Introduction
The fiscal policy in Korea is undergoing a profound change since the recent economic crisis. Budget balances improved following the initial deterioration, but government liabilities have jumped to almost 30% of GDP. Total spending is on a rising trend while welfare programs to cope with the decline in employment and the growing income disparity are increasing their share in total spending. In addition, greater use is being made of fiscal policy for counter-cyclical purposes as evidenced by the high incidence of the frontloading of annual spending in the first half of the year and the large supplementary budgets in the second.

These changes indicate the arrival of a new age of fiscal activism. The first period of fiscal activism dates back to the 1960s and 1970s when the government-led industrialization efforts required large amounts of public spending that resulted in annual deficits of around 3% of GDP. This period ended in the early 1980s when the government embarked on a drastic fiscal consolidation to cure the chronic inflation and stabilize the economy.

After achieving a surplus in 1987 for the first time in history, the government continuously increased public spending to address, among others, the shortage in infrastructure investment. But this time, the increase in spending was financed by the concomitant increase in revenues, with the budget remaining more or less in balance and the debt-to-GDP ratio falling down to less than 10% just before the crisis.

The economic crisis, however, changed the mindset of the general public as well as policymakers. Balancing the budget is now considered not as the principal objective of fiscal policy but as something that can be overridden when the economy grows slower than expected. In the same vein, limiting the growth in total spending and tax burden to the minimum is no longer regarded as a virtue, and we observe an increasing call for the active expansion of welfare programs at the cost of a worsening fiscal deficit or a heavier tax burden. While the previous fiscal activism centered on the issues of long-term economic development, the current emphasis is on the short-term counter-cyclical management of the economy and the promotion of social equity.

This research monograph is a collective work to find ways to enhance the efficiency and effectiveness of various policies in this age of new fiscal activism. The first chapter overviews the interplay between growth and equity and the policy options to reinforce their inter-dependence and minimize the conflicts between them. Following chapters address specific areas of concern such as employment services, rental housing, workinjury rehabilitation cares, cultural programs, public credit guarantees, research and development programs, direct payments for farmers, and the balanced regional development.

The main message of this monograph is that in many cases, there is large room to promote growth and equity simultaneously. In particular, when the benefits of a policy are defused across various income groups, the effectiveness of the policy can be enhanced by redefining the target population. In the provision of services, the government can employ market-type mechanisms such as vouchers and rely on private-sector suppliers to improve efficiency and focus the benefits on low-income groups. Rethinking the
objectives of individual policies and finding the most cost-effective way to achieve them should precede any discussion on the blind increase in the aggregate level of welfare spending.


1. Growth and Equity: Their Relation and Policy Issues | Youngsun Koh

Background and Purpose
After the recent economic crisis, there have been concerns over the rapid increase in welfare spending and its negative impact on economic growth. But in most cases, growth and equity are compatible goals that can be pursued simultaneously. Growth can reduce poverty and lead to a more equitable distribution of income, while the latter can in turn contribute toward a higher growth by making it possible for low-income groups to invest in human capital and strengthening the social cohesion. This paper aims to find ways to increase the effectiveness and efficiency of public spending from the perspective of growth and equity.

Main Results
First, we review the literature on the relation between growth and equity. Theoretically, there are diverse mechanisms through which an equitable income distribution can either promote or retard economic growth. Existing empirical studies are not conclusive on the overall impact of income distribution on growth. The best policy is therefore to reinforce growth-promoting mechanisms while restraining growth-retarding ones.

Of particular importance in this regard is the early intervention in an individual’s lifecycle with the provision of childcare and educational services. Higher income groups are likely to enjoy a greater chance of higher education and job training, which widens the social and economic disparity between lowand high-income groups. Focusing the early intervention on low-income families can promote growth by making possible the full realization of their children’s individual potential and help smooth out the income distribution by providing an equal footing for their children for higher education.

The current childcare system in Korea has large room for improvement. The government is distorting the market by subsidizing only a part of the care providers, regulating the service charges, and prohibiting for-profit facilities from entering the market. Reducing or eliminating the subsidies to providers, increasing direct supports to lowincome families, and deregulating the market would increase the effectiveness of public spending in helping the poor and induce a market-driven expansion of childcare services.
Similar changes in the policies for primary, secondary, and tertiary education are needed as well. In addition, the government should consider strengthening active labor market policies, which are at an early stage of development in Korea and are deemed insufficient in terms of both quantity and quality.

