1.3
Intergovernmental Agreement System for Regional Development Cooperation
지역개발 투자협약제도 도입연구(RR2000-7) Yang-Ho Park and Won-Sup Lee
2000. 9·219 pages·Korean
Background
This study, as a supplement to the 4th Comprehensive National Territorial Plan(2000-2020), suggests the introduction of an intergovernmental agreement system for regional development. This study also suggests detailed measures for the introduction and implementation of an intergovernmental agreement system.
It has three objectives: to examine the actual conditions of intergovernmental relationships in public project investment; to draw implications from the experiences of such foreign countries as France, USA and Germany that employ an intergovernmental cooperation system; to suggest likely model of intergovernmental agreement system for regional development in Korea, based on the existing problems and experiences from foreign countries.
Areas of Analysis and Major Findings
The scope of the research and corresponding major findings are as follows. First, existing intergovernmental fiscal cooperation system between the central and local governments is examined for the identification of problems. Excessive subdivisions and restrictions to grants-in-aid from the central government cause difficulties to local governments in promotiong strategic projects. Other problems include the uniformity that does not reflect regional characteristis and the self-reliance of local governments, the lack of standards for the share of public expenses between central and local governments, and the dominance of central government.
Second, four theoretical blocks of intergovernmental relations, decentralization, intergovernmental fiscal coordination and interorganizational problem solving are
discusses in this study for the development of conceptual framework. These theoretical blocks, linked to one another, support to establish an integrated model of investment agreement for regional development. Examples of intergovernmental cooperation from France, the United States and Germany suggest that the French model of plan contract system can be used as a bench mark for Korea.
Third, a model of intergovernmental agreement is proposed, which can be executed under the system of local autonomy. The model consists of several components including the scope and contents of proposed projects, the duration of the agreement, the share of expenses, the guidelines, negotiation and deliberation of the proposal, signing, budgeting, and evaluation.
The study suggests that an intergovernmental agreement system be adopted after carrying out empirical projects such as projects to enhance regional competitiveness, to expand SOC and to exploit regional resources. Specifically, roads, industries, technology innovation centers, tourism and culture, river basin management, and urban housing redevelopment are involved in these projects.
The study also emphasizes to take a gradual approach to prevent potential side effects of the new system. The system has to be implemented in full scale after substantial experiences are accumulated for a considerable length of time. Fiscal and legal arrangements are essential for the successful introduction of an intergovernmental agreement system to Korea.
The intergovernmental agreement system is expected to bring several benefits with it. The relationship between central and local governments will be transformed to a partnership with interdependent relationships. Public investment will become more efficient by avoiding overlaps in efforts between different actors, and by promoting strategic projects. In addition, a collaborative regional development mechanism can be established through the harmonization of state-level and regional interests.
