6th Seminar Series on KDI School Blended Learning – “The Role of the Government and Politics in Economics Management”


SungHee Jwa, Professor, KDI School of Public Policy and Management


Le Dang Doanh, Senior Fellow of the Economic College, Hanoi National University (HNU)


Jin Park, Professor, KDI School of Public Policy and Management
Haiyoung Yun, Assistant Dean, Capacity Building Center, KDI School

The 6th series is applied via video conference at Jakarta Distance Learning Center, Universitas Indonesia on on July 25, 2014 from 14:00-15:30. This course discussed about The Role of the Government and Politics in Economics Management in Korea and it will be an opportunity for participants to stimulate critical thinking about development experience and to reflect on their respective economies as well.

For Korea’s economic development, the state including both government and politics should support the political ideology and the economic institutions and policies which help those who help themselves. Industrial policy should also be discriminatory in that it supports the higher market performers rather than the weak performers. Main message is “Egalitarian economic institutions and policies are the sufficient condition for economic stagnation while economic discrimination is the necessary condition for development.”, “egalitarian state is not development-friendly while economically discriminatory (based on the performances) state will be development-friendly.”, “Growth and development policies should be based on the principle of economic discrimination while social policy may be based on the egalitarianism.”

Once the discussion is complete, the program continued with a discussion by Le Dang Doanh, Senior Fellow of the Economic College, Hanoi National University (HNU). Here is the brief summary of this course :

Korean Industrial Policy

A rich and comprehensive overview presentation of Prof. Sung-Hee Jwa on various types and approaches of industrial policies (IDs), specially emphasizing Korean Industrial Policy of President Park. Key highlights are:

  • Basic principles of ID and highlighting the “economic discrimination on development policy”, motivating people
    to become self-help
  • Promoting competition and criticizing egalitarianism; the role of corporation emphasized as “a holistically emergent complex organisation“
  • “Successful IP countries turn out to be successful market promoter and also promote competition” and industries has to respond on the demand and not on the incentives of the government policy”
  • The important relation between the Government and Market, and also the essential role of “the rules of international trade” to the success of the IP. Park Chunghee’s IP is considered to be “the most successful case in the 20th century and even ever in the human history”
  • Prof. Sung-Hee Jwa also discusses the relation between democracy and economy and points out that “democracy and economy can not be a good friend”. On equality and development, he clearly criticizes egalitarianism.
  • Particularly, the part of “Global Economic Development Experiences discussed interesting analysis on the economic
    development of the mankind as well as Korean experiences on shared growth (growth of jobs, SMEs, export). The differentiation between shared growth and egalitarianism was remarkably indicated, “only the corporation friendly states can provide a shared growth for their people” and job creation

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