Various welfare programs need to be also restructured to focus on low-income groups. The National Pension Scheme is unable to provide a necessary retirement income support to those with a poor labor market history and the greatest need for such support. Government subsidies to the National Health Insurance are also being called into question as they benefit community-based subscribers regardless of their income level while no support is provided to lowincome firm-based subscribers. Similarly, housing programs and credit guarantee programs are targeted more at medium- and high-income groups and less at low-income groups. Redefining the target population would also reduce the undue state intervention in the market mechanism and improve the efficiency of resource allocation.

Lastly, we discuss the overall direction of fiscal policy in the years ahead. In advanced countries, a significant part of welfare spending is directed at the elderly, mostly in the form of universal retirement pensions. Welfare spending for the working age population also has a universal nature, benefiting high- and middle-income as well as lowincome groups. Such spending pattern is believed to have lowered the savings rate and hampered the economic growth while contributing less to the increased upward mobility of low-income groups. It is obvious that benchmarking the current level of spending in advanced countries and following their example blindly is not the best option for Korea. Instead, the increases in welfare spending should be based on a thorough examination of individual welfare programs regarding their relevance, effectiveness, and efficiency. In particular, when the rapid population aging is expected to increase the overall tax burden and reduce the growth rate, it is absolutely necessary to minimize the negative impact of the tax and benefit system on savings, employment, and investment.

Conclusion
Current debates on the choice between growth and equity often lead to ideological dead ends and do not help solve the problems in the real world. Instead, for each individual policy, we should focus our efforts on searching for the most cost-effective ways to achieve its goals whether it is geared toward redistribution or not. In particular, the target population should be redefined and market-type mechanisms such as vouchers should be employed whenever possible. For this purpose, the system for income report and verification should be overhauled as does the general welfare service delivery mechanism. In addition, strong political leadership is indispensable to neutralize the oppositions from supplier groups and support the reform.


2. Employment Assistance Services | Gyeongjoon Yoo?JooSeop Kim

Background and Purpose There is an agreement that improving Korea’s employment services is important, but where and how fast it has to go is a problem to be solved. A commonly held belief seems to be that all these employment security, job guidance, and job training should be co-related and cooperated efficiently. But, how the roles and functions between the government and the private sector are shared in the long run and/or short run is still an issue.

Korea’s public employment stability centers, unlike those in advanced countries, have only recently started to play up to its expected role. Up until 1997, or immediately before the financial crisis and the ensuing mass layoffs, the unemployment rate in Korea stayed below 3% on the strength of continuous high GDP growth. It was almost inevitable, therefore, that there was minimal social demand for public employment services.

But it all changed with the mass unemployment that erupted in 1998. The mass unemployment resulted in an extension of Employment Security Centers (ESCs). As the unemployment rate reached a crisis level in 1998, a total of 99 ESCs were installed. But the ESCs, hastily deployed in the face of a national unemployment crisis, were unprepared to fulfill the roles and functions on par with those in advanced nations. Besides, the private employment services are only partially functioning in the manpower data bank and labor market such as head hunters and daily work. But the functions of the private employment services are not working well by themselves.

This study aims to identify the shortcomings of employment assistance services and suggest appropriate policy recommendations to upgrade the standards of such services in Korea.

Main Results
This study takes a look into the current states and some of weaknesses of the public employment stability agencies and analyzes the historical background. In addition, the
study addresses the current state of ESCs and analyzes in terms of activities under the Ministry of Labor’s Organizational Regulations, such as employment assistance
services and employment insurance.

The problems observed from the ESCs are reviewed in the following list. First, the employment assistance activities, which are the main objective of ESCs, account for relatively low percentage of their entire work load and other administrative tasks account for a relatively high percentage.

Second, the ESCs are lacking employment assistance and job placement services tailor-made for individual job seekers, such as in-depth job counseling. The same applies to not only unemployment benefit recipients but also those with special needs like the long-term unemployed, elderly, and youth. They are not being provided with individualized employment services.

