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As an enter to Korea's efforts to revise the country's improvement approach, the OECD and the area financial institution have ready a joint overview of the demanding situations confronting Korea in its transition to a knowledge-based economic climate. The record proposes a four-pronged framework that allows you to empower Korea to successfully faucet into know-how advances and the starting to be inventory of knowledge:
1. An monetary and institutional regime that gives incentives for the effective use of latest wisdom, for the production of latest wisdom, for the dismantling of out of date actions and for the start-up of extra effective new ones.
2. an informed and entrepreneurial inhabitants that could either create and use new knowledge.
3. A dynamic details infrastructure which could facilitate potent verbal exchange, dissemination and processing of information.
4. an effective innovation process comprising corporations, technological know-how and learn facilities, universities, imagine tanks, specialists and different organisations which could engage and faucet into the starting to be inventory of worldwide wisdom; assimilate and adapt it to neighborhood wishes; and use it to create new wisdom and technology.
The file addresses extra demanding situations with recognize to the improvement of knowledge-based actions, and of establishing an total framework for the layout and implementation of extra constant rules conducive to the knowledge-based economic system.
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Housing and Municipal Services. This is one of the sectors in which price relations have been the most distorted. In the short term, the government needs to speed up the restitution process, raise rents on remaining government-owned apartments, and introduce a differentiated rent structure. The government should study the impact of the housing voucher system and investigate the experience of a social safety net in other countries. It should study requirements for a housing finance system, consider the introduction of tax credits, and clarify the revenue sharing formula for personal income taxes.
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Branch ministries should expedite identification of the enterprises to be privatized and submit the privatization plans (developed at the enterprise level) for these enterprises as quickly as possible. After an initial round of privatization of a sample of enterprises, a more extensive privatization of large enterprises should be undertaken immediately. Reform of the financial sector should be accelerated in view of the urgent need to channel external resources to the real sector and stem the decline in production.