This study seeks to identify the problems of social overhead capital invested until now, in reference to expert discussions, thereby seeking measures for its expansion.
Social Overhead Capital (SOC) is indeed the source of national wealth and the driving motor of economic development. Despite its nature, controversies persist on its negligence over seeking short-term profit. Traffic congestions, transport difficulties and social overhead capital have worked as factors that led inflation in the country’s economy.
Unless the population density of the capital area is not relieved by reducing the demand for social overhead capital and by resolving the imbalance of the use of national land, social problems due to the increased population influx to the capital area is expected to arise starting from 2000.
Discussions on developing countermeasures to resolving the issue of social overhead capital is actively ongoing, which includes: relocation of the administrative capital; reallocation of expense budgets and modification of practices favoring conglomerates when attracting private capital; expansion of facilities satisfying economic and social conditions; inducement of short-term based private investment for the development of major import/export ports; expansion of land transport equipment and facilities, and computerization of the material-handling information network; establishment of specialized complex zones and import/export of raw materials; and development of a national consensus based on national efforts and government reports on the basic development plans.
Social overhead capital can be procured by the following methods: tax increment; price and commission fee increment; loans; recollection of development profits; reduction of consumption; and adjustment of investment and finance priorities. The minimum level of investment will have to be maintained on industries, while providing government subsidies on investments to alleviate the burden laid on private sectors.
Meanwhile, the government and media must facilitate understanding in eliminating national expectations that something can be done without the nation bearing the burden for it, and reinforce public relations in an aim to improve the country’s perception and public order. Although the number of vehicles and goods to be transported is expected to quickly increase with the growth of the economy and various industries, conditions and infrastructures to support the growth are still at a poor level. The rapid increase in the number of vehicles and the consequent lack of infrastructure to support the growing volume cannot support the future, implying the need for nationwide infrastructure development. As non-capital regions are in more need of development, development is expected to take place indiscreetly without thorough planning. However, the imbalance between regions must be resolved in order to efficiently manage development.
사회간접자본 확충을 위한 정책토의(Study of the expansion of social overhead capital)
|Series Title; No||정책연구시리즈 / 91-36|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|
|Holding||KDI; KDI School|