Third, the ESCs’ success rate is low. If this continues, the number of their users will decline, possibly causing the ESCs to be ignored by customers altogether.

Fourth, there is a mismatch between job seekers and job opportunities. Performance records of the ESCs have increased, but the employment and fulfillment rates have actually declined. In other words, the number of successful job placement cases has decreased despite the increase in the number of jobs registered at the ESC per job seeker.

Fifth, ESCs have not fulfilled their role and identity as the hub of local employment services for such reasons as insufficient collaboration with companies, labor unions, civic
groups, private job placement agencies and other related bodies, and the lack of localized services.

Sixth, the size of ESCs’ staffs is insufficient. The 7,351 economically active population per employment service staff as of July 2004 is much higher than in major advanced
nations.

Finally, the ESCs’ Organizational and Human Resource Management is inadequate. There seem to be cultural conflicts between the governmental staffs in charge of administration and management, and the civilian job counselors. Besides, another challenge is to provide a sufficient level of training and education to ESC personnel.

In addition to above, the private employment stability agencies related to daily employment, job offers, and introduction of jobs have problems with low quality services due to the lack of professionalism and small size.

This study also investigates the employment assistance services in advanced countries to find motives and solutions which could be applied to those in Korea. Employment assistance services in other countries could be classified into two parts.

One is that the public employment assistance services are mainly functioning and the private employment assistance services are not a big part of the entire services-mainly operated in Europe. The other is that the public employment assistance services are actually minimized and the private employment assistance services are playing a core role-mainly operated in Australia, Canada, the U.S., etc. Nowadays there is an increasing trend that the public-service-orientated countries are trying to extend the private employment assistance services and improve the efficiency.

Conclusion
As the labor market is constantly changing, it is required that the employment assistance services also expand and at the same time, the creativeness and efficiency from the private sector extend as well. In this process, not only the public but also the private employment assistance services should grow altogether, and the core value of the employment assistance agencies needs to be organized and strengthened. Furthermore, some policy recommendations to upgrade ESCs are as follow: First, there should be a stronger collaboration between ESCs and other related agencies. Second, a sufficient number of job counselors should be acquired and retained, and job counselors should be guaranteed with adequate working conditions to improve their capabilities. Third, ESCs evaluation mechanism should be adjusted to firmly establish the independent operation regime at an early stage. In addition, reinforcing marketing efforts to collect job opening information, increasing awareness on the ESCs’ services,
diversifying employment services, and building a one-stop service system are some of other tasks that should be addressed to upgrade employment assistance services in
Korea.


3. Efficient Provision of Public Rental Housing | Eui-Chul Chung

Background and Purpose
Provision of public rental housing is a major low-income housing program in Korea. The Korean government plans to provide one million units of National Public Rental Housing and additional 500 thousand units of 10-year Public Rental Housing by 2012, which will increase the long-term rental housing stock to 15% of the total housing
stock. About 60 trillion won of public capital including the government budget and the National Housing Funds is planned to be mobilized.

While these efforts are expected to greatly improve the housing conditions of low-income households, there are several issues to be discussed, which include the feasibility of plans, appropriateness of public fund allocation, and affordability of target households. Policy implementations without sufficient examination of such issues would result in inefficiency in programs and also would increase social costs. This chapter reviews and evaluates current public rental housing programs and suggests future policy directions.

Main Results
As of 2004, the rental housing stock takes 8.9% of the total housing stock. Especially, the rental housing stock with more than tenyear rental period takes up only 4.3%. While this condition indicates that more units of rental housing should be further provided to improve housing stability of low-income households, to enhance the efficiency of the rental housing programs such programs should be beneficiary-oriented by fully taking account of the specific needs of target households in terms of locations, housing types and sizes.

The currently planned number of units by housing size category and the related financial assistance from the government budget in the National Public Rental Housing
Program should be adjusted in such a way that more number of units and greater amount of government financial assistance are distributed to the smallest housing size category. Also, to improve vertical equity of the public rental housing programs, the costbased rent determination rule should be replaced by the income-based rule.

Horizontal equity should be maintained between the public rental housing programs and the demand-side assistance programs. It is reported that the tenant benefits in public rental housing are greater than the benefits in demand-side programs. The demand-side assistance should be gradually increased so that a balanced and more equitable assistance scheme can be established when rent-subsidy programs are introduced in the future.

