entities : Privatization, Restructuring → Enhanced efficiency and service
- Limiting increases in the size of public finance
III-4. Cooperative Labor Relations
 Corporate social responsibility
- Transparent corporate governance and strengthened noblesse
oblige are prerequisites to strict law enforcement and
cooperative labor relations
1500
 An advanced institutional
framework to establish peaceful
labor-management culture
- Recently, labor disputes and
lost work days are on the decrease
Labor disputes (no.)
노사분규건수(건)
1000
500
Lost work days
근로손실일수(천일
)
0
2004
2005
2006
- To foster a cooperative labor-management culture, an law and
principle-based environment is needed
 Put an end to unfair labor practices
 Adhere to the‘no work, no pay’principle
 Institutional advances such as long-term collective agreements
* Duration of collective agreements : Korea(2 years max.),
Japan(3 years max.), France(5 years max.), US(2∼3 years)
2007
III-5. Strengthened Policy PR
 Significance of strengthening policy PR and public communication
* In 2008 IMD World Competitiveness Rankings:
Statistical criteria ranking (23) vs. business survey ranking (36)
→ Overall ranking: 31
 Active PR efforts though various channels and methods are needed to
reach policy customers
- Increase PR though media such as TV, newspapers, and internet portals
- Strengthen customized PR (Policy Customer Relationship Management)
Current Status of National Competitiveness
National Competitiveness in 5 Yrs: 2 Scenarios
Policy Implications
The Way Forward: A Small & Strong Gov.
IV. The Way Forward:
A Small & Strong Government
□ Current trend of Korea’s public expenditure and regulation (Yellow Path)
□ Achieving the ’Take-off’(Mid-Expenditure, Low Regulation) Scenario (Red Path)
60
-
50
-
Small & Strong Gov.
①Regulatory reform
②Public sector innovation
③Cooperative labor relations
2.0
Target 40
Path
2.5
-
Current Trend
30
-
-
1.5
-
-
1.0
-
-
0.5
3.0