The purpose of this study is to comprehensively examines the policy of local decentralization through some problems of decentralization reform in Korea. The reason is that a situation for implementing decentralization reform is not good enough to deal with fundamental issues(management of organization, human resource, finance, and legislation) in relation to the autonomy of local government. Under the circumstance, this study also evaluates the policy of integration or abolition for the local small business office, as a special local agency. Specifically, this study examines the meaning of local autonomy and some determinants, as pre-conditions, to obtain an effective local decentralization. Secondly, the research makes a comparison each role and function to support local small business between local small business office and local government. Thirdly, the research employs both a survey questionnaire to evaluate the satisfaction of customers or the quality of service, and case study research for small business supporting system through U.S.A, Japan, and U.K. The significance of this study is that it brings conceptual clarity to the dialog on improvement of decentralization reform and it represents an important research source for the development of further research on the role and function of local small business office, dealing with new small business supporting system based on the formation of local governance.
This paper aims to improve local financial system for socio-economic development at local and regional levels. It has been widely known among financial experts and planners that local financial system is inadequate to meet the increasing needs for local governments to provide various local services. Local financial system needs to be improved particularly for the achievement of decentralization and regional balanced development, which have been selected as major national agenda of the Roh Mu-hyun administration. The first half of this paper reviews current status and problems of local finance in terms of its relative size against national finance, ratio of local revenue against total local finance, and eff iciency in using local finance for regional development. It suggests that unlike many previous arg uments, the major problem of local finance is not its over-all size but its inequal distribution among regions and its inefficient use for regional development. The paper introduces the concept of local financial coefficient to analyze the inequality of local financial capability, particularly between the Capital region and rest of regions in Korea. It shows that the national finance has been overly allocated in the Capital regions while it has been insufficiently allocated in other regions. Furthermore, this paper clearly indicates that current proposals for the improvement of local financial system are likely to widen regional inequalities and weaken national financial capability to promote regional balanced development. The second half of this paper proposes some policy prescriptions to improve local financial system in the context of balanced regional development. It suggests that it is necessary to expand local financial capability to promote regional development projects in less prospe rous regions and to establish a regional governance system to coordinate regional development projects between the central and local governments for the efficient use of financial re sources at local and regional level.
The gap between Seoul metropolis and the local satellites has been widening in Korea. The crisis of the regional economies is mainly due to the super-centralization of politics, economy, and the culture. The lack of the ability to innovate in the regions is another important factor. Therefore the way out of the crisis is decentralization and regional innovation. Decentralization involves deconcentration, devolution, and local autonomy in the fields of economic activities, administration, public finance, and education & culture. Regional innovation involves establishing the regional innovation system, educational innovation, culture innovation, and political innovation. Without decentralization, regional innovation would be impossible. As a democratic alternative, 'decentralization and regional innovation' is a new vision of the regional development in Korea. It's vision coincides with those of endogenous development strategy, people-centred development strategy, and post-fordist development model. The philosophical base of 'decentralization and regional innovation' should be self-determination and self-management. We must pursue the policy of decentralization and regional innovation directed toward progressive values of participation, solidarity, and ecology. Against the market-oriented decentralization we should move toward a community-oriented decentralization. The core elements of alternative development model in the 21st century might be decentralization, innovation, participation, solidarity, and ecology.