To promote rental housing provision by the private sector, private entities with a large long-term capital should initiate the market because rental housing business in the private sector requires economies of scale and the stable long-term operation of capital. Suitable ways for public pensions and funds, insurance companies, or real estate investment trusts to participate in the rental housing business should be searched for.

Conclusion
Considering the share of the current rental housing stock, which is just 4.3% of the total housing stock, rental housing provision should be continued until the rental units
reach a certain level. However, to improve the efficiency of public rental housing programs, such programs should be well matched with the needs of low-income households. Also, the equity aspect of the programs should be taken into account in such a way that affordability of low-income households can be a major criterion of determining their rental payments. It is necessary for the private sector to actively participate in the provision of rental housing. Better programs should be developed for large longterm capitals to initiate the market.


4. Improvement of Rehabilitation Process and the Finance of Industrial Accident Insurance | Hee Suk Yoon

Background and Purpose
Industrial accident insurance covers accidents at work, as well as occupational diseases. It is very important to utilize appropriate means to prevent workplace accidents and occupational diseases as well as to provide effective first aid and optimal medical, occupational and social rehabilitation, so that the pay benefits will go to the injured and sick, and to survivors. Thus prevention, rehabilitation and compensation are the three major areas of industrial accident insurance’ operation.

At present, in Korea, curative treatments and rehabilitation measures are not considered to be successful enough to reestablish the economic activity of the insured persons’ working life. Furthermore, unsuccessful rehabilitation prolongs curative treatment period and produces a large number of disabled, which severely deteriorates the finance of industrial accident insurance.

The purpose of rehabilitation process is to control and coordinate medical treatment (medical rehabilitation) as well as reintegration into one’s professional life (professional
rehabilitation) and the social environment (social rehabilitation), but until now, only limited physical therapy is being provided. In order to guarantee a decent level of livelihood after an accident, rehabilitation programs need to be normalized. This study focuses on the effect of lacking provision of all rehabilitation services and tries to estimate the expected impact of improving rehabilitation process on the industrial accident insurance finance.

Main Results
According to the industrial accident insurance data, the disability occurrence rate in Korea is 32%, which is far more than Germany’s 1.9%. Considering that the accessibility of curative treatments is limited, the high level of disability rate is considered to be caused by the underdevelopment of rehabilitation process. This report estimates the size of disability benefit when rehabilitation process is improved and the number of disabled workers is reduced to that of the level in Germany. In order to control the difference in the effort for prevention and rehabilitation, the costs for these processes are also adjusted. As a result, if rehabilitation process is normalized and achieved as the same level of disability rate in Germany, 94% of disability benefit could be saved. On one hand, costs for prevention and rehabilitation will increase, but on the other hand, bigger savings will occur in the expenditure for disability benefits and curative process.

Conclusion
Under the social insurance system in Korea, statutory accident insurance covers the accidents at work as well as occupational diseases. The industrial accident insurance is responsible for preventing workplace accidents and occupational diseases, providing medical, occupational and social rehabilitation, and paying benefits to the injured and sick. Thus prevention, rehabilitation and compensation should be all integrated in the process, and ensure the appropriate level of services. At present, however, the quality of rehabilitation process is far behind compared to the curative treatments, giving rise to the higher rate of disability occurrence than in developed countries. Consequently, resources in the statutory accident insurance need to be prudently reoriented from curative treatment to prevention and rehabilitation process. Expenses in the field of prevention and rehabilitation should be raised with the improvement in quality, which will naturally lead to a reduction in the expenses in the field of curative treatment.


Issues on the Public Expenditure on Culture-related Projects | MoonJoong Tcha

Background and Purpose
The culture industry is regarded as one of the most promising industries that will maintain the dynamism of Korea and lead the economic growth of the nation in the future. It also contributes to enriching the welfare of people by increasing consumption feasibility of culture or the product of culture, of which income elasticity is known to be elastic.

As culture or the product of culture industry has distinctive characteristics as a public good, or merit good, it is frequently argued that the government has to intervene in the market to reduce distortion. The field of culture for the government budget purpose in Korea consists of six substantially different areas, such as fields of culture industry, arts, tourism, cultural properties, sports, and youth.

