부산 지역경제 성장을 위한 효과적 재정 운용 방안에 관한 연구 = (A) study on an effective financial plan for the growth of the economy of the district of Busan
At this juncture of the full-fledged launch of the local self-government system in Korea, municipal governments face the critical challenge of nurturing their district economies. Therefore, a study on how local finance is correlated with district economies and to what extent local financial expenditures affect the growth of local economies would be meaningful, because it would lay the groundwork for an effective application of local finance for the growth of district economies.
This research takes on two tasks. First, it analyzes the primary factors affecting district economies and local finance so as to examine the correlation between the economic strength of districts and their local financial expenditures. Second, based on the findings of this analytical research, it determines the financial policies and plan that would ensure the vitalization of district economies.
We have adopted two different approaches to conducting this research. First, since Busan was promoted to the rank of a metropolis 40 years ago, its government has extracted knowledge from its experiences on how changes are correlated to the growth of district economies and their financial position. Based on such accumulated knowledge, the Susan metropolitan government has arrived at various conclusions that are apparent in its official internal administrative reports.
The other approach involves a calculated evidential analysis, through which the correlation between factors is determined. This approach makes a general observation of the factors that determine the economic strength of districts, the correlation between the economic strength of districts and their financial position, and the relationships among the various factors affecting local financial expenditures.
The following are the conclusions arrived at from the calculated evidential analysis that was conducted in this research.
First, the results of the analysis point to the following as the factors influencing district economies: in terms of socioeconomic factors, population density, administrative demarcations, and the inflation rate; in terms of industrial structure, the urbanization rate, and human resources; and in terms of finance, the general accounts of the previous year, and the local tax share.
Second, the results of the analysis indicate that it is important to select strategic potential investors to ensure that the factors influencing the growth of district economies will be fully exploited.
Since the expenses involved in economic development have been found to be the single most critical factor influencing the district GRDP(Gross Regional Domestic Product), they point out the need to develop a district economic vitalization plan employing industrial economic support systems such as the establishment of industrial complexes and the construction of ports and roads.
Third, the results of the analysis indicate the need to innovate the budget system and to introduce a budget implementation point system in district economies. It is difficult to accurately measure the growth of district economies, what with their current budget system being implemented by function, without any post-evaluation being made. In addition, no support system has yet been developed for the effective nurture of district economies. Their current budget system has no virtual device that allows autonomous organizations to form a broad economic sphere for sharing financial expenses for investments.
In addition to this new budget system, it is also necessary to develop an innovative financial economic policy evaluation system. Even if various financial policies have been implemented to activate a district economy, the effective investment is dubious without a practical post-evaluation system. Due to this shortcoming of the current district budget system, which is being executed for businesses that are subordinate to a lead organization, district budgets are frequently wasted.
Finally, a broad economic sphere should be constituted and a financial investment-sharing system among autonomous organizations as well as a fair income distribution system should be established, together with the legal and institutional devices for such. It is also important to be keenly attentive in the process of drawing up an administrative demarcation line so as to prevent a district economy from shifting to a shutout economy or a bloc economy.
The higher the population density, the broader the administrative district, the higher the urbanization rate, the larger the pool of human resources, and the greater the general account expenses of the previous year are, the higher the district GRDP will be. In the meantime, the higher the inflation rate and the greater the local tax share is, the lower the current year' s district GRDP will likely be. Such financial variables as the general accounts of the previous year and the local tax share exert an especially critical influence on the district GRDP, as revealed by our analysis.
Second, the revolving analysis conducted on the factors that determine the economic strength of districts and on the factors that determine local financial expenses has demonstrated that a linear revolving process has been formed in such a process as, for example, an increase in the previous year's financial expenses, the current year's district GRDP, the local taxes, and the current year' s financial expenses.
Based on the results of the abovementioned positive calculated analysis, we can lay down an effective financial policy that would bring about the growth of district economies. Such policy is described henceforth.
To increase a district' s financial expenses by expanding its finances, measures must be put in place to directly secure its financial sources from its finances as well as from reliable financial support sources. It is especially worth noting that with the abolition of the local concession money system next year, the Busan metropolitan government will face a decrease in income from reliable financial support sources that help it balance its accounts, and will thus have to provide for countermeasures. It will also have to efficiently manage its established financial sources and convert them into usable financial resources so as to bring about actual financial expansion.
As for innovative financial approaches that the Busan metropolitan government could adopt, it should speed up its project execution rate to enable it to reach its established budget and thus minimize the balance that it will carry over from the previous year. This will prevent its financial sources from doing long-term hoarding. Although accounts payable are unavoidable, financial expenditures should be made while decreasing financial dependency, to bring about an effective decrease in financial rigidity. Furthermore, it is important to have an effective funds utilization plan to prevent their depletion. For instance, this plan could include the reduction of ordinary expenditures.
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