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Economic and social development, 1977–1991 EditLong-Term Socioeconomic Development Macro-economic Outlook Briefing, April 11, 1978In 1973, the EPB created a committee to build a policy framework for Korea’s long-term economic and social development. It set two long-term goals: Achieving exports of USD 10 billion and a per capita income of USD 1,000 by 1980. In 1976, KDI was given the role of policy coordinator to oversee this important initiative since it encompassed so many areas of the economy and society. The institute worked closely with the EPB and organized 20 task forces composed of experts from various fields. KDI researchers acted as secretaries for each of the task forces. This initiative on building a policy framework for Korea’s long-term future was the first of its kind. An advisory committee consisting of 28 experts from the World Bank and other international organizations was also established.The committee reported its findings two years later. KDI estimated that the Korean economy would grow at over 10% per year for the next 15 years. The labor supply was expected to increase at a rate of over 3% in the 1980s. The report also forecasted productivity to grow sharply due to improvements in education and technology. As incomes grew rapidly, the report also expected greater demand for improved living standards and social welfare programs in education and health, housing, the environment, and shared growth. The report made policy recommendations to implement structural reforms and invest in technology and manpower to promote export-led, heavy and chemical industries. By the 1990s, KDI stressed the need to shore up the country’s balance of payments and to rely less on foreign currency, in light of chronic trade deficits. The institute also recommended measures aimed at import liberalization and financial deepening as a way to enhance the global competitiveness of domestic industries and to strengthen the economy. By the early 1990s, Korea was able to achieve many of its economic development goals, defying the critics who believed that the policy goals of the 1980s were too ambitious. From 1977 to 1991, Korea’s GNP grew by 9.2%, resulting in a GNP of USD 7,007 per capita, which was in line with KDI’s initial forecast. In the 1970s and 1980s, the government adopted many of KDI’s policy recommendations that sought to transform the industrial structure, promote science and technology, and facilitate broad-based social development. Many of these policies had a lasting and profound impact on Korea’s economic and social development.
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