While allocating the limited amount of budget to each of these six fields is a delicate issue, it is also very controversial to decide how to harmonize efficiency and equity as
criteria on prioritizing the projects. This study investigates these issues and suggests disciplines that should be considered for rational and reasonable allocation of the budget.

Main Results
After reviewing the current trend and situation of government budget for the field of culture, this paper points out the problems that the current budget allocation has in the
culture field and, in detail, the projects. Figures show that certain problems are found from culture-related projects that are supported, at least, partly by the government.
The problems include repeated investment into similar projects in adjacent areas, underutilization of established facilities, and incomplete suspension of projects
due to inefficient use of budget or initial mis-prediction of total construction cost.

It is also discussed why both efficiency and equity issues in fiscal investment in culture facilities are important. However, it is difficult to find the optimal weights of the two concepts, as equity in general belongs to the philosophy of the government. Nevertheless, it is suggested that the main philosophy of the harmonization between the two issues should be that efficiency forms the main concept in investment decision, and equity is used to rectify problems produced by the investment based on efficiency consideration.

This study points out that the optimal use of limited resources has to be based upon ‘concentration on selected projects.’ As practical strategies, it suggests that (i) the projects that the private sector can carry out should be transferred to the private sector, and (ii) the government should continuously review whether the facilities provided by the government have lost their characteristics of public goods or externality. The study also points out that more rigorous evaluation of projects is necessary, and the projects that are revealed to be inefficient should be either reduced or cancelled.

Conclusion
In regard to the controversy between equity and efficiency, the paper accepts the argument that equity issues for balanced development of local areas may sacrifice efficiency in the provision of culture facilities. Nevertheless, even in that case, the paper argues that the following suggestions should be taken into consideration. First, for local culture-related projects, local governments should take initiatives, which will enhance rigor and responsibility in planning and implementing the projects. Second, culture facilities should be provided based on residential territories or areas rather than administrative areas. Third, more attention should be paid to investment into programs and software, and training human capital when investment in local culture projects is planned. Lastly, when equity arguments dominate efficiency argument, the consensus from the entire nation should be drawn out, as the burden of the project is transferred to all taxpayers.


6. Reforms on SME Credit Guarantee System | Dongsoo Kang

Background and Purpose
As of the end of 2004, the outstanding balance of credit guarantee reached 47.1 trillion won, which supports about 23% of the entire SME loans supplied by banks in Korea.
Since the credit risks of the SME loans are concentrated in the two public credit guarantee funds, Korea Credit Guarantee Fund (KCGF) and Korea Technology Credit
Guarantee Fund (KOTEC), the importance of the credit guarantee in SME financing outweighs the share of guaranteed loans. Despite the heavy dependence of SMEs on loan guarantee, inherent problems in the Korea’s credit guarantee scheme have been widely argued by not only domestic researchers, policymakers and practitioners but also international organizations like IMF and OECD.

Main Results
The necessities for reforming credit guarantee scheme in Korea are full-fledged in various respects. First of all, Korea has already passed through an expeditious growth phase in economic development so that credit risk management is more relevant than further credit expansion through credit guarantee. The empirical analysis on guaranteed firms implies that long-term guarantee does not help the recipient firms improve performance over time. There seem to exist many established firms among medium-sized businesses that have already resolved information asymmetry and banks made comparable profitability with non-guaranteed firms. As such, credit guarantees may be viewed as just a subsidy to non-eligible entities. Also, the excessive emphasis on public assistance toward the economically weak distorts financial
markets. Some government officials have raised the issue of cost effectiveness, arguing to reduce the contributing amounts to KCGF and KOTEC from the national budget.

The scheme is advised to change recipient firms of loan guarantee with special consideration on innovation-oriented SMEs and new entrants. With the recognition that current credit guarantee amounts exceed a socially desirable level, the government tries to adjust overall size, which does not necessarily mean uniform reduction in loan guarantees over the guaranteed firms. Significant cut in guarantee supply will be targeted for the relatively large companies that banks have full incentives to assess and monitor credit risks for lending and the established ones that have already resolved information asymmetry due to long-term relationship with banks.

