Indicative planning of South Korea as an example of effective post-war reconstruction

Abstract

The article is devoted to the examination of the peculiarities of the implementation of indicative planning by South Korea in order to determine the key aspects of the effective construction of the national economy by the state. The study presents the result of the implementation of the seventh Five-Year Plan of economic development, taking into account the aspect that, starting from the Fifth period, the plans also began to have the word social in the title, because the vector also became more socially oriented. The change in the main tasks of the Five-Year Plans is analyzed. If the first Five-Year Plans were characterized by the beginning of industrialization and overcoming poverty, then thanks to the success of indicative planning, the implementation of instructional reforms became possible already in the Fifth Plan. Based on the achieved results of indicative planning, it became possible to change the implementation mechanism in a more democratic way. Five-year economic development plans clearly demonstrate the characteristics of how effectively the government has implemented policies by constantly adapting to changes in the external and internal environment, coordinating the allocation of resources, and promoting the participation of all stakeholders with strong political leadership. Strong leadership commitment was one of the most important non-economic factors contributing to the success of the Five-Year Economic Development Plans. Strong political leadership, backed by well-functioning institutions and an efficient bureaucracy, helped achieve state-led development through clear implementation of plans. It is suggested that our state will have experience in the development of advisory bodies that could combine public managers from the state and representatives of the private sector, who would be ready to prioritize not obtaining excess profit, but help in building an efficient economy. It is important to understand that the implementation of a full copy of South Korea's indicative planning experience in the case of Ukraine's use is impossible, however, some aspects of state regulation of the economy would be effective in the conditions of post-war reconstruction.