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CDI-2013-03-001
The Need Of Government in Economic Development From Korean Miracle: What Is The Implication on Cambodia Economic Development?
Tech Chea Pov
Royal University of Phnom Penh
February 13, 2013
The Need Of Government in Economic Development From Korean Miracle: What Is The Implication on Cambodia Economic Development?
Tech Chea Pov
February 13, 2013
Abstract
Government has played a fundamental role to safeguard the economy in this inter connected world after the lesson learn from 2008 global economic crisis (Jeffrey, 2011). The astounding economic success of East Asian such as Japan, South Korea and recently China have manifested that the government has been strong in providing public goods, performing coordination work, making sure that competition is just, and ensuring a good business climate conducive for investment. Argument of Adam Smith, a Scottish economist, government should play a minimal role in the market economy to allow market to run more efficiently seems not plausible in the modern context as proven by Chinese remarkable growth. Of course, government’s institution has performed a number of important tasks including provision of public goods, tax collection, market guidance and safeguarding, law administration, creation rule of law for the business activities and workers, work coordination, prevent market failure and monopoly which are crucial to run market efficiently. Meanwhile, government could shape the economic institution has also considered as an actor in accumulating human capital through free-education, budget planning, physical infrastructure improvement, research and development, all of which are crucial components for economic growth (Well, 2010). In this regards, this paper attempts to examine on the role of government institutionalism in formulating good policies, directing the economic strategies and utilizing aid effectively base on South Korea’s success, and apply to the Cambodia economic development context. By taking into the difference in contextual and pre requisite into consideration when replicate the economic growth, Cambodia could learn experiences of some best economic performance of Asian countries like India, China, South Korea, Vietnam and Thailand to further improve its poverty reduction scheme and economic performance.
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