The blueprint for guarantee reforms should also contain market-friendly operations. First of all, the average guarantee coverage ratio is to decrease over time for the purpose of triggering banks’ incentives to manage credit risks over guaranteed firms. Obviously, banks’ role in credit evaluation and monitoring is of the utmost importance
in reducing the default rates of borrowers since the publicly sponsored guarantee funds are not fully incentive compatible with, and skillful enough for credit risk management. One of the most effective tools to align the incentives of guarantee funds consistent with those of banks is to put more costs on the latter’s shoulder when the loans become sour. In addition, the guarantee premium that the guaranteed pay should increase further.

Conclusion
The aforementioned reform is closely related to the supply side of credit guarantee. In practice, this type of reforms is likely to confront aggressive resistance from the
demanders that are used to the old regime. In addition, the government should take burdens to correctly sort out the firms that are not eligible for guarantee. One of the poten-tial way-outs is to extend guarantees to all incumbent users for longer periods, say 3 to 5 years, and to have them amortize the guaranteed loans until maturity. More importantly, with this type of remedies, the government should go back to the basics, reminding of the grounds for the necessity of credit guarantee, and persistently implement the blueprint set according to the policy priorities.


7. Evaluation of the Direct Payment Programs in Korea | Yong Sakong.Kwang Eon Sul

Background and Purpose A direct payment program means that the government pays money directly to farmers. Many countries such as the U.S., European countries, and so on had already switched to the direct payment program from many price support policies, which have the trade-distorting effects or effects on production.

The direct payment program became known to Korea since the Uruguay Round (UR) agricultural negotiation. Because a decoupled income support is not included in
the aggregate measurement of support (AMS) in the conclusion of UR agricultural negotiation, agricultural economists, farmers, and members of the National Assembly
have insisted on implementing various kinds of direct payment programs.

Starting with the structural adjustment assistance provided through the producer retirement program in 1997, many types of direct payment programs have been also
implemented in Korea. The Korean government announced that the budget plan would increase by 23% of the total budget for agricultural investment and loan. However, the effectiveness of the plan is still in doubt due to the conflicts among policy goals and they cause an equity problem between farmers and low-income urban wage workers as well as the equity problem between large farmers and small farmers. This paper critically reviews the new direct payment programs in Korea in order to lessen their negative effects.

Main Results
The direct payment programs in Korea can be categorized by policy goals for income supports directly to farmers, payments under environmental programs, and structural adjustment assistance through producers or resource retirement programs. However, most direct payment programs in Korea are related directly or indirectly to rice. Since the average income of Korean farmers is relatively lower than that of urban wage workers, and almost 50% of Korean farmer’s income, on average, is generated from rice production, most agricultural policies for income support are focused on rice farmers.

The most important direct payment program in Korea is an income support pro-gram to rice farmers. Under the income support program, rice farmers receive 85% of the difference between the market price and the target price of 170,070 won/80kg from the Korean government. The target price is set by the sum of current average rice price and government subsidy. In Korea, the rice production exceeds the consumption almost by 12% and the set price of 170,070won/80kg is the cause for such excess supply. Furthermore, per capita consumption in rice has been rapidly decreasing and MMA rice import would be expanded according to the conclusion of WTO rice renegotiation. Without the government’s isolation policy of rice from domestic market the price of rice will rapidly fall since the demand for rice is very inelastic to price, and thus the budget for income support program will also increase to compensate 85% of the difference between the market price and the target price.

There would be a way for the Korean government to isolate an exceeding supply of rice. In this case, however, Korean rice market will be still controlled and distorted by the government. It will also reduce the effectiveness of the public stockholding program for food security purposes, which will be implemented this year.

In 2015, Korean rice market will be liberalized. It is not desirable for farmers to adjust only 15% of market changes in preparation of the rice market liberalization.

Conclusion
The direct payment programs are not an investment for the future development in agriculture. Income support programs might be required in the short run but now is the
time to decide a priority for the future development and preservation in Korean agriculture. The fact that the future agricultural environment will worsen, requires that our agricultural policy should focus on investment aids for future farmers.


