Policy analysis in Korean local governments

Abstract

This chapter discusses policy analysis in Korean local governments and presents the limitations of such analysis, as well as possible improvements. Since Korea has traditionally been dominated by a top-down policy approach from the central government, local governments did not carry out a great deal of policy analysis. However, one of the main forms of policy analysis performed by Korean local governments began with the introduction of the Local Financial Investment Project Review System in 1992. In order to improve policy analysis in Korean local governments, the research institute performing feasibility studies and the local government that commissioned it must have an independent relationship. It also needs to improve policy analysis methods and to apply ex-post controls and penalties on research institutes performing the studies. Lastly, this chapter suggests application of standard analytical criteria and expansion of their policy analysis scope to small-scale and non-financial investment projects.