Korea’s Paradigm Shift for Sustainable and Inclusive Growth: A Proposal
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Summary:
Korea is facing mounting economic challenges. Productivity growth has been on a trend decline amid demographic headwinds, while the societal demand for inclusive growth has been on a steep rise. Furthermore, the government-led unbalanced growth model—which served Korea well in the past—has become less effective and politically palatable in recent years. As such, Korea needs a major paradigm shift to embark on a new sustainable and inclusive growth path. But policy response has been modest at best with no major reforms being implemented over the past two decades. We propose a paradigm shift in Korea’s economic framework, involving a simultaneous big push for greater economic freedom and stronger social protection within the parameters set by long-run fiscal sustainability. We also provide a detailed account of structural reforms to boost economic freedom and sustainable funding plans for stronger social protection.
Series:
Working Paper No. 2017/260
Subject:
Education Income Income inequality Labor Labor markets Macrostructural analysis National accounts Structural reforms
English
Publication Date:
November 20, 2017
ISBN/ISSN:
9781484329931/1018-5941
Stock No:
WPIEA2017260
Pages:
41
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