8. Policy Suggestions for Financial Support by Balanced Regional Development Special Account | Keesung Roh.Deuk Jong Bae

Background and Purpose
The purpose of this paper is to explore the policy suggestions for financial support by the Balanced Regional Development Special Account. The Account was newly established in 2005 to financially support one of the National Agendas, the balanced regional development. It is somewhat premature to evaluate the performance of the Account now, however this paper suggests some policy issues related to its efficiency.

The Account consists of two subaccounts, i.e., the regional development and regional innovation sub-accounts. The former one is characterized as a block grant and
its subsidy is provided to subordinate governments on a top-down basis. This implies that the autonomous decision-making capacity of subordinate governments has been strengthened. However, the total subsidy is dependent upon former projects of subsidies and local concession from the central government, which were reorganized and
repealed, respectively.

The latter is for financial support to trigger innovation on a regional level. Thus, it supports regional industries, development of regional innovation system, and capacity building for local universities. One important feature is to introduce competitive application for grant and proposals for a specific project should be passed through a
selection process.

Main Results and Conclusion
This paper suggests the following policy directions for the development of the Account even though only one year has passed since its establishment.

First, financial support should be expanded to play a leverage role for the balanced regional development. In particular, the increase in the regional development subaccount is needed since most entitled projects and programs are characterized as the former subsidy projects and programs. Its budget was appropriated at 4.5 trillion won in 2006.

Second, pre- and post-project evaluations should be strengthened while autonomy in formulating projects and entrepreneurship in innovation efforts are permitted to local governments. It is necessary that the possible moral hazard should be prevented for the efficient utilization of the fund.

Third, more efforts from the municipalities to initiate at least one new and creative project should be symbolically and successfully made by municipalities. Therefore, a failure of an initiated project for regional innovation can be evaluated ex post on the basis of its innovative efforts and creativity of the project.

Fourth, the complicated budget formulation and appropriation system of the Balanced Regional Development Special Account should be simplified as the simplicity of the system is suggested as one of the 12 successful elements for the local financial support system like the Account.

제1부 총 론

제1장 분배와 성장의 선순환을 위한 과제
　제1절 서 론
　제2절 소득분배와 경제성장
　　1. 분배구조가 경제성장에 미치는 영향
　　2. 경제성장이 분배구조에 미치는 영향
　　3. 분배정책과 경제성장
　　4. 성장과 분배를 조화시키기 위한 정책과제
　제3절 사회적 이동성의 제고
　　1. 사회적 이동성과 정부정책
　　2. 영유아 보육
　　3. 교 육
　　4. 노동시장정책
　제4절 복지 및 여타 정책의 효율과 형평 제고
　　1. 국민연금
　　2. 건강보험
　　3. 주 택
　　4. 중소기업 신용보증
　제5절 복지지출과 재정정책
　　1. 선진국의 복지지출 증가추이
　　2. 선진국의 국민부담 증가추이
　　3. 미국의 사례
　　4. 우리나라 복지지출의 현황과 전망
　　5. 재정정책의 방향
　제6절 요약 및 결론
　참고문헌

제2부 사회부문

제２장 고용안정서비스의 발전방향
　제1절 서 론
　제2절 고용안정기관의 현황과 문제점
　　1. 공공고용안정기관의 현황과 문제점
　　2. 민간고용안정기관의 현황과 문제점
　제3절 선진국의 고용안정서비스
　　1. 선진국의 공공고용안정서비스 변천과정
　　2. 선진국의 고용안정서비스 특징 및 혁신사례
　제4절 고용안정서비스 선진화를 위한 정부의 정책방향
　　1. 미래의 선택에 대한 제언
　　2. 고용안정서비스 선진화를 위한 현재의 과제
　　3. 고용안정센터의 고용서비스 개선방향
　참고문헌

제３장 임대주택공급 활성화 방안
　제1절 서 론
　제2절 공공임대주택 공급정책의 현황
　　1. 공공임대주택 공급 지원제도
　　2. 공공임대주택 건설실적 및 공급계획
　제3절 공공임대주택 입주자 편익 측정
　　1. 이론적 모형
　　2. 입주자 편익 측정
　제4절 공공임대주택 공급정책 평가
　　1. 공급 측면
　　2. 수요 측면
　제5절 공공임대주택 공급 개선방안
　　1. 수요자 중심적 임대주택 공급
　　2. 임대주택 규모별 재정지원비율 및 배분비율 조정
　　3. 입주자 부담 산정방식의 조정과 기타 지원수단과의 형평성 제고
　　4. 민간활력의 적극적 활용
　참고문헌

제４장 재활진료 정상화와 산재보험재정
　제1절 문제제기
　제2절 산재보험제도 개괄
　　1. 도입과 적용범위
　　2. 산재보험료
　　3. 업무상 재해의 정의
　　4. 보험급여
　제3절 우리나라 산업보건 현황
　　1. 재해 현황
　　2. 산재환자 요양실태
　　3. 요양장기화
　　4. 과잉시술
　　5. 재활서비스 현황 및 문제점
　제4절 재활체계 개선의 기대효과
　　1. 산재보험급여 추계
　　2. 재활치료 정상화의 기대효과 - 장해급여 감소
　　3. 재활치료 정상화의 기대효과 - 직업복귀율 제고
　제5절 재활시스템 구축의 미시적 근거와 방안
　　1. 재활진료 도입에 관한 미시적 근거
　　2. 재활시스템 디자인에 관한 고찰
　제6절 결 론
　참고문헌

제５장 문화사업 재정투자의 원칙과 정책방향
　제1절 서론 - 문화분야의 특수성과 논의의 어려움
　　1. 문화 및 문화시설의 특성
　　2. 우리나라 예산상의 문화분야와 형평성·효율성의 문제
　제2절 문화 및 문화시설의 소비와 공급
　　1. 문화 및 문화시설의 소비
　　2. 문화 및 문화시설의 공급
　제3절 문화분야 대규모 재정투자 현황과 문제점
　　1. 문화분야 예산 개관
　　2. 대규모 재정투자 소요 문화사업의 범위, 현황과 특징
　　3. 문화분야 대규모 재정투자의 문제점
　제4절 바람직한 투자방향의 정립
　　1. 바람직한 재정투자사업을 위한 문화시설의 가치 평가
　　2. 문화분야 대규모 재정투자 방향
　제5절 결 론
　참고문헌

제3부 경제부문

제６장 신용보증제도 개선을 위한 정책과제
　제1절 서 론
　제2절 신용보증제도의 현황
　　1. 신용보증제도의 필요성
　　2. 우리나라 신용보증제도의 현황 및 평가
　　3. 외부환경의 변화
　제3절 제도개선 방안
　　1. 기본방향
　　2. 세부내용
　　3. 부작용 최소화 방안
　제4절 비용 분담
　　1. 현행 체계의 문제점
　　2. 분석 모형 및 추정
　　3. 향후 비용분담구조
　제5절 요약 및 결론
　참고문헌
　<부록> 시나리오 ②와 ③의 시뮬레이션 결과

제7장 우리나라의 직접지불제도에 대한 검토
　제1절 서 론
　제2절 우리나라의 직불제
　　1. 소득보전 직불제
　　2. 구조조정 직불제
　　3. 다원적 기능 제고를 위한 직접지불제도
　제3절 우리나라 쌀 시장의 현황
　제4절 직불제의 주요 쟁점 검토
　　1. 소득보전 직불제
　　2. 구조조정 직불제
　　3. 다원적 기능 제고를 위한 직불제
　제5절 결 론
　참고문헌

제8장 국가균형발전특별회계제도의 운영현황과 발전방안
　제1절 서 론
　제2절 국가균형발전특별회계 도입의 이론적 배경
　　1. 포괄보조금으로서의 국가균형발전특별회계
　　2. 지방재정지원제도로서의 국가균형발전특별회계
　제3절 국가균형발전특별회계의 구조와 사업
　　1. 국가균형발전특별회계의 구조
　　2. 국가균형발전특별회계사업과 재원배분
　　3. 국가균형발전특별회계의 특성
　제4절 국가균형발전특별회계제도의 발전방안
　　1. 국가균형발전특별회계규모의 확대와 효율화
　　2. 사전·사후 사업평가의 강화
　　3. 기초자치단체의 자율성 제고
　　4. 재원배분방식의 단순화와 자율편성 대상사업의 조정
　　5. 지역개발계정: 좁은 범위의 포괄보조금으로 재편
　제5절 결 론
